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2026-11-05 19:36:27
[With the US election over, Carney's defense of Canada's fiscal deficit shrinks] ⑴ Carney used the US-Canada tariff friction to expand fiscal spending, channeling funds into investment, defense, housing, and infrastructure, packaging debt as a necessary measure to safeguard the country's economic sovereignty. ⑵ After the US election, there are two possible scenarios for de-escalation: the Democrats control Congress and reclaim the president's tariff authority; or Trump actively reduces pressure on Canada regarding tariffs. Once trade tensions ease, the existing deficit argument will lose its persuasiveness. ⑶ Economist's view: Canada has long suffered from insufficient investment and weak productivity; even without external trade shocks, there are reasonable grounds to maintain fiscal input. ⑷ Trade friction is merely a short-term excuse; productivity weaknesses are the long-term challenge that Canada's fiscal policy must continuously address.
