Harper reverses course on economic stimulus

8 posts / 0 new

Thu, 2008-12-18 19:53

Doug

The Harper government plans to run deep deficits totalling up to $30-billion in an effort to pump enough cash into the economy to lift Canada out of a painful recession, the Canadian Press has learned.

A senior government official said deficits totalling $20-billion to $30-billion will be “short term,” but wouldn't give a specific time frame.

The estimate is more than double the projections contained in a Finance Department document released at the finance ministers meeting in Saskatchewan.

http://www.theglobeandmail.com/servlet/story/RTGAM.20081218.wdeficit1218/BNStory/politics/home

Good news for the country, but it probably leaves the coalition without a leg to stand on.

Thu, 2008-12-18 20:08

Brian White

But where is he directing the money? Towards pay equity measures? towards new shock troopers to break strikes? A stimulus from harper is probably akin to a tazer discharge for the weaker sections of the economy.

Doug wrote:
The Harper government plans to run deep deficits totalling up to $30-billion in an effort to pump enough cash into the economy to lift Canada out of a painful recession, the Canadian Press has learned.

A senior government official said deficits totalling $20-billion to $30-billion will be “short term,” but wouldn't give a specific time frame.

The estimate is more than double the projections contained in a Finance Department document released at the finance ministers meeting in Saskatchewan.

http://www.theglobeandmail.com/servlet/story/RTGAM.20081218.wdeficit1218/BNStory/politics/home

Good news for the country, but it probably leaves the coalition without a leg to stand on.

Thu, 2008-12-18 20:19

George Victor

"Good news for the country, but it probably leaves the coalition without a leg to stand on."

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Except to say that that was the leg the former coalition was standing on a couple of weeks back.

And to say that it is all proof that "economist" Harper should be ashamed and should find other work.

And to say that Flaherty is obviously saying only what he's allowed by the puppet-master.

Etc., etc......

But don't expect empire lite Iggy to be saying those things. Such thoughts are going to be called counterproductive in the face of the need for all to row together.

Thu, 2008-12-18 20:22

Doug

I suppose there could be a kind of Conservative stimulus package that would be unacceptable, containing permanent tax cuts, unnecessary military spending and a lack of environmental initiatives. Unacceptable or not, I wouldn't be surprised if the Liberals have done a deal to support it in recent days.

Thu, 2008-12-18 21:15

ceti

I'm not a fan of debts as far as the eyes can see. In this case, while a certain amount of deficit spending is unavoidable, the size of the deficit has been exacerbated by the same Bush league factors as the US -- unwise tax cuts and ballooning military spending.

Harper and Flaherty should not be let off so easily, even if you believe in Keynesian stimuli.

Thu, 2008-12-18 22:31

Frustrated Mess Frustrated Mess's picture

Well at least Canada's Oligarchy has now been elevated from "behind the curtain" to "economic advisors". What do you bet they advise Flaherty to "cut taxes, red tape, regulation, and stick it real fucking hard hard to labour...er, we mean raise productivity levels, and introduce labour flexibility"?

Sat, 2008-12-20 11:13

Boom Boom

I don't know what the heck to make of this:

Dobbs on economic conditions: "Anyone paying attention is concerned and worried, but are you scared? Are you afraid? No. That's un-American."

excerpt:

DOBBS: Well, you know, we're all concerned. We're all worried. Anyone paying attention is concerned and worried, but are you scared? Are you afraid? No. That's un-American. And, you know what? If there -- to sit there and say as, you know -- and they're Canadians, I understand that, and Stephen Harper's a Canadian -- but you know, Canada didn't get to be a great country by, you know, whining about it. I'm glad he chose to say, "I'm worried about the Canadian economy." Now, asked whether a recession -- a depression is possible, I'm not so pleased with Stephen Harper's answer.

I read the whole article but either I'm brain dead today (possible) or it simply doesn't make any sense.

Sat, 2008-12-20 16:25

Fidel

What happened to the "economic fundamentals are sound" and all that baloney just a few months ago? It sounds like the Harpers arent sure whether to shit their pants or run in circles.

The Harpers will run deficits now, and it's because that's what the 62% majority says they should do - except they will be sending government welfare cheques in the mail to rich friends of the party and big time banksters. And they will claim that this is what Canadians want them to do, and even gave them a blank cheque for "Keynesian stimulus." It's the democracy gap.