Let’s spend, spend, spend our way out of recession!

Gerry Nicholls writes that this budget “makes me yearn for the days when we had relatively fiscally conservative leaders, like Jean Chretien.” I wish I could argue with that. (This guy’s gloating is surprisingly restrained, probably because his leader will likely vote for this spendthrift budget.)

After months of speculation, Finance Minister Jim Flaherty on Tuesday tabled a federal budget that is big on income tax cuts and even bigger on deficits.
Flaherty’s spending plan includes $40 billion in economic stimulus over the next two years in the form of infrastructure spending and tax cuts.
The budget comes at a massive cost — $85 billion in deficit over the next five years. The deficit in the 2009-2010 fiscal year will be a shade under $34 billion.
The budget is remarkably different than any other one proposed by the Conservatives under Prime Minister Stephen Harper — with massive government spending on everything from roads, social housing to the arts.
“We must do what it takes to keep our economy moving, and to protect Canadians in this extraordinary time,” Flaherty said. “Making new investments is more challenging in such a time; but it is also more necessary than ever.”
[…]
Both the NDP and the Bloc Quebecois have stated that they will be voting against the budget. In order for it to pass, the support of the Liberals is needed.
Liberal Leader Michael Ignatieff said that he will not make a decision immediately on whether to support his budget. He will meet with his caucus and is expected to announce his decision Wednesday. Pundits have noted that much of the budget does seem to meet the requirements for his support Ignatieff put forth over the last month.

I’ll give the last word to a CTV.ca commenter: “when times were tough in our family, we always went on a big spending spree. It’s always a joy writing bad cheques. Makes one feel all fuzzy and warm inside.”
Damian P.

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11 thoughts on “Let’s spend, spend, spend our way out of recession!

  1. Well, the CPC is only doing that the MSM and the majority of cattle, I mean Canadians, want them to do… that is spend our way to a better life. I cringe to think what the NDP/Bloc/Lib coalition would have spent?
    The answer though Lou is that the true conservatives are pragmatically pandering to the voter in the hopes of convincing enough “left of centre” voters that they are not scary and should be given the keys to govern as they see fit.

  2. Dwayne has it right. Assuming we are able to spend all of the infrastructure money, then we have a big deficit for a couple of years. But, its a fraction of what we’d have if the opposition was calling the shots.

  3. I don’t know if this’ll work but I do know that the average Canadian simply shrugs and sees nothing different than the way they handle their own personal finances.
    For me, ‘If I don’t got it I don’t spend it’!
    I sure hope Joe Canuck is clear that the Gov’t is accumulating this debt in his/her name. ie there’s only one debtor, and you’re looking at him/her while you’re brushing your teeth.
    Gawd, I hope no one’s forgotten the aftermath of Trudeau’s (and Mulroney’s) profligacy…

  4. This budget doesn’t bother me. It bother’s me a lot more that Canadian’s did not give the Conservative’s a majority so that they could deal with the economic situation without the threat of the Coaltion Kook’s taking over. It amazes me that some people don’t want to acknowledge the political situation as it is, but and then again, some people just want to talk non stop about themselves and all their media exposure. Pencil me as unimpressed with what “what’s his face” has to say.
    As Dwayne mentioned above, How much would the deficit be if the Kooks had the cheque book? It’s only if we acknowledge how much higher it would be that we could know how conservative this “Conservative Budget” is.
    With all due respect, does anyone here believe the fellow who wrote the comment on CTV that the government of Canada is going to start writing bad cheques?
    Come on Damian, think about it.
    Respectively Yours,
    Blame Crash

  5. Yeah Dwayne. That sure is what we elected. “Leaders” who do what the MSM and the Opposition tell them to. Hooboy, I’m so glad my first term CPC MP is going to stand on principles. . .oh, wait.
    I’m tired and angry and short-tempered. I blame Harper for this. I should send him a bill for my anger management. The way the bastards are spending money, maybe it’ll get covered.
    Fool me once. . .
    Cheers,
    lance

  6. If I had wanted a liberal budget I would have voted for the liberals. I do know one thing though, that is the last vote I give to the conservatives. I guess it turns out that Harper doesn’t have a backbone afterall. He just really likes being prime minister and will do whatever he has to to stay in power.

