MR. HARPER’S DELIBERATE DEFICIT
While the resource-based economy of western Canada is enjoying high world prices for commodities like oil, uranium, potash and grain, Canada’s national economy (which is largely built on manufacturing) is a different story.
In fact, most private-sector economists, as well as the Bank of Canada and the International Monetary Fund, are now predicting a significant economic slowdown for Canada which is likely to last longer than first expected and could put the federal government back into deficit.
Isn’t that a fine state of affairs!
After barely two years in office, the Conservatives have squandered Canada’s hard-earned fiscal security! How did this happen?
Back in 1993, at the end of the Mulroney era, our national economy was in the pits and the federal deficit was running at more than $40 billion a year. Liberal governments – with the allegiance of most Canadians – tackled the challenge of fiscal responsibility and turned things around.
By 1997, the deficit had been eliminated. We then generated 10 consecutive surplus budgets, while reducing debt, cutting taxes, investing in health, education, innovation and infrastructure, and shielding Canadians from unpredictable shocks like the SARS outbreak, mad-cow disease, international currency crises, and the terrorism of 9-11.
When Liberals left office in 2006, we turned over the strongest economy, the best fiscal situation and the cleanest books in Canadian history. The Harper government inherited about $100 billion of financial flexibility to work with.
And they’ve blown it!
By becoming the biggest spending government ever. By eliminating all the prudent “shock-absorbers” that used to be transparently written into federal fiscal projections to avoid deficits. And by slashing the tax base in such a way that there’s no room for decent reductions in personal income taxes.
Mr. Harper’s management is proving to be both reckless and incompetent.
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