Quote:
Originally Posted by lucx
This pandemic has significantly affected service industries and will continue to disproportionally affect them for the upcoming months. Government assistance may target services industries and infrastructure may not see the stimulus it did after 2008.
That saying, if the City can get North Central shovel-ready and the province can maintain their funding, I'm all for it.
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This is a large recession. Even if infrastructure stimulus is maybe 15% of total stimulus, it will still be nearly as large as the stimulus a decade ago. For infrastructure I think making sure planned expenditures go forward is just as important--municipalities are really bad at short term capital spending above a certain threshold. They left money on the table in 2009, and 2016 because they aren't good at spending.
There will be multiple waves though. Since we just don't know how fast the recovery could be. By next March we will know whether we are looking at a 10% output drop, or 5%, or 15%.
If the sustained drop after the recovery from the big dip is big enough, even with the shape of the recession being different the infrastructure stimulus could be large and long lasting. It may be very different--aiming for retraining to increase capacity to divert people away from the service industry.