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Boost government spending to combat recession, Canadian CEOs say
Jan 16, 2009
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Latest poll from Canadian Business magazine TORONTO, Jan. 16 /CNW/ - The government should spend more to see the economy through the recession, say Canadian business leaders, but some are wary of too much spending. This, according to this week's web poll conducted by COMPAS for Canadian Business magazine and canadianbusiness.com. As the Conservative government gets ready to deliver its eagerly awaited budget at the end of the month, the 140 CEOs surveyed weighed in on the role of government in stimulating the economy. Infrastructure investment A slim majority of the panelists (52%) believe the best way to prevent the economy from tanking further is for the government to spend heavily. Infrastructure investment is expected to play a large role in the upcoming federal budget, and the CEOs provide guidance on how to do it correctly. Most business leaders say government should fix what's broken first before committing money to new projects. The respondents also believe workforce training should be integral part of any spending plans, and that infrastructure spending should be phased in over a long period of time. Drinking ourselves sober? But not every respondent was thrilled at the prospect of boosting spending. Government spending can actually make matter worse, according to 40% of the respondents. It can lead to lower spending tomorrow, increased taxes, and debt default. "It is not wise or possible to try to drink yourself sober. The developed world needs to develop an instinct to save, not feed a desire to spend," wrote one CEO. For more on CEO's view of what should and should not be done to stimulate the economy, see: http://www.canadianbusiness.com/managing/ceo-poll/ Up-to-the-minute surveys on today's issues Every week, Canadian Business magazine's CEO/Business Leader Poll asks small and medium-size business executives tough questions on issues that affect all Canadian business people. Undertaken weekly by COMPAS on behalf of Canadian Business magazine, the poll results appear in print and weekly at www.canadianbusiness.com/managing/ceo-poll. Find out the results of recent polls Some of the recent COMPAS/Canadian Business poll topics/results: Canadian business leaders rebuke central bank policies; Where was the good news of 2008?; What should governments do to weather the recession?; Bail out Canadian auto companies? Only if the U.S. goes first. Poll results for these and many other business topics are available in our CEO Poll archives on the Canadian Business web site. About Canadian Business magazine: Founded in 1928, Canadian Business is the longest-serving, best-selling and most trusted business publication in Canada. Canadian Business stands alone as the business magazine in Canada with 100% paid circulation. With a readership of more than one million, the magazine is published every second Monday, except in January, July and August, when monthly issues are published. Special annual issues of Canadian Business include the Investor 500, the MBA Guide, the Rich 100 and the Best and Worst Boards. Visit www.canadianbusiness.com.