In part, it was inevitable. Recessions shrink tax revenues so only drastic cuts to spending can keep the budget balanced. And essentially everyone agrees that drastic cuts at this time would be insane.

But part of that huge new deficit is new spending which the government says will deliver a much-needed jolt to the economy. "This deficit is a stimulative deficit," to quote the prime minister.

The prime minister just quoted above was Joe Clark, incidentally. The year was 1979.

Yesterday, a Conservative prime minister -- an alleged neo-conservative ideologue, no less -- announced we are all going back to 1979. And most of the country cheered. Even the pro-stimulus economists agree that stimulus spending has serious limitations. It would be remarkably easy for governments to pile a heap of new debt onto the backs of our children while doing little to ease the current troubles. Source.