Canada in deficit... NOW

58 posts / 0 new
Last post
Fidel

But people will tell us about the lack of government created money in circulation since 1991, that things are better now. A retired guvmint guy in Ottawa handed me a rejoinder with a clever question: But how would kids today possibly afford to finance purchases of sports cars and post secondary education without access to credit? I answered him with, sure they need to borrow money with interest owed now more than ever before. Because education isnt subsidized like it used to be. And the car companies are doing really well with sports cars and guzzloline hogs. He shook his head at me believe it or no. That was just before the meltdown.

Economic historian Nial Ferguson says that taking on more debt during a debt crisis is not good. The Yanks have no real plan to pay down their whopping national debt or sum total public and private debts other than more war based on economics. Er, something like that. I think taking on debt with a window to economic expansion some time down the road was doable in more Keynesian times. There are some saying that the recovery will be a jobless one. These people in Ottawa have no real plan for greening the economy that I can identify. More indebtedbess seems to be the only thing they are sure of. The Obama plan is buy American and so is Steve Harper's apparently.

NorthReport

Part of the mainstream media's job is to confuse and bamboozle.

Somewhere along the way I figured out that rich people lend money, and poor people borrow money.

And I agree that government deficit financing in not the way to go. Manage finances properly, be frugal with other people's money, put some aside for a rainy day, and when we have have a slowdown, use some of the nest egg, and increase taxes in a progressive way, but do not go into debt. 

thorin_bane

That's rich Stephen. Pun not intended. During the Rae era and just about every other time, the right have said no to deficits, pounded on the podium and stirred up the resentment to any government that did so. Usually to retain social infrastructure and jobs.  Meanwhile once they start running deificits from giving out corporate tax cuts(hidden with cut to upper middle class) to corporate welfare in the from of needless militray adventure it is OK.

Sure good to know you are educating the youth. Goose meet gander. I guess it is too much to ask that tax money actually goes to something concrete that will help people in society instead of a tax cut for the already wealthy or something as destructive as arms that are ONLY meant to kill people. No wealth generation their...though that does inflate GDP numbers don't it. Nothing is better for the economy than a disaster. AT least thats what the GDP says in any case.

Lard Tunderin Jeezus Lard Tunderin Jeezus's picture

Quote:
The Obama plan is buy American and so is Steve Harper's apparently.

Great line - consider it stolen.

madmax

Stephen Gordon wrote:

So what if the federal government is running a defict? We're in a recession. That's what happens.

 I expect far better from your posts.   Imagine the size of the deficit if the CPC hadn't offered huge, monsterous massive tax cuts, over 50 Billion $ to companies that are packing up and leaving and using the xtra capital for there new investments in Mexico or China, while tossing out 100s of thousands of employees and closing down viable operations.

Give money away and provide tax cuts all you want.  Fact is, with the technology that has been bled out of this country in the past 4 years and the massive free for all in mergers and aquisitions, there is no doubt that Canada has been exploited to the fullest, while receiving SFA in return. 

The effort to create a jobless recovery and maintain the viability of Global Corporations on the backs on the Canadian Taxpayer is a disaster in the making. 

The CPC can build all the hockey rinks in Canada under the guise of stimulus spending and populist approval, but at the end of the day, the jig will be up.

We will have nice arenas, few jobs, and low pay and that is why the CPC is pressing hard to suck the remaining blood out of the taxpayers by shoving the HST down the other provinces throat.

Obviously, the CPC/LPC robbery of EI is no longer on the table.

Running a deficit is not a sure fire cure for the economic reposition of this country as nothing more then a giant warehouse of cheap consumer goods.

 

janfromthebruce

"The CPC can build all the hockey rinks in Canada under the guise of stimulus spending and populist approval, but at the end of the day, the jig will be up."

And to add insult to injury, the cons with the support of the provinces wants to open up our bidding on our stim projects in municipalities so that US firms can bid on them. So they want to give our cookies away along with the jar, so to speak. Meanwhile the libs have remained silent on our Canadian "buy American" with our tax dollars.

thorin_bane

Don't think for a minute the provinces aren't also happy about their new winfall on all kinds of new products to tax. Plus they can share the blame or shift it to the feds. After our strike the jerk council members are now looking at privatizing, not just garbage but all non management jobs at city hall. I can't wait till eddie five fingers francis tries running for the cons against masse or comartin. I will be out in force to make sure this jerk has no job after E-day. He already made a bundle on the land he speculated on with his brother for the location of the new bridge...strange he happen to buy this land just 2 years before anyone knew exactly where the bridge was going to be and the cons overpaid for the expropriation cost to the city(i need to double check these facts however, but he does own the land parcel of the new bridge customs area, which he bought in the not to distant past..).

Pages