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cockerel1

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How to stimulate the Canadian Economy without the government running a deficit.

posted on Jul 17, 2009 05:14PM

Canadians presently have approx. $1.5 trillion stored in RRSP's.

If each holder of each account was allowed to withdraw 5% tax-free for each of the next two years, that would effectively put $150 billion into the market place. If only 25% was spent, (some would put it away for a rainy day), that would mean joe-six-pack would spend $37.5 billion of extra disposable income into the marketplace over the next two years. This, I guarantee, would stimulate the economy and the financial damage to the government would be negligable.

Presently, the Canadian Government is in the process of stimulating the economy to the tune of $50-$70 billion over the next five years, with no guarantee it will work, but with a definite guarantee of increasing the national debt by that same amount, plus interest.