Let's get this straight, cbrunny is holding Trudeau to task for an economic plan for roughly $10B deficits over 3 years for infrastructure investment? Glossing over the near decade long deficits by Harper and apparently holding his government as the relative better stewards of the economy??But I think most people don't understand that, and not balancing sets a terrible example.
So 'not balancing [the budget] sets a terrible example?' Then take the Harper government to task for their fiscal and managerial incompetence.
A bit out of date as from April, but to the point:
ipolitics:
No matter how you add it up, Harper’s fiscal record is a catastrophe
In 2006-07, the Conservatives inherited a [Liberal] surplus of $13.8 billion — which they turned into a deficit of $5.8 billion within two years.
Since then, they have been in deficit each and every year. In 2009-10, the deficit reached its peak of 3.5 per cent of GDP. They are desperate now to show a surplus in 2015-16 — one surplus in nine years. Since Harper was elected, the federal debt has increased by over $150 billion, wiping out the reduction in federal debt achieved under Chretien and Martin. Not much to boast about there.
Joe Oliver has announced that the government will introduce balanced budget legislation. But legislation won’t keep a government out of the red if it lacks the political will to do so.
What about the government’s commitment to economic growth and job creation? Who hasn’t heard about the 1.2 million jobs created since “the depths of the recession”? Again — time for a reality check.
The figure — 1.2 million — is correct, but almost meaningless. It certainly doesn’t describe the performance of the economy since 2006 and the labour market situation in Canada. Since 2006, economic growth has declined in every year since 2010 and averaged only 1.7 per cent per year.
In the previous nine years, economic growth averaged 3.4 per cent per year. In 2014, only 120,000 new jobs were created — less than in 2013.
At the end of 2014, the unemployment rate was higher than at the end of 2008. The labour force participation rate was lower than in 2008. The employment rate (the percentage of the adult population employed) was lower than at the end of 2008. The youth unemployment rate was higher than at the end of 2008. The share of total employment made up of full-time jobs was less than in 2008 — and the quality of jobs had sunk to its lowest level in a quarter of a century.
Then there’s Oliver’s claim that his government has put money back in the hands of Canadians through its commitment to reducing taxes. This government has definitely cut taxes for high-income, single-earner families with children under 18 — just 15 per cent of all families. They’ve been very good to families with teenage children who — somehow — still need ‘child care’. They’ve been generous to families who can afford to put their kids in sports leagues and summer camps, and they’ve cut taxes for high-income seniors who can split their pension income with a spouse.
The government has announced it will double the contribution limits for Tax-Free Savings Accounts, despite research by the PBO and others indicating this will — again — overwhelmingly benefit high-income Canadians and leave a growing unfunded liability to be paid for by all Canadians in the future. Oliver and Harper claim to be doing this for our grandchildren. Somehow we don’t think they’ll be grateful.
All of this, of course, came after the government’s biggest and most foolish tax cut — the two point cut in the GST which every economist warned them was a terrible idea. Sure enough, it was a major factor in putting the government into deficit.
The key thing to remember here is that these tax cuts accomplished nothing for the economy. None of them contributed to economic growth or job creation. They certainly didn’t contribute to tax fairness.
Numbers don’t lie, but people do. It’s one thing to spin your failures as successes — it’s another thing entirely to try to present a decade of fiscal failure as one long triumph. The journalists going into the budget lockup will have their work cut out for them, trying to separate the Harper government’s fiscal fantasies from the true record of the past ten years.
Last edited: