Keynesian stimulus: eating the seed corn

[Austrian Economics]

The most recent issue of Maclean's has this newsflash from down on the Keynesian farm: Due to the unprecedented consumption of last year's seed corn reserve, this year's corn acreage had to be substantially reduced resulting in a much smaller harvest. To compensate for this unfortunate event that no one could possibly have foreseen, we will be increasing consumption of this year's seed corn considerably. It's practically a slam dunk that politicians of every stripe will soon be acting on this ludicrous advice:

https://www.macleans.ca/economy/economicanalysis/canada-needs-a-coronavirus-stimulus-plan-heres-what-it-should-look-like/ https://www.macleans.ca/economy/economicanalysis/canada-needs-a-coronavirus-stimulus-plan-heres-what-it-should-look-like/

[Jay-mo]

The most recent issue of Maclean's has this newsflash from down on the Keynesian farm: Due to the unprecedented consumption of last year's seed corn reserve, this year's corn acreage had to be substantially reduced resulting in a much smaller harvest. To compensate for this unfortunate event that no one could possibly have foreseen, we will be increasing consumption of this year's seed corn considerably. It's practically a slam dunk that politicians of every stripe will soon be acting on this ludicrous advice:

https://www.macleans.ca/economy/economicanalysis/canada-needs-a-coronavirus-stimulus-plan-heres-what-it-should-look-like/ https://www.macleans.ca/economy/economicanalysis/canada-needs-a-coronavirus-stimulus-plan-heres-what-it-should-look-like/

Excellent Translation!

[jazz]

Probably be just like the ones Trudeau has been doing for the past 5 years, massive debt, dump into a hole in Quebec or downtown Toronto (Bombardier, transit, etc) and get Ab to service the interest with equalization.

Anybody expecting real leadership out of this govt is dreaming. Canada will probably crack for good at the end of it all.

[ajl]

Of course nobody out there think government should reduce and stream line regulation and otherwise just let the market sort the problem. Government must do something. Well that is what created the problem in the first place.

[biglentil]

A pile of triple BBB debt could turn be rerated junk soon if things dont turn around. Pension funds could find themselves unable to meet obligations. Or worse entire nations.