U.S. budget cuts can hurt Canada

The American Homeland Security secretary warns the wide array of U.S. spending cuts that are set to go into effect on Friday, will cause pain for Canadians as well.

Janet Napolitano says the cuts will be a problem, particularly at busy Canada-U.S. border crossings. The equivalent of 5,000 American border-patrol agent jobs and 2,700 border inspector jobs will be cut if the U.S. Congress fails to reach a new budget deal by the Friday deadline.

Marvin Ryder of the DeGroote School of Business says this is one example of how government money trickles down, and that this is the same thing that happened when Congress negotiated during the fiscal cliff.