Ontario to Spend, Spend, Spend

Evidently Premier Dalton McGuinty and company believe strongly in Keynesian economics. Under Keynesian economics, it is believed that large increases in government spending can raise an economy out of recession. This is due to the fact that government spending, if done properly, creates many jobs and these people with new jobs start spending money and that creates more jobs and the cycle continues.

Ontario will be putting forward $27.5 billion over the next two years, which is a large increase compared to its usual $16 billion commitment every two years in the past. This money will be going towards public transit, roads, schools and hospitals according to Premier McGuinty. With over 300,000 jobs lost in manufacturing over the past years in the province, the Conservatives are quite skeptical that this spending will help offset these losses.