Good question

I don’t agree with the rest of this Silver Donald Cameron column any more than I agree with the rest of his columns – his comments on the Nova Scotia provincial debt suggest that he doesn’t understand this “compound interest” thing – but I would like to see the Prime Minister answer this one:

Ah yes, Bob Rae, the Ogre of Ontario. As Rae took office in 1990, Ontario was already heading into recession and projecting a $700 million deficit. Rae tried to blunt the recession’s impact using even larger deficits. He failed. But if recession-fighting deficits were bad policy then, why are the federal Tories embracing them now?

Damian P.
Update: oh, sweet mother of God

A former Ontario NDP finance minister lambasted for running a deficit to fight the recession in 1991 has given a thumbs-up to a Conservative federal deficit budget authored by a disciple of the “Common Sense Revolution.”
Floyd Laughren told on Wednesday that he thinks the budget of federal Finance Minister Jim Flaherty is “on the right track.

Via Skippy.

3 thoughts on “Good question

  1. I got one word for the Tories decision – Obama. Yes, the fact that the USA is doing it meant that the media jumped the bandwagon back in Nov and Dec. Due to the call for “stimulus” in the media, and by and large by the opposition, the CPC has done something that they don’t like, but know they must do to be seen as “cooperating” with the opposition.
    I will invoke the memory of Joe Clark and his budget at this point. I think Joe’s problem is that he tried to do what was “right” and told the people the truth… we all know what happened then. Trudeau told the people what they wanted to hear, got elected, and then screwed us even farther than Joe Clark planned to on the 18 cent a gallon tax. In fact, had Joe Clark been able to put a good budget together perhaps we could have avoided Trudeau’s National Energy Program! In the fall of that government I blame the NDP the most as had they supported the PCs in exchange for some concessions they would have had more influence than they ever had. As it was Ed Broadbent sided with the Liberal’s and in the following election the NDP actually lost seats, and the rest is history.
    By all rights the budget should be balanced with cuts in spending to make up for shortfalls in income from taxes, but had that been tried they would have been crucified in the media, by the opposition, and by most Canadians that follow the lead of the previous mentions “experts”. In fact Jack! Layton didn’t even have to see the socialist budget to know it didn’t go far enough to save the poor folks, the down trodden, the disenfranchised!
    Yes, the CPC is doing what most politicians do when they realize that to get elected they must, to some extent, pander to the electorate. The only good things in the budget are the temporary nature of some of the incentives. Another good thing is that it is a 5 year plan with another budget due in one year, and if there are enough changes in the year to come they can change the direction of the next budget. And if there is an election who knows what will happen.

  2. In november at the G20 summit Stephen Harper and all of the other leaders agreed to stumulate their economy by 2% of GDP. This budget is 1.9% of GDP.
    It is likely that had the CP had a majority this budget would have had less spending and more tax cuts, but still would have met the committment for 2%.

  3. *But if recession-fighting deficits were bad policy then, why are the federal Tories embracing them now?*
    oh, for the love of god, do we have to go over and over this?
    Because Rae’s Liberal party had a gun at harper’s head, with a bullet named `coalition’

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