STRENGTHENING THE ECONOMY AND SERVICES FOR PEOPLE IN NL
THE GOVERNMENT OF NEWFOUNDLAND AND LABRADOR faces a significant current fiscal deficit. While not the largest deficit in Canada, it is the largest compared to GDP. There is no question that the government will take action to reduce the deficit. The real question is what kind of action, how much, and when.
Will the government bring in an austerity budget, one that slashes spending and lays off large numbers of employees? Key to this question is the fact that government decisions not only affect government accounts; they affect the broader economy.
“[E]very country that introduced significant austerity has seen its economy suffer…all of the economic research that allegedly supported the austerity push has been discredited…
It is rare, in the history of economic thought, for debates to get resolved this decisively.” — Nobel Laureate economist Paul Krugman