There should be no stimulus package until a number of conditions are met:
1. 0 inflation. Unfortunately we have failed to achieve that mark because right now we have -0.8% inflation (i.e. o.8% diflation), and as far as I'm concerned, deflation is just as bad as inflation because it causes the same kind of uncertainty concerning the stability of the dollar's value. This would be a good sign that government stimulus is necessary if it weren't for the current interest rate, however, which brings us up to...
2. 0% interest rate. The bank of Canada has dropped the interest rate to 1.5% just today. Hopefully this will be enough to put an end to the deflationary spiral. If not, then let's lower the interest rate some more, perhaps even down to 0% if necessary. Until we reach the point where the inflation is at 0% and the interest rate is at 0% and we still haven't ended the recession, then and only then would I be in favour of finally moving towards any stimulus package. And nothing showing favouritism towards one particular company or industry, but something that could benefit all industries equally, such as increased funding for education in those trades and professions that seem to be proving most resilient against the recession, leaving it up to the industry itself to hire from the new pool of qualified tradesmen and professionals the new industries need.
Again, I'm not against a stimulus package, nor even against increased taxes if necessary, but either of these moves ought to be last resorts. And if we do have to increase spending, then let's not go into deficit spending but rather increase taxes if necessary.
