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

[mentalfloss]

Only caring about dem elites..

Federal budget gives low-income families a break – with fewer strings - The Globe and Mail

 

[taxslave]

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

I guess you never heard that it was that dastardly Harper who left a huge mess for Justin to clean up!

Not from any factual source.

That's right. Nobody works or pays taxes, here. That "most of you" in your little mind comprises 15% of the country. The rest of us just coast along. "I wonder what I can take from Alberta TODAY?"

Delusional.

Good. Admitting it is the first step. Now seek treatment.

Only caring about dem elites..

Federal budget gives low-income families a break – with fewer strings - The Globe and Mail

And the working people with no kids, what do they get? Besides higher taxes?

Actually the reason fro the continued deficits under Harper were not due to deliberate "deficit spending." They were due to continued tax cuts especially to the very wealthy and large corporations. This robbed his government of revenue, making it impossible to balance the budget.

As for Keynes, very seldom has any government followed his theory. Keynes stated that in bad times governments must increase spending, but also that in good times governments should decrease spending. Historically governments have been very good at increasing spending in hard times but very poor at reining it back in good times, essentially following only half of Keynes' teachings.



I can think of a few. World War II would have been impossible for the Allies to win without deficit spending. Prior to that Herbert Hoover's decision to cut back spending at the beginning of the Great Depression proved catastrophic.

On a personal level almost every Canadian engages in deficit spending. That how they buy things like cars and houses. Governments do the same so that citizens can enjoy the benefits of schools, hospitals, libraries, roads and so on without having to wait decades for them.

Buying a house isn't really deficit spending. All you are doing is committing to a specific dwelling for a specific period of time. On a personal level deficit spending is silly things like borrowing for a holiday.

 

[JLM]

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

Hopefully most working people with no kids aren't in dire financial straits.

Buying a house isn't really deficit spending. All you are doing is committing to a specific dwelling for a specific period of time. On a personal level deficit spending is silly things like borrowing for a holiday.

You've hit the nail right on the head. Many people can't distinguished between "needs" and "wants".

I think Rona Ambrose has hit the nail on the head with her characterization of the budget.................at least on three main points! Personally I think Canadians will find the going a little easier for awhile before we get walloped! Has Justin even considered rising interest rates in the near future?

 

[Retired_Can_Soldier]

Actually the reason fro the continued deficits under Harper were not due to deliberate "deficit spending." They were due to continued tax cuts especially to the very wealthy and large corporations. This robbed his government of revenue, making it impossible to balance the budget.

The Harper Government carried out deficit spending to bale out General Motors and was criticized by the very party that holds power.

As for Keynes, very seldom has any government followed his theory. Keynes stated that in bad times governments must increase spending, but also that in good times governments should decrease spending. Historically governments have been very good at increasing spending in hard times but very poor at reining it back in good times, essentially following only half of Keynes' teachings.

The problem here is that we have a government that is completely dysfunctional when it comes to managing the billions they already take from ordinary Canadians. If you were to tally all of the taxes already being extracted from you everyday and were to tally that against your earnings you would be aghast. Aside from personal income tax, psts, gsts, and the such, there are the hidden taxes, the eco taxes, health tax (in ontario) and on it goes.

These folks are handed a hell of a lot of money and they can't manage it. Governments left and right have consistently ignored Auditor General reports and spent millions on non essential endeavors that are about legacy, ego or lobby. I know we don't like to think that Lobby exists in Canada, but it does. The Insurance Lobby in Ontario is a great example.

I can think of a few. World War II would have been impossible for the Allies to win without deficit spending. Prior to that Herbert Hoover's decision to cut back spending at the beginning of the Great Depression proved catastrophic.

World War II was a different animal. Sadly, I think if we ever became engaged in such a war again, standing shoulder to shoulder would be a pretty tall order.

On a personal level almost every Canadian engages in deficit spending. That how they buy things like cars and houses. Governments do the same so that citizens can enjoy the benefits of schools, hospitals, libraries, roads and so on without having to wait decades for them.

There is no need to deficit spend at this level. This Prime Minister shouldn't have been given a majority. That is quite clear now. I would bet that it would be out on his ear if Canadians had not been so foolhardy in giving him a majority. I fear we will see a return to the economic downturn with skyrocketing interest rates due to high deficit and the average citizen who works and pays taxes will have to shoulder the burden.

And just so were clear, I am not against deficit spending, as long as it is necessary. What this government is doing is extremely irresponsible. We are not going to the bank to borrow for a mortgage, we are going to Money Mart to borrow money to buy things we don't necessarily need. In order to pay down deficits we need folks working in this country, this government seems completely oblivious to that fact.

 

[pgs]

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

Yup budget by the civil service for the civil service .

 

[mentalfloss]

The strategic vote paid off.

Liberals unveil spending as ‘champion of clean growth’ - The Globe and Mail

 

[captain morgan]

The strategic vote paid off.

Liberals unveil spending as ‘champion of clean growth’ - The Globe and Mail

Shame that the tech doesn't exist

 

[Jinentonix]

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

So when Turd-O was busy telling everyone he was gong to slay the deficit, he was being mind-bogglingly stupid? Thanks for confirming that. Apparently the idiots who voted for the "Deficit Slayer" are mind-bogglingly stupid as well.

 

[JLM]

So when Turd-O was busy telling everyone he was gong to slay the deficit, he was being mind-bogglingly stupid? Thanks for confirming that. Apparently the idiots who voted for the "Deficit Slayer" are mind-bogglingly stupid as well.

I think Trudeau is just experimenting, trying different things! I don't think any of his tactics are the result of any logical or scientific thought!

 

[IdRatherBeSkiing]

Shame that the tech doesn't exist

Shhhh Don't disrupt the dream. Bask in the glow of the shiny one. Perhaps you can even get a selfie with him.

 

[Jinentonix]

I think Trudeau is just experimenting, trying different things! I don't think any of his tactics are the result of any logical or scientific thought!

I call it "the spaghetti syndrome". When cooking spaghetti, one way of telling if it's done is toss a piece at a wall. If it sticks, it's ready.


That seems to be the Trudeau policy method. Throw stuff at a wall and hope something sticks.

 

[Locutus]

les nice nonflossed comments:

Clean growth doesn't exist. All this means is significant economic contraction. You can't grow an economy on higher taxes and less efficient energy sources. It's death by a 1000 cuts. Too bad the majority of our fellow Canadians don't read enough to understand this.

A projected 13 billion dollar deficit now goes to 30 billion. I will say your grandchildren won't be repaying it. This has now shifted to your great and great great grandchildren.

Trudeau's spending spree and his desire to play big shot on the world scene is going to be costly. However, 2019 will be the electorates chance to say enough is enough. Hopefully the Conservatives will come up with good leader.

 

[JLM]

I call it "the spaghetti syndrome". When cooking spaghetti, one way of telling if it's done is toss a piece at a wall. If it sticks, it's ready.


That seems to be the Trudeau policy method. Throw stuff at a wall and hope something sticks.

You might be onto something there! On second thought Trudeau is French not Italian!

 

[bobnoorduyn]

I think Trudeau is just experimenting, trying different things! I don't think any of his tactics are the result of any logical or scientific thought!

I love the story told by a friend and former SAS operative of his experience with experiments; he and 3 classmates, after being instructed on the basics of the "hypothetical" manufacture of nitro glycerine proceeded to their local chemist to procure the necessary ingredients after class, which of course were gladly handed over after payment. They bored a hole into 4 trees and stuffed a vial of their concoction into each hole. Deciding that to set each off individually might attract attention before they could set off another, they decided to set them off together, expecting a rather loud bang. Well, rather than a rather loud bang, they sent the trees, in his words, "into bloody orbit". The news the next day reported "Suspected IRA Terrorists Testing Explosives in North London Park", not knowing it was just 4 14 year old prats. Experimentation can be enlightening, but I feel we have a 14 year old prat with a lighter and a fuse at the helm.

 

[JLM]

I love the story told by a friend and former SAS operative of his experience with experiments; he and 3 classmates, after being instructed on the basics of the "hypothetical" manufacture of nitro glycerine proceeded to their local chemist to procure the necessary ingredients after class, which of course were gladly handed over after payment. They bored a hole into 4 trees and stuffed a vial of their concoction into each hole. Deciding that to set each off individually might attract attention before they could set off another, they decided to set them off together, expecting a rather loud bang. Well, rather than a rather loud bang, they sent the trees, in his words, "into bloody orbit". The news the next day reported "Suspected IRA Terrorists Testing Explosives in North London Park", not knowing it was just 4 14 year old prats. Experimentation can be enlightening, but I feel we have a 14 year old prat with a lighter and a fuse at the helm.

Oooooooooooh that bad eh? Hope he can handle a sharp 'learning curve'!

 

[Bar Sinister]

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

Buying a house isn't really deficit spending. All you are doing is committing to a specific dwelling for a specific period of time. On a personal level deficit spending is silly things like borrowing for a holiday.

Or buying a car or an appliance or a college education or any of the many other things that would take years to save up for. And your definition of buying a house is more suited to renting. Regardless of what you say, getting the bank to advance you several hundred thousand dollars it will take decades to repay is definitely deficit spending.

I just find it hypocritical that when businesses to into debt to finance expansion it is called investment; but when government does it to finance infrastructure or services it is called deficit spending.

 

[IdRatherBeSkiing]

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

Or buying a car or an appliance or a college education or any of the many other things that would take years to save up for. And your definition of buying a house is more suited to renting. Regardless of what you say, getting the bank to advance you several hundred thousand dollars it will take decades to repay is definitely deficit spending.

I just find it hypocritical that when businesses to into debt to finance expansion it is called investment; but when government does it to finance infrastructure or services it is called deficit spending.

They did not go $30 billion into debt to finance infrastructure. There are the nice payouts to Telefilm Canada, the CBC, the Native American Chiefs, fictional energy sources, and other organizations that no doubt have made nice donations to the Lieberal Party of Canada. I think the infrastructure spending is only a couple of billion. Not to mention the increased tax revenue which he is also spending. If he was just throwing money at infrastructure, I would support that 100%. If they are going to increase my (middle class taxpayer) tax burden, at least make it something worthwhile or would in some fashion help all of us.

 

[mentalfloss]

They promised $10 billion in infrastructure and paid out $11 billion.

They have an $8 Billion contingency fund.

 

[Locutus]

a billion ain't nothin' eh kid? :lol:

 

[damngrumpy]

First of all people voted for a platform that included what he is doing.
As for Alberta oil getting to the coast, I for one support the line only
until we have a refinery that sends only processed product anywhere.
I support east west but not keystone and LNG line north NO. Not as
long as Enbridge is in charge of it