CHOOSING BETWEEN SURPLUSES OR DEFICITS!
QUESTION: Before 2006, when Stephen Harper inherited a thriving economy and a $13 billion surplus from his Liberal predecessors, when was the last time a Conservative government delivered a balanced budget?
ANSWER: It was 1912, the year an iceberg sank the Titanic, a cyclone hit Regina, and Conservative Robert Borden inherited a big surplus from Liberal Wilfrid Laurier.
Fast-forward to the mid-1990’s.
For 27 consecutive years, annual deficits had been the norm in Canada. They had ballooned to over $40 billion each year, pushing total federal debt to more than $550 billion (equivalent to 70% of the nation’s entire economy).
It was a Liberal government that tackled that fiscal mess. With the unfailing support of Canadians for the tough decisions that had to be made, the books were balanced by 1997. And we kept them that way.
Federal surpluses became the “new normal”. To fall back into the red again would be inexplicable.
This Canadian situation is unique in the G-8 group of world-leading economies. None of the others have the fiscal security that Canada has earned – since that crucial fight against deficits was fought and won 10 years ago.
On the advice of taxpayers, Liberals devoted Canada’s surpluses to four sensible purposes: debt reduction; tax cuts; transparent “shock absorbers” to guard against unpredictable crises (like SARS, BSE or 9-11); and investments in health, education, innovation and infrastructure.
But the Conservatives have abandoned this prudent, balanced approach.
They have deliberately squandered Canada’s fiscal strength to keep this country constantly on the brink of a deficit. They want that threat always hanging in the air, so they can hobble the Government of Canada.
It’s Mr. Harper’s ideology – vindictive, exclusionary, fend-for-yourself, don’t give your neighbour a second thought.
But that’s not the attitude that built a great country!
-30-
|