  7. I have a idea ! Let’s have a date with reality!
    Does anyone believe Harper has a mandate from the people of this country to enact a large “C” Conservative budget or policies. As much as I wish he had, it just isn’t the case. Even if he had a majority with 44% of the voters, he still wouldn’t have the moral right to shove my, and his political ideology in the faces of the other 56%. I hope that isn’t to hard for some of the “pouting posters” here to understand.
    It’s all about respecting the people wish’s.
    So this budget was all about compromising, and it was unquestionably the right thing to do.
    If you want a full blow Conservative revolution in this country, then step up to the plate and help make it happen. All it requires is the approval of the majority of Canadians, and that will take a lot of hard work to convince them to take a chance on it, and us.

  8. Well Harper obviously sold out his base because he was deathly afraid that the opposition would defeat a Conservative budget and send Canadians to the polls for another election.
    That would be the election none of the opposition parties can afford and the first one of 2 that the conservatives could afford to fight.
    So why did Harper capitulate? Because the MSM has given the opposition permission to bastardize the intent of our Parliamentary system, and was going to happily allow them to install themselves as government if Harper produced anything that resembled a conservative budget.
    A coalition government that could not be removed from power no matter what they did.
    No thanks. i’ll take Harper eating some crow and keeping the treacherous and treasous bastards hands off the wheel.
    I’d be curious to know how much they throttled back the government revenues part of the budget.
    My feeling is that the economic “crisis” has been overblown to help the opposition.
    While we are facing a slowdown, perhaps Flaherty will have used the doom and gloom media reports to lowball the revenue side of the budget.
    So if the economy remains reasonably fit and if oil recovers to 50+ per barrel, I would not be surprised to see tax revenues far excede what has been forcast by Flaherty.
    Every time conservatives get up in arms that Harper has gone too far, he ends up coming out on the winning end. This is another of those times.

  9. http://www.barrelstrength.com/2009/01/28/definition-of-a-genius/
    Damian Penny states on his blog:
    Gerry Nicholls writes that this budget “makes me yearn for the days when we had relatively fiscally conservative leaders, like Jean Chretien.” I wish I could argue with that.
    Please allow your correspondent to make a feeble attempt to argue this. There is an old saying in the financial markets: definition of a financial genius is a bull market. When “fiscally conservative leaders” like Jean Chretien were balancing the budget and creating surpluses, the world economy was in a boom. That is why governments worldwide, all of a sudden became prudent economic managers. Better to be lucky than good and never confuse a bull market with brains.

  10. There’s only one aspect that matters in cranking up the economy: the consumer. If the consumer is happy and has money to spend, he will go out and buy stuff, thus keeping companies and their employees going.
    Canadian families lose 45% of their income to taxes. Taxes now account for the number-one expense item for families in this country. Yes, ahead of the bare necessities of life, such as food, clothing and shelter. I would actually argue that this is a gross violation of basic human rights.
    As a result, our productivity has been down in this silly country forever, and Canadians vegetate in a quasi-recessionary state. That we now actually have a real recession hardly matters. Most Canadians don’t feel any different.
    Obama hands Americans real tax cuts (up to $1,000), and about 47% of Americans will end up paying no tax at all. Yet Obama is called the “socialist”. Gee, I wonder what that makes Harper, then.
    Forget about deficit spending, infrastructure projects and bailouts. Even if we pumped $500 billion into Ontario’s auto industry, the carmakers’ lots would still be full of vehicles no one wants to buy. Why? Because the consumer doesn’t have any spending money left over, thanks to the taxman.
    Here’s what I would have loved to see on Jan. 27:
    A federal flat tax of 15% up to $80,000 and 25% above $80,000, with the personal exemption ranging from $20,000 to $25,000.

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