For someone paid to be optimistic, Finance Minister Jim Flaherty was remarkably sombre in last week's speech to the Canadian Club in Toronto, warning about the impact of financial uncertainty on an already shaky recovery. He concluded with a tried-and-true conservative analogy, suggesting that, in turbulent times, government should imitate households and live within their means.

During a crisis, the manager of a household's finances must "make difficult choices to put your family's finances on a structurally stronger footing," Mr. Flaherty said, suggesting that finance ministers do the same. "You figure out a way to restrain your spending and ... reduce your debt."

If only the unemployed weren't so reckless with our money.

In predicting a $50 billion deficit last week, Finance Minister Jim Flaherty was quick to centre-stage the role of the unemployed and his other favourite whipping boy -- the autoworkers -- in soaking up government funds and pushing us deeper into debt.

Flaherty seemed keen to deflect public wrath onto these ill-fated workers, clearly victims of the global economic meltdown triggered by Wall Street. Most of them have probably never even been to Wall Street, let alone flipped asset-backed securities inside hedge fund portfolios.

It is astonishing given all the commentary and news stories about the "sudden" $50 billion federal deficit there has not been a single story in the mainstream media that focuses on the principal explanation: the huge tax cuts made by the Liberals and Conservatives since 1995.

First it was former finance minister Paul Martin with his $100 billion income tax cut over five years starting in 2000. Then it was Jim Flaherty in 2007 with $60 billion over five years. Add to that the $12 billion lost each year by lowering the GST from seven per cent to five per cent and the $50 billion is no mystery. It was an inevitability whenever the next recession hit.