Interesting factoid from RBC Economics: Canada led the G7 in growth last year, our economy is now operating at full capacity, and unemployment is close to 40-year lows! YET.... the government projects average deficits of more than $15 billion per year over the next six years! Is anyone else a bit surprised?

One might conclude that demand here in Canada is high, generally speaking, and that we've been in a time of relative prosperity and expansion for at least the past half dozen years, aside from select pockets of weakness. With John Maynard Keynes in mind, I'm left to wonder what economic conditions need to be present to run a budget surplus? How exactly do we intend to effectively tackle the inevitable next recession?

By the way, the US has been forgetting an important component of Keynes' counter-cyclical policy and perverting his Keynesian theory for years and years as their national debt marches meaningfully higher. Not sure that's an appropriate model for Canada to emulate.