The Big Story Will the feds' stimulus plan actually help the economy?
6 snips
Nov 26, 2024 In a riveting conversation with Cormac Mac Sweeney, Kevin Page, former Parliamentary Budget Officer and current President of the Institute of Fiscal Studies and Democracy at the University of Ottawa, delves into the federal government's recent stimulus measures. They debate whether the two-month GST holiday and one-time rebate will provide genuine relief or merely serve as political maneuvers. Page examines the potential impact on inflation, demand, and the economy while questioning the overall effectiveness for vulnerable populations as the holiday season approaches.
AI Snips
Chapters
Transcript
Episode notes
Surprise Announcement
- Kevin Page expressed surprise at the government's announcement of a tax holiday and rebate.
- This was unexpected, especially given the current political climate and upcoming election.
Political Motivation
- Kevin Page views the move as primarily political, aimed at addressing affordability concerns.
- He doubts finance officials recommended this stimulus, citing the government's lagging poll numbers.
Pros and Cons
- The GST cuts and rebate offer broad benefits, covering groceries, kids' items, alcohol, and more.
- However, it's deficit-financed, meaning future taxpayers will bear the interest cost.