mr. melkonian

3 scenarios arise 

spent more money than it collected from taxes-needs to borrow money

collected more tax money than spent-extra left over

spent equal to the amount collected by taxes

total amount that a government owes to fund deficit budgets

problem is recession will get worse if you don't spend 

but... Aggregate demand is still being held back

use fiscal policy to keep it together

government should spend more than it receives in tax revenue

run a deficit, increase spending, decrease taxes, or both

run a surplus, decrease spending, increase taxes, or both

when it's expanding-slow it down

not too high not too low

canada was in debt 1.3 trillion

who wants to be that guy to slow down the economy??

you don't get elected!

pull an economy out of recession-spend on infrastructure, human capital, job retention

extra stuff over cyclical deficit

structural... financial mismanagement

intervene for non-inflation, full employment

structural deficit won't exist

recognition, decision, implementation, impact

raising/lowering not possible sometimes, especially if it's election time soon...

federal vs provincial-canada vs ontario

if ontario is doing well but canada isn't... do we slow down or speed up?

debt is so high that there's pressure to not raise it more

foreign-owned debt percentage removes capital from country after interest is paid