These days, no economist worth his salt strays too far from Keynes (ignore the supply siders, they're either insane or authoritarian (or being paid by one)). When everything's fine, market forces can be allowed their dips and swings like a flock of pigeons. But when things get crazy, it's time to get good old Keynes off the shelf, blow off the dust and get cracking.
They're doing it up here. Government revenues have shrunk drastically due to the drop in oil prices, revenue generated by investments and various taxes.
In order to stimulate the economy they're thrown money at infrastructure. You can't see the sky properly because of all the cranes in the way and they're running practically 24/7. You can't drive anywhere and expect to get there on time because every major street is torn up and they're right there working on it from 6 a.m. to 11 p.m. Two of the major hospitals have additions being built that pretty much double their capacity.
There's a theory that many successful countries (from a social standpoint) reside in the Targa climactic zone. Think Scandinavia and Siberia. Canada also qualifies because the majority of the country is up there and holds considerable voting power over the rest of the country's more benign climatery regions. We have a saying (from the Red Green show), "Keep your stick on the ice - we're all in this together".
Up here, you cannot get behind on your infrastructure. The reason the streets are often torn up is because the wild temperature swings are hard on asphalt and concrete. We keep our hospitals up to date (and have basically free health care) because we need a healthy, working population - it's easy to get sick up here(1). We need to keep everything else working because at -40, you can die really fast. We don't want to spend a whole lotta money getting somebody educated, kept healthy through adolescence, trained in the workforce, then have them freeze to death 'cause somebody let a powerline fray.
There's another reason to keep your infrastructure up to date - crime.
I'm on a number of committees relating to crime(2) and neighbourhood development. In our research we found studies showing that the number one way of keeping crime down was to keep up your infrastructure by removing graffiti practically before the paint's dry, replacing old store fronts (we've got government grants), pointedly encouraging businesses (and fining those who don't) to keep up their property, and keeping the streets clean and well lit. We've even got a program started here encouraging people to install extra lighting for their back alley (and providing the light bulbs). There's also huge artistic murals on the side of buildings. All this on a deficit budget.
So I go to the local transit station and notice there always seems to be some guy there sweeping or doing windows or washing the floor and it seems overkill until I also realize that the only person around who seems even vaguely threatening is the busker with the guitar singing waaaaaaaaaaaaaaaaaayy off key. Yes, he's allowed there. There's even a picture of him on one of the murals.
----------------------Footnotes and digressions---------------
1. Yes, I'm aware the ambulance is going to have trouble getting to you if the streets are all torn up. That's why they send two from opposite directions.
2. I've been having a few mental health issues and dropped by the (free(3)) clinic at the hospital. One of the questions on the intake procedure is "have you had any involvement with the police?" When I replied, "Well, yes, I worked for awhile as a volunteer police officer and I'm currently doing quite a bit of committee work", I got these really wierd look, then "no, the other kind of involvement."
3. Yes, I'm going to keep rubbing it in.
