CTV Repoting a $40 Billion Deficit on the Way...
GordieCanuk @ Sat Jan 10, 2009 11:30 pm
No sources given, and I'm wondering (hoping?) that its a trial balloon, and that the actual figure will be much less.
Tman1 @ Sat Jan 10, 2009 11:39 pm
Take the bloc out of the coalition and I might take a look at them as I am less than impressed with Harper but I don't want to deal with traitors who should be sent back to France anyways.
GordieCanuk @ Sat Jan 10, 2009 11:47 pm
Tman1 Tman1:
Take the bloc out of the coalition and I might take a look at them as I am less than impressed with Harper but I don't want to deal with traitors who should be sent back to France anyways.
We won't know for certain if the Liberal-NDP coalition will fly until the 27th or shortly thereafter, my own best guess is that the Liberals will end up supporting the government.
What I'm wondering about is the $40 Billion deficit...and hoping that this is just typical political gamesmanship. If we're expecting a $40 billion shortfall and it ends up at $20 or $30 billion, it will probably get a better reaction.
Didn't Rae get crucified (and still to this day) for trying to spend his way out of the early 90's recession? Now everyone seems to be in favour of massive deficits.
RUEZ @ Sat Jan 10, 2009 11:53 pm
This is exactly what the coalition wanted. Lot's of spending.
Scape @ Sat Jan 10, 2009 11:54 pm
The only coalition that needs to function is the one between the CPC and the Libs. If we end up with a deficit it needs to be short term and with a clear plan of how we are to get back into the black. Some good ideas are listed here from the CCPA:
Alternative Budget stimulus package injects 2% of GDP into economy and creates 407,000 jobs
$1:
OTTAWA—Today the Canadian Centre for Policy Alternatives (CCPA) released the Alternative Federal Budget (AFB) fiscal stimulus plan, a one-year package that would create 407,000 jobs, boost the economy by 3%, and help protect Canadians from the worst of a recession.
Consistent with recommendations by the IMF and OECD, the plan injects $32.9 billion (or 2.1% of GDP) into Canada’s economy to protect Canadians who experience loss of income, as well as strengthen and build hard and soft infrastructure to address the challenges of climate change, income inequality, and aging populations.
Consistent with recommendations by the IMF and OECD, the plan injects $32.9 billion (or 2.1% of GDP) into Canada’s economy to protect Canadians who experience loss of income, as well as strengthen and build hard and soft infrastructure to address the challenges of climate change, income inequality, and aging populations.
GordieCanuk @ Sun Jan 11, 2009 1:25 am
RUEZ RUEZ:
This is exactly what the coalition wanted. Lot's of spending.
Iggy is being very cautious and is making a pointed fact that it will be the Conservative's budget...I don't think it matters what the budget looks like in the end, no matter how much they spend it can never be enough and we're going to be in a 2 yr (minimum) recession.
ziggy @ Sun Jan 11, 2009 1:29 am
Scape Scape:
The only coalition that needs to function is the one between the CPC and the Libs. If we end up with a deficit it needs to be short term and with a clear plan of how we are to get back into the black.
Theres allways the EI fund,that worked before.
sorry Derby,couldnt resist!
Tman1 @ Sun Jan 11, 2009 1:30 am
40 billion deficit....how does that affect me? My friggan city can't clear a fucking road of snow. That concerns me more.
Scape @ Sun Jan 11, 2009 2:08 am
Insolvency would effect us all. We nearly did just 20 years ago and if we start going into debt like we did under Mulroney we will be hooped for sure.
Bruce_the_vii @ Sun Jan 11, 2009 4:47 am
I added up the deficit figure in the recovery years of the 1990s and divided it by the jobs created and found that it took $168,000 of spending to create one job late in a recovery. I have never found and explanation of why this is so. This does not mean that temporary deficits during a world recession won't help turn the economy around I'm just saying the waters are very muddy.
Scape @ Sun Jan 11, 2009 5:56 am
That is because there is a lag between spending and job creation. The span is in years.
Bruce_the_vii @ Sun Jan 11, 2009 6:01 am
My calculation was in the later years of 1980 and 1990 recessions. So there was already years of deficit spending preceding that. And also the period I calculated was a span of several years. However, that is as good as answer as I've heard.
In addition there should be growth from lower interest rates in a recovery. So maybe half the growth is from lower interest rates a few years into a recovery and the jobs