This presentation discusses government deficit spending as way to stimulate the economy.

1. Impact of Deficit Spending
By: Paul Young, CPA, CGA

2. Agenda
• What is deficit spending
• Economy
• GDP/Infrastructure Spending

3. Deficit Spending
• Deficit spending means you are spending more money that you are
collecting in Tax Dollars
• Deficits are then part of the Net Debt Calculations
• If you grow deficits faster than GDP then you will force up the Debt to
GDP calculation

4. Canada Debt to GDP

5. Economy
• 2/3 of GDP is driven by Consumer Spending
• Durable
• Non-durable Goods
• Government spending from all levels plays key role in GDP
• Social programs
• Infrastructure
• Business investment plays key role in GDP
• Capital Investment
• Building of inventories
• Exports/Imports play small role, but important role as they drive business
investment
• Trade Deficits reduces GDP

6. Exports

7. GDP Canada
Goals:
1. Support temporary
Construction jobs
2. Support business
investment
3. Social housing
Problem
1. Infrastructure money
needs to support GDP
2. Infrastructure projects
need to profitable
3. Clean Technology
policies have to be
balanced