Interest Rates and Interest Rates

balanced budget: Infrastructure, from sewers to subways, is rundown, according to Globe and Mail. Investing now in early-childhood education, for example, would pay off in improved productivity later. Interest rates are at historic lows. While a conservative minority of economists supports the government balanced-budget approach, a broader consensus of experts believe that running a modest deficit over the next couple of years, with the money going to any or all of the above, would be the wiser approach. Don Drummond, the former chief economist of the TD Bank and associate deputy minister of finance, asks one simple question: Is the economy running below its potential The answer, unequivocally, is yes. If there are projects at hand that can be financed at record-low interest rates with long-term payoffs, then we shouldn’t let a balanced budget stand in the way of that, believes Andrew Jackson, senior policy adviser for the Broadbent Institute, a progressive think tank. (www.immigrantscanada.com). As reported in the news.