Now that we're out of recession, we know what's coming next... the dangers of high inflation, high interest rates, and growing debt.
We were taken by surprise by the recession (we should have planning a clearly-defined national employment strategy before the recession even started so as to be standing on firm ground when the recession came).
Now my question. Are we going to wait for inflation, high interest rates, and the national debt to hit the roof before we start fighting them, or are we going to be more proactive in fighting them before they strike?
The way I see it, any responsible government should be planning its battle against inflation, high interest rates, and federal debt while we're in recession, and planning its battle against recession and unemployment while in a boom. It seems though that we always wait to the last minute, fighting inflation, interest rates and the national debt after they've hit already, and then fighting recession and unemployment after they've hit already.
I would say that any responsible government should have a clearly-defined anti-boom strategy and an equally clearly defined anti-recession strategy at all times, ready to implement either whenever necessary. This could mean that in a boom, the government should increase revenue and/or reduce spending so as to cool it down a bit, to help keep inflation, interet rates, and the national debt down. Then in recession, when deflation strikes, it's well-positioned to retrain the unemployed for the jobs of the following boom, thus keeping everyone busy all the time, working in boom periods, and upgrading their skills in periods of recession.
To be fair to the Canadian federal government though, it has done better than most governments in these respects, but there is still room for much improvement.