Opinion: This is not a 'normal' recession and conventional stimulus like lower rates and government spending won't help with this crisis
People shop at HomeSense in Toronto, Ont., on May 30, 2020, as stores begin to reopen during the COVID-19 pandemic.
A “normal” recession usually features a reduction in what economists call aggregate demand. Business investment in plant and equipment, and household consumption of things like autos and appliances, fall sharply. Employment losses are spread across many sectors but only a small fraction of the labour force ends up losing their jobs.
But this is just the opening act. No one is predicting that the virus will be finished with us soon. Governments have to begin shifting from the immediate crisis response to their longer-run policy program. What should that look like? But the amount of capital being destroyed by the virus today is so large that it threatens the survival of whole sectors of the economy.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Opinion: Why Canada needs to accelerate its digital maturityTo drive us to the next level, governments should look to work with various providers across the country to make 5G a reality
Read more »
Trudeau's daily update: 'We can't pretend that racism doesn't exist' in Canada (Full transcript) - Macleans.caIn his June 1 briefing to Canadians from his home in Ottawa, the PM told young Black Canadians that he is 'listening and that your government will always stand with you.' He also announced funding for cities.
Read more »
How Canada has bungled the COVID-19 endgame - Macleans.caAmir Attaran: Canada is mismanaging its most significant peacetime crisis in a century and the seeds of our failure are everywhere. Here are four things that must change.
Read more »
John Ivison: How Canada can resist China’s intimidation by teaming up with like-minded alliesCanadian academic Stephen Nagy told MPs that Canada needs to think seriously about enhanced co-operation with other middle powers when dealing with China, and that they should collectively lobby th…
Read more »
Canada Revenue Agency opens up snitch line to information about federal COVID-19 aid program fraudThe agency says it’s looking for information regarding people who are receiving either CERB or CESB who are ineligible, or businesses or charities that are ‘misusing’ the wage subsidy p…
Read more »
Political leaders take aim at racism in Canada as protests rage in U.S.Trudeau condemned those who ‘took advantage of these peaceful protests to do significant damage to communities and stores as we saw in Montreal,’ saying they did not represent the majority
Read more »