Recently, The Economist has highlighted the issue of Canada’s cautious spending in its article “Hey, small spender”. Commenting on the conservative nature of Canadian corporations and how their hesitancy to spend aided in weathering the recession, they emphasize how it is now harming their recovery.

The fact that Canada’s GDP is growing slower and slower is a cause for concern and is attributed to many factors, including low prices on resources exports and the housing boom. How can businesses be encouraged to take more risks and spend their money to compensate for these changes? The government is wavering between using tactics persuasion versus tactics of bullying as this issue continues to escalate. Tactics of persuasion include reducing tax rate, and increasing tax incentives. Investments need to be made, and money spent in order for the economy to grow and jobs to be provided. The attempts of the government continue to increase in desperation as they consider entering the schooling system, but still remain simply attempts.