Keyword: Canadian Economy

Explain What "Stimulus" Means to Canada's Finance Minister Flaherty Email Print

Look in any dictionary and you will find that the word "stimulus" is connected to stimulate, meaning the act of generating a form of positive assistance.

This is the type of action that, by acting in a shrewd, timely manner, can prevent a negative response.  It makes one think of that old saying, "A stitch in time saves nine."

Canada's Finance Minister Jim Flaherty, speaking in Ottawa, is apparently working on a different operational definition where stimulus and the act of stimulation are concerned.  While Canada is headed for a likely recession, Flaherty said that he had no plans to introduce an economic stimulus package before next spring's budget.

"We've made dramatic tax cuts already," Flaherty explained.  He later added, "We're not in a recession right now."  While conceding that Canada is "not in a recession right now" he concedes that it is "reasonable" that the nation will be in a "technical recession," which is defined as two consecutive quarters of negative growth, by the first quarter of 2009.

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