Friday, December 19, 2008

Spend, Spend, Spend

Thank goodness that NDP/Liberal/Bloc Coalition didn't take control of our national finances.

I mean those left wingers were going to blow the hinges off the budget with a massive spending spree.

That would have meant monstrous deficits.

Luckily, the more fiscally responsible Conservative government is still in power, meaning it will blow the hinges off the budget with a massive spending spree.

And we all know that monstrous Conservative deficits are better than monstrous Left Wing deficits.



"Expert" Tom said...

Until people, media included, realize that the only way to generate wealth and prosperity is to either create/find/grow/mine new resources or use the resources we have more efficiently. If this spending spree can't address either problem then its a waste of money, paying from one pocket to another hoping that not too many coins get lost in the transfer.

Bec said...

I'm not happy either but when they are stuck between a rock and a hard place, what other option is there?
If not this then what about massive unemployment cheques for the same amount? (sarcasm)

I am hoping that there will be an item on there from the wish list of conservatives. Fingers crossed!

Dave Hodson said...

We have to try to spend ourselves out of a recession! I mean, it worked for Bob Rae in Ontario, didn't it? Oh, wait, on second thought...

Anonymous said...

Letting the free market work looks like you're doing nothing, when you're already viewed as a week government that's bad it can bring you down. But a little spending, some inflation and and a few no-strings attached bailouts make it look like you're busy helping the people.

Most importantly it stops the other parties from saying you're standing by idle, and they can't very well advocate standing by even if it IS responsible because they're even worse.

But it's easy for them to say they'd be better. Although lesser crisis have causes more irresponsible spending from Liberals in the past.

Anyways, Harper is a trained Economist, he's not stupid he knows full well it's a bad idea but a worse idea is losing power to the coalition because your budget gets shot down for looking like it's doing nothing.

I actually can't think of a concrete example of when deficit spending helped anyone in the mid or long term, at-least nothing proven.

Anonymous said...

any boob can figure out that the whine and drone of the coalition re:
"stimulus package" equals sending this country in to deficit.

That the PM's obliging may make his government accomplices but it may also give them a lever of their own once we're out of the challenging times, WHICH, according to the Bank of Canada dude we will be.

Anonymous said...

In fairness, the NDP wanted to drop 50 billion in corporate taxes. That is one item alone. When we factor in their desire to kill the tar sands, and delving out billions in "government housing projects, and consider their green plan costs coupled with pubic ownership projects listed in their policy manuel, 30 billion is a bargain.

At least infacstructure is usable.

wilson said...

So what's your answer Gerry, to 500,000 unemployed?
What happens when their EI runs out? Welfare?

The Conservative way is a hand up, not a hand out.
Those on EI will be retrained for future jobs, not allowed to step onto the welfare train.

It's very Conservative to use the EI fund to increase Canada's productivity.
It's not about today, these moves are about the tomorrow AFTER the recession is over.

Anonymous said...

DONE PROPERLY going into debt isn't a bad thing (I know, big caveat) The right infrastructure projects can increase the GDP of Canada and actually pay for themselves. One example - In Winnipeg we recently completed construction on a rail bridge that cut through a major north-south artery and a major truck route. The bridge will pay for itself over its lifespan in fuel savings alone, not to mention saving time for truckers and emergency vehicles.

Brian said...

Oh man! You stole my thunder. I was planning on doing a post just like this.

As for some of the comments, a hand up is one thing, or debt done properly even, but $30B? If your a conservative, it's a disaster. If your a Conservative, you just handed the Liberals the argument that you, not they, can't be trusted with the finances. The old (and factually bad) Brian Mulroney ran up a pile of debt, Paul Martin got us out of it argument is given serious ammunition, regardless of what the coalition of the tilling would have done.

Long run, better to have handed the reigns to the coalition, and fought them in the next election based on their record of spend! Spend!! SPEND!!! Instead, Harper is doing exactly what they want anyway, and will now have to run on his record of spend! Spend!! SPEND!!!

It's a win win for Layton, Igantieff et al. A lose-lose for sensible people everywhere.

Anonymous said...

Ralph Klein never ran a deficit. He said we had to have our fiscal house in order. Harper should talk to Klein.

Anonymous said...

Ralph Klein never had the kind of problems we face today.

Wayne said...

Beg to differ about Klein' problem.

When he became Premier, unemployment in Alberta was running at close to 10%. Interest rates were still in double digits. Oil was about $10.00 per barrel. Activity in the oil industry was very low. Many of the rigs and equipment that had been here before the NEP was put in had gone to the states and never returned.

Getty had been running a debt of $2 billion of more, comparable to a $20 - $30 billion deficit in Canada. (this was in the 1980's; what would this be in today's dollars?)Canada had no money for equalization, although 'the have nots' still received their stipend.

Klein reduced costs across the board, starting with the MLA's themselves, and we were back in surplus in about 3 years.

The people were behind Klein. It was a much less fractured populous. I don't know that Canada has that kind of fortitude as a whole, and I certainly have doubts about the guts of any politician on any side to test them.