Every other week, we release 5 Minutes for Business, a publication written by Hendrik Brakel, our Senior Director of Economic, Financial and Tax Policy. In these publications, Hendrik briefly describes current issues that affect the Canadian economy and provides insight on what it will mean for Canadians today and the future. In this week’s edition, he looks at the federal government’s plan to speed up its infrastructure spending to stimulate our troubled economy.
Last week, oil prices fell to a 12-year low, iron ore prices have plummetted and copper prices went from $4.50 a pound to below $2.00. The effects are being felt across the country and the government is turning to infrastructure spending to lessen the blow.
We all know the argument: In 2009, the government spent $13 billion in infrastructure projects, and the stimulus effect prevented a much worse downturn. But is this the same type of economic crunch? Can infrastructure spending really help an economy adjust to lower commodity prices? And what infrastructure should we be focusing on?
Read 5 Minutes for Business to find out.
For more information, please contact Hendrik Brakel.