The giant pop was the bubble that was protecting the province from the global economic meltdown as it burst.
Former finance minister Tom Marshall:
“We have a horrible, global economic slowdown, which appears to be much more severe than people expected,” said Marshall. “We’re seeing job losses everywhere and firms going bankrupt or teetering on bankruptcy. How protracted this recession will be, I don’t know, but it looks like it is going to be severe.
“When times are good, you run a surplus. When they are bad, you run a deficit and spend money. When consumers aren’t spending and businesses are not investing and exports are down, government has to step in and start spending and creating employment. That’s what we’re doing and I’m glad we’re doing it.”
Of course, since Marshall ran cash deficits in the good times, so there’s something there that doesn’t add up.
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