Granted, Canadians didn't vote for a coalition Prime Minister, but they also didn't vote for 4 years of deficit. In fact, you can still go the the Conservative Party website and see Tory campaign pledges to maintain a balanced budget (here's one, here's another).
Of course, being a Conservative campaign promise of real significance, the Tories are now officially admitting it will be a broken promise. According to CBC (citing a Department of Finance report), the Canadian government will run a $5 billion deficit for 2009-2010 and a $5.5 billion deficit for 2010-2011. The CBC is also reporting that the report, if extrapolated for 2011-2012 and 2012-2013, tells Canadians we can expect 4 years of spending more than we make.
The Tories, who apparently knew and planned for the current fiscal crisis, told us they would give us balanced budgets. Now they're practically guaranteeing that won't be the case for at least the next 4 years.
The list of Tory lies just keeps getting longer. Maybe you didn't vote for the Liberals or the NDP, but you also didn't vote for more economic mismanagement. The Harper government has to go. Flaherty did this to Ontario and now refers to his home province as "a bad place to invest." When he's done with Canada, will Canada be "a bad place to invest?" It is starting to look that way.
Vote Liberal and get budget surplus with social programs. Vote Conservative and get budget deficit with tax breaks for the wealthy. Seems like an easy choice unless you own RIM or your last name is Thompson...
While I will address this tomorrow (hopefully) in a post on the subject, I want to make two comments.
ReplyDeleteFirst, as a Tory, I am personally disappointed that Harper and the Conservatives are being pushed around by the coalition forces into largest massive, otherwise useless and wasteful spending, all in an attempt to solve a problem that Canada can't fix. I agree that the Tories ran on a balanced budget and no deficits; they should cut like hell in order to do it.
However, since that's obviously not going to be the case, I must say that it's a little disingenious for you to chastise the Tories for bringing in deficits while somehow remaining blind (either deliberately or foolishly) to the fact that it was the coalition NDP-Liberals-Bloc that all agreed to spend $30 billion dollars when they replaced the Tories.. you say the Tories are "practically guaranteeing that won't be the case for at least the next 4 years"; have you already forgotten the Liberal's platform when they promised to "find" $12 billion in spending to cut? You can't really have your cake and eat it to.
Regardless of whether the Tories or the Liberals or the Liberals-NDP-Bloc coalition were in power, deficits were going to happen. While the Tories decided to cut the GST, a Liberal government would have increased spending instead and we'd be right at the same place.
The Tories inherited, then squandered, a $13b surplus. Their grand plan for countering a looming economic crisis was to increase spending while decreasing revenues.
ReplyDeleteTheir choice for Finance Minister is a man who proved his ineptitude in Ontario. Unfortunately, Harper didn't conduct his due diligence and now the Tory government has undone over a decade of Liberal prudence.
Since the Tories introduced their first budget, analysts wondered aloud if they cut Canada's economic wiggle room too thin. The answer seems poised to become devastatingly obvious.
Your comment sees you trying to pass the buck, but unfortunately, this bed was made by the Tories and they're going to get a rude awakening.
Yes, you are very much correct in saying the Tories inherited a $13 billion dollar surplus.
ReplyDeleteHowever, you are not correct in saying that the Tories "squandered" the surplus. During their 3 years in office, they have 1) increased spending (at a much lower % rate of growth than your fiscal god, Paul Martin!) and 2) lowered taxes, all with the consent of Parliament.
You may not like it, but the Liberals have *some* responsibility for all this. After all, wasn't it the Liberals that said it is a minority Parliament and Harper must get Parliament's consent to do anything? I do recall the Liberals complaining about some of the cuts the Tories brought it, arguing that "when times are good, that is not the time to cut spending" (e.g. court challenges program).
Second of all, you failed to acknowledge that during their two full years in office, the Tories ran surpluses of $13 and $9 billion dollars respectively, so it's hardly the case that they've squandered the surplus. It might make for a nice soundbite, but anybody with a little bit of knowledge and a brief memory of history will understand; since that doesn't advance your argument, I wouldn't expect you to possess either of these attributes.
Finally, how do you explain your party's position that Canada must go further and deeper into deficit and bring about a $30 billion dollar surplus? Can you explain that to me, please?
A few things...
ReplyDeleteFirst, and most important for you to understand, is that I do not have fiscal gods...
Second, and more seriously, you noted yourself how the Tories have systematically reduced the surplus each year they have been in office (from $13b to $9b to repeating deficits). That seems good evidence, especially considering the strong Canadian economy of their first 2 and 3/4 years, that the Tories have squandered the surplus they inherited. Remember, Harper has "seen this downturn coming for 2 years" so why did he not prepare better for it?
Third, regarding your assertion that the Tories have cut various programs, you'll note that many of those programs had their funding restored in the weeks and months preceding the October election (standard government-buying-votes ritual of Canadian politics). So Harper's "prudent cuts" were, by-and-large, undone during this past summer/fall.
Fourth, your assertion that the Liberals have to take some responsibility for this is a stretch. That seems akin to the guy who caused an accident saying the other guys deserve some blame because they were on the road...
Finally, I believe the Liberal position was a $30b surplus, but, after losing the election, seeing the true extent of the economic downturn, and Flaherty's economic mismanagement, it has become "make sure Canadians make it through this, with deficit if necessary."
Also, as an aside, I notice your last comment doesn't counter my arguments that Flaherty is inept, that analysts worried he cut the surplus too thin, or that cutting revenues while increasing spending is a little bit irrational.
I guess sometimes I get it right...even with dollar signs and decimal points.