Cuts will drag on economy: report


mentalfloss
#1
Cuts will drag on economy: report

The Canadian economy could grow at a slower pace, and have 108,000 fewer jobs as the federal government cuts more than $5 billion in spending and eliminates the deficit by 2015, according to a report from Parliament's spending watchdog.

The economic and fiscal outlook from Parliamentary Budget Officer Kevin Page, released Wednesday morning, also predicts marginal savings from changing the age of eligibility for Old Age Security.

The Conservative government will cut $5.2 billion from operating spending over the next three years and eliminate 19,200 federal jobs as part of its plan to balance the budget.

Those cuts will allow the government to eliminate the deficit by 2015, just in time for the next federal election, and have a $10.8-billion surplus by the 2016-17 fiscal year - $3 billion more than the government is projecting.

That difference, the PBO argues, should give the government room to either increase spending or cut taxes.

The federal government and Page have clashed in the past over his projections, including over the controversial procurement of the F-35 fighter jet. His latest report was no different.

"Kevin Page has flagged the obvious - when you cut government spending and eliminate wasteful programs, the government does not need as many public-sector workers," said Mary Ann Dewey-Plante, a spokesperson for Finance Minister Jim Flaherty.

"We were clear in our budget document we were eliminating 12,000 positions - not the number Kevin Page has created."

Page's report predicts by 2014, real Gross Domestic Product - a measure of all goods and services produced by an economy - will be 0.4 per cent lower than would have been the case if the government didn't reduce spending.

The cuts also will mean employment will be 0.2 per cent lower by 2014, equivalent to 43,000 fewer jobs, the PBO said. By 2015, that could mean 108,000 fewer jobs in the economy as a whole, the report said.

Put another way, the unemployment rate is projected to be 7.9 per cent, rather than 7.5 per cent without any spending reductions, the PBO said.

Dewey-Plante said the government wasn't changing its plans because of Page's report. "Canada's leading economists have been very supportive of that plan, and we're committed to implementing it to ensure long-term jobs and growth for Canada,"she said.

Page is scheduled to speak to a Commons committee Thursday, after which he said he would answer questions.

A second report on government-spending cuts suggests estimates for savings should be taken with caution because decisions for program cuts could be reversed, and projections not met.

The PBO is recommending parliamentarians ask for more details about how cuts will occur and where jobs are being lost.

Cuts will drag on economy: report (external - login to view)
 
petros
+2
#2  Top Rated Post
Only 108,000?

We'll take your 108,000 in the west and raise you another 150,000.


This puppy still runs from the east to the west.


 
mentalfloss
#3
Losing over 50,000 jobs a year is nothing to scoff at.
 
JLM
No Party Affiliation
+1
#4
Quote: Originally Posted by mentalflossView Post

Losing over 50,000 jobs a year is nothing to scoff at.

Depends on whether they are "Dipper type" jobs.
 
petros
#5
Quote: Originally Posted by mentalflossView Post

Losing over 50,000 jobs a year is nothing to scoff at.

Lost where?
 
Cabbagesandking
No Party Affiliation
#6
Quote: Originally Posted by petrosView Post

Lost where?

Does it matter where? Or is Canada really as divided as the CPC wants it to be?
 
JLM
No Party Affiliation
#7
Quote: Originally Posted by GerryEView Post

Like the one you had.....still getting those pension checks?

What's your problem with the work I did? Don't you appreciate roads and bridges to drive on? Yeah, after over 35 years in the work force I'm still collecting those pensions cheques and hope to continue for another 20 years.
 
JLM
No Party Affiliation
+1
#8
Quote: Originally Posted by GerryEView Post

I have no problem with the work you did.

It's your hypocrisy I don't like.

It would be nice if all Canadians who did good work were able to dip into a pension like you.

I don't quite see where the hypocrisy comes in. I was given a chance to contribute to a pension and I did. I have absolutely no problem with ANY working person contributing to a pension!
 
JLM
No Party Affiliation
#9
Quote: Originally Posted by GerryEView Post

Whatever you say dipper.

I'm gald you have a pension and I hope other Canadians get that chance as well.

And YOU call me a hypocrite!
 
JLM
No Party Affiliation
+1
#10
Quote: Originally Posted by GerryEView Post

Just glad to see you support government pensions and perhaps that should spill over to the private sector once again.

And you don't support them? You will reject C.P.P. and O.A.S?
 
taxslave
No Party Affiliation
#11
Quote: Originally Posted by mentalflossView Post

Losing over 50,000 jobs a year is nothing to scoff at.

Not when they are government jobs. That is a cost savings as government does not produce anything it just takes money out of your pocket and redirects spending.
 
JLM
No Party Affiliation
#12
Quote: Originally Posted by taxslaveView Post

Not when they are government jobs. That is a cost savings as government does not produce anything it just takes money out of your pocket and redirects spending.

I agree 50%.
 
taxslave
No Party Affiliation
#13
Quote: Originally Posted by JLMView Post

I agree 50%.

OK a 100 000 would be better.
 

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