Two after and Harper changes tune on deficits
- Thread starter Avro
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Good day to you S.G.,
You really are not that surprised, are you.
regards
scratch
Oh, I think a deficit could be necessary if things get really tough and stay that way for a couple of years.....but first I'd dump all arts funding and funding for special interest groups.....and probably re-instate 1% of the GST.........
Deficit spending in recession should be used to build infrastructure........
Deficit spending in recession should be used to build infrastructure........
A very good point.
Recessions come and go in our country, and they probably will for the foreseeable future.
As far as deficits are concerned, governments may have little they can do about them during this economic period.Controlling spending helps, but as long as government spending is domestic, the cash circulation should be welcomed.
The bigger issue is the one you've pointed out, that being the redevelopment of our infrastructure, infrastructure being defined as both public assets and industrial strategic assets which we need to preserve to go through the necessary transitions, such as our industrial response to off oil strategies, etc.
We are tremendous bioproduct producers, from agriculture to forestry and this as a country is our strength. We need to exploit this more effectively as well as to use out bio assets to their higher market values.
Just some thoughts for discussion (I hope)
I fully agree; most Canadians are too stupid to change it. I've met full-grown Canadian adults vote for party X because their grand-daddy voted for party X. For crying out loud, voting has degenerated into a friggin tradition!
Hmmm... and who was criticizing Ms. May for calling Canadians stupid?
I agree... and I'd also cut out $1.83 given to a party for each vote it receives. Besides, independents don't get it, so why should parties?
I'd also change language requirements for public servants, police and soldiers. To spend all of that money to try to teach Canada's second official language to them is too expensive.
According to one sight, it runs into fourty billion dollars per year. Justgoogle Canadians for Language Fairness. I don't agree with much of what they stand for, but there is one point on which I do agree. Stop compulsory learning of Canada's official language. It's too difficult and thus too expensive for most.
Elections themselves could be streamlined, and we ought to promote more international cooperation so as to cut bureaucracy in the area of international relations too.
Infrastructure could include education and training. People are in fact a part of this infrastructure if we think in terms of cybernetics, including pedagogical cybernetics.
As for deficit spending, it should be a last option. I'd do the following first:
1. Lower interest rates.
2. If that's not enough, AND we experience deflation, print a certain amount of money. Bear in mind, though, that once the recession is over, we'll then have to either increase taxes or decrease spending so as to pull that money out again to counter inflation. But I still think that's preferable to deficit spendin, since with deficit spending we would still have to pay it back plus interest after the recesion. At lest through printing money, we don't need to pay interest on the money we'd then have take out of circulation after the recession.
As for deficit spending, it should be a last option. I'd do the following first:
1. Lower interest rates.
2. If that's not enough, AND we experience deflation, print a certain amount of money. Bear in mind, though, that once the recession is over, we'll then have to either increase taxes or decrease spending so as to pull that money out again to counter inflation. But I still think that's preferable to deficit spendin, since with deficit spending we would still have to pay it back plus interest after the recesion. At lest through printing money, we don't need to pay interest on the money we'd then have take out of circulation after the recession.
Full Article Here: Flaherty warns against balancing budget 'at any price'
Flaherty said financial projections are now tougher than ever for Ottawa to make, and Canadians had better get used to uncertain forecasts.
"We will do what we can, despite challenging economic circumstances, to keep the budget balanced," Flaherty told a luncheon business crowd in Toronto. "But we recognize that we work for Canadian families, not fiscal forecasters. What we will never do is engineer a surplus at any price, because that price would ultimately be paid by Canadian families."
He said that Canadians "quite rightly" find deficits "unacceptable," and his government would not return to the days of annual deficits in the tens of billions of dollar, as was the case in the 1970s and 1980s.
But also unacceptable," he added, "is a devotion to surpluses simply for the sake of saying you achieved them. That view refuses to take into account the long-term damage that can result from misguided attempts to balance the books during a historic global downturn."
"Without question, these are uncertain economic times, and after the extraordinary developments that have taken place in a matter of weeks, no one can reliably predict what will happen next. This is the new reality Canada faces today."
To combat what is now expected to be lower-than-expected tax revenue, Flaherty said his government is prepared to "redouble" efforts to find internal savings within the federal public sector.
"Departments will have what they need to fund essential programs and services - and no more," he vowed.
Moreover, he said a review of government spending would also extend to Crown corporations and agencies, which indicates the Conservatives are toying with the idea of selling assets such as Atomic Energy Canada Ltd.
"We will ensure that original purpose for setting up each corporate entity is still relevant in today's world, and that dollars are being spent wisely," Flaherty said of the Crown agency review.
Flaherty said financial projections are now tougher than ever for Ottawa to make, and Canadians had better get used to uncertain forecasts.
"We will do what we can, despite challenging economic circumstances, to keep the budget balanced," Flaherty told a luncheon business crowd in Toronto. "But we recognize that we work for Canadian families, not fiscal forecasters. What we will never do is engineer a surplus at any price, because that price would ultimately be paid by Canadian families."
He said that Canadians "quite rightly" find deficits "unacceptable," and his government would not return to the days of annual deficits in the tens of billions of dollar, as was the case in the 1970s and 1980s.
But also unacceptable," he added, "is a devotion to surpluses simply for the sake of saying you achieved them. That view refuses to take into account the long-term damage that can result from misguided attempts to balance the books during a historic global downturn."
"Without question, these are uncertain economic times, and after the extraordinary developments that have taken place in a matter of weeks, no one can reliably predict what will happen next. This is the new reality Canada faces today."
To combat what is now expected to be lower-than-expected tax revenue, Flaherty said his government is prepared to "redouble" efforts to find internal savings within the federal public sector.
"Departments will have what they need to fund essential programs and services - and no more," he vowed.
Moreover, he said a review of government spending would also extend to Crown corporations and agencies, which indicates the Conservatives are toying with the idea of selling assets such as Atomic Energy Canada Ltd.
"We will ensure that original purpose for setting up each corporate entity is still relevant in today's world, and that dollars are being spent wisely," Flaherty said of the Crown agency review.
Ron good day to you, Flaherty was talking this morning to reporters, explaining and preparing the coming budgets. He stated that the Conservatives will not adopt Martin’s method of a balanced budget. What is really odd here is the economic platform the Conservatives are looking to implement is the one the Liberals were proposing…………Harper was telling Canadians that Dion and the Liberals were out to lunch…….with such proposal…..
Here is my political prediction…..
The Conservatives are locked in a minority position today, 1 ½ years down the road the economic doom and gloom will have hit a pick by that time, the Conservatives will be running a deficit, the voter puissance will be thin at that time, and looking at the Grits they will get a proper leader with the right man on the helm and then, the Liberals are coming ………………………
It was lucky thing for the Grits that the Conservatives got in this time although a slight embracement of loosing few seats. By the time the 1 ½ year or maybe 2 years roll around the Grids will be more then ready to lead Canada to prosperity once again……..
Soc, your crystal ball is as cracked as you are. I'd like to know what the liberals are coming with... nothing more than a wet noodle...
Good Day right back at you! I still think it'll be 2012 before the next Federal Election, but
we're all entitled to our opinions. I figure the election will take place a few months before
the end of the Mayan calendar. The Con's minority will act as a majority until then. Again,
time will tell, and we can both look back at this thread and hopefully laugh in 2012...assuming
the world doesn't end on the winter solstice that year. Either way, I'm looking forward to an
interesting ride.