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> The C.D. Howe Study: Generalized Conclusions
> 
> This study should be required reading for anyone who believes that we
> can: (a) grow our way out of debt; (b) tax our way out of debt; or (c)
> do nothing about our current fiscal crisis. It begins to address the
> problems created by our current deficits and debt and attempts to
> measure deficit reduction strategies against this base. The general
> conclusions of the study include:
> 
>   The distortive effects of taxes are probably large (i.e. solving the
> deficit problem via increased taxation is likely to bring a net
> harmful effect on the Canadian economy)
>   The depression of the national savings rate by deficits is costly
>   Recent Canadian fiscal policy is not sustainable
>   The short-run costs of deficit reduction should be manageable
>   The credibility of a deficit reduction exercise is critical
>   Deficit cuts are worth the cost
>   A variety of models support the case for deficit cuts.
> 
> The study also points out that Canadians are probably already
> suffering from high deficits and debts. Short-term sacrifice for
> deficit elimination can yield a rich long-term return.[1]
> 
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> [Image] hermae@parl.gc.ca