Factbox: What they said on Canada's deficit slaying efforts

Mon Aug 8, 2011 6:24pm EDT
 
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(Reuters) - Canada took a decade to win back its prized AAA rating after debt downgrades in the early 1990s.

Here are some quotes from Moody's, from Canadian economists and from politicians at the time on how Canada's experience in the '90s relates to the current U.S. situation.

PAUL MARTIN, FINANCE MINISTER IN THE 1990S

"Limiting the growth (in spending) is not cuts at all, whereas making cuts, you're basically cutting down into the bone, and people are going to feel it."

"I think the way in which the United States has tried to stimulate the economy was sound, but you have to couple that with a medium-term deficit reduction program."

"The United States has got enormous tax room compared to almost every other country in the world."

"I believe the European problem is a much bigger problem than the American problem... The American problem is solvable. I don't think the European problem is solvable without Europeans going to much more integration than they have now."

STEVEN HESS, LEAD ANALYST FOR THE UNITED STATES AND CANADA

AT MOODY'S INVESTORS SERVICE:   Continued...