Not that we should trust everything a bank economics department has to say, but in this case, they're probably right.
Infrastructure spending, not tax cuts, is a more effective way to create jobs and boost economic growth, according to an economic report released on the eve of the release of Canada's federal budget.
The infrastructure economic “multiplier” is significant, Canadian Imperial Bank of Commerce economist Benjamin Tal said. He estimated every $10-billion of spending on infrastructure can potentially create about 115,000 Canadian jobs and lift economic growth by almost 1.5 percentage points.
That's “well above the stimulus effect of a tax cut of a similar size,” he said. Personal tax cuts of a comparable $10-billion would create half the number of jobs – 57,000 – and boost GDP by just 0.8 percentage points.