Analysts on Canada's budget: ‘Deficit paranoia is mind-bogglingly stupid’

[mentalfloss]

Justin Trudeau promises budget holds ‘historic’ investments for indigenous peoples

Justin Trudeau promises budget holds ‘historic’ investments for indigenous peoples

OTTAWA—Prime Minister Justin Trudeau is promising his government’s first budget will deliver “historic” investments for Canada’s indigenous peoples, help for the middle class and make good on election pledges such as improvements to employment insurance.

NDP Leader Thomas Mulcair pressed Trudeau whether Tuesday’s budget would deliver new funding for First Nations’ health, water and education.

“First Nations children across the country are living in crisis because the federal government does not provide them with the same resources other Canadian kids get,” Mulcair said Monday in the Commons.

But Trudeau replied that the government intends to make good on its promise to make vulnerable communities a priority.

http://m.thestar.com/#/article/news...toric-investments-for-indigenous-peoples.html

 

[captain morgan]

Re: Justin Trudeau promises budget holds ‘historic’ investments for indigenous people

I recall that Justine promised to maintain the deficit within $10 billion during the election.... Looks like he's at around $30 billion and counting.

Guess that math was never his strong suit, but then again, budgets balance themselves

 

[DaSleeper]

Re: Justin Trudeau promises budget holds ‘historic’ investments for indigenous people

https://imgflip.com/memegenerator

 

[Ron in Regina]

Re: Justin Trudeau promises budget holds ‘historic’ investments for indigenous people

I just googled, "deficit selfie" and.....well, try it yourselves....funny.

 

[captain morgan]

Re: Justin Trudeau promises budget holds ‘historic’ investments for indigenous people

Good call Ron

 

[mentalfloss]

Re: Justin Trudeau promises budget holds ‘historic’ investments for indigenous people

Still with the selfies line.

The well has certainly run dry for the Cons.

 

[mentalfloss]

Analysts on Canada's budget: ‘Deficit paranoia is mind-bogglingly stupid’

Awaiting the budget
Canada’s new government is expected this week to unveil a stimulus budget with a deficit in the area of $30-billion.

That would count as bad news for some who crave balance. But for others, it may not be enough given the sluggish economy and unemployment that refuses to drop below 7 per cent.

Finance Minister Bill Morneau has already adjusted the outlook amid the oil shock, projecting a deficit of $18.4-billion in the 2016-17 fiscal year, not including the Liberal government’s promised spending initiative. When you add it all together, it’s looking like about $30-billion.

Besides infrastructure spending, Canadians can expect to see a new child benefit, changes to the jobless benefits program and a tweak to tax rules governing stock options.

Economists aren’t waving red flags over what they expect to see, and some observers would like even greater stimulus spending than Mr. Morneau will probably unveil.

They’re not suggesting throwing caution to the wind, but they do note that Canada is able to handle what’s expected.

Here’s what some observers say:

“Deficit paranoia is mind-bogglingly stupid. … Even a $50-billion deficit wouldn’t endanger the long-term outlook for the public finances, however. The bigger risk is that if fiscal policy doesn’t take up the slack, the economy could slip into a prolonged downturn. It would be a tragedy if, after watching Europe nearly destroy itself, Canada made the same mistake.” Paul Ashworth, Capital Economics

“Expect the outcome of the next budget on March 22 to show cumulative deficits over the next two years well above $50-billion (roughly 1.3 per cent of GDP) if the stimulus promised during the election campaign is implemented. That should hardly scare off foreign investors. Even with such deficits, the debt-to-GDP ratio should remain low relative to other OECD economies. In our view the government has the flexibility to provide fiscal stimulus to a Canadian economy that badly needs it.” Marc Pinsonneault, National Bank Financial

“Timely, targeted and temporary fiscal initiatives will provide a much-needed filip for the economy over the near term while potentially also improving long-term growth prospects. … In periods of weak growth, fiscal deficits have a role to play in lessening the damage to the economy. However, prudent fiscal management requires that initiatives provide clear benefit to growth in the short and long term. As well, the funds spent will need to eventually be repaid with the upcoming budget expected to provide a game plan as to how the federal government plans to return to fiscal balance.” Craig Wright and Laura Cooper, Royal Bank of Canada

“Our Canadian [economic growth] forecast incorporates our recommendation for federal fiscal stimulus of $20-billion, equivalent to 1 per cent of GDP, implemented during the second half of 2016 and the first half of 2017. This stimulus would be over and above the deficit resulting from weaker economic conditions. … The stimulus should be designed to: deliver a rapid economic impact; raise Canada’s economic capacity and thus our longer-term growth prospects; and, facilitate adjustments in the provinces most affected by weak commodity prices.” Aron Gampel, Bank of Nova Scotia

Analysts on Canada's budget: ‘Deficit paranoia is mind-bogglingly stupid’ - The Globe and Mail

 

[MHz]

Re: Justin Trudeau promises budget holds ‘historic’ investments for indigenous people

Selfies is the only ammo they have ever had, just like Trumps hair is the main topic in the US, some fools just never know when to quit.
Canada already voted in our version of Donald Trump, be interesting one Trump is America's newest dictator.

 

[captain morgan]

Re: Justin Trudeau promises budget holds ‘historic’ investments for indigenous people

Still with the selfies line.

The well has certainly run dry for the Cons.

Sunny Ways

 

[Tecumsehsbones]

Re: Justin Trudeau promises budget holds ‘historic’ investments for indigenous people

I recall that Justine promised to maintain the deficit within $10 billion during the election.... Looks like he's at around $30 billion and counting.

Guess that math was never his strong suit, but then again, budgets balance themselves

Yer just jealous cuz we're gonna get free stuff.

 

[captain morgan]

Re: Justin Trudeau promises budget holds ‘historic’ investments for indigenous people

Yer just jealous cuz we're gonna get free stuff.

Sadly, you'll be in for an unpleasant surprise on that

 

[bobnoorduyn]

Harper was goaded into deficit spending in the name of stimulus when his government was a minority, then was roundly pilloried for it when the expected result went unattained. Funny how ill winds of public opinion turn favourable depending on whose sails are hoisted. How has likewise John Maynard Keynes' model deficit spending worked out the last three, four, or umpteen times it has been tried? What was it Einstein said about attempting the same thing over and over again and expecting a different result?

 

[Locutus]

le nice comment:

Then why did the Liberals vilify Conservatives for running such a small deficit las year during most of the campaign? Then they pivot, say a deficit needed because we were in a recession (not), now it's fine to have a 30 billion dollar deficit. Uh? And we are supposed to trust them? Please spare me the economists said argument. It makes you look foolish.

anyway, as a Canadian who carries no debt, I will continue to support balanced budgets and not ones designed to baffle with bullsh!t and meet the needs of the whiny entitled millennial hive-mind.

have a nice day.

Vassy Kapelos Verified account ‏@VassyKapelos

Budget deficits - platform vs. budget in a graphic #cdnpoli #budget2016

MSM + gerry butts' crew + LIV's = coodaytah

 

[Johnnny]

It says on CTV that they are officially abandoning trying to balance the books.. Broken election promise?

 

[Durry]

Nothing about getting AB Oil to Tidewater.

It's very clear that the Libs want to kill the Oil producing industry in a slow and steady way.

 

[Locutus]

Schtev ‏@schtev69

Wow! #Liberal mouth piece CBC & their lefty viewers DON'T like this #Budget2016 #cdnpoli #bcpoli #vanpoli

 

[Curious Cdn]

Anyone else on here old enough to remember Edgar Benson?

 

[IdRatherBeSkiing]

No more income splitting for couples with kids (wtf? Why the penalty?) No child fitness tax credit and no art credit (never even knew there was one). So hefty tax increases for the middle class disguised as cancelled benefits but spending on lots of losers. Incompetent boobs but we already knew that. I think tax increases should only apply to the stupid idiots that voted for this loser.

 

[Scooby]

Re: Justin Trudeau promises budget holds ‘historic’ investments for indigenous people

Yer just jealous cuz we're gonna get free stuff.

There is nothing more toxic for people as giving them free stuff.

 

[Curious Cdn]

Re: Justin Trudeau promises budget holds ‘historic’ investments for indigenous people

Yer just jealous cuz we're gonna get free stuff.

After they flash up the printing presses and run them full speed for an extra $20 billion, your "free stuff" will be as valuable as roubles ... and those really hurt your bum.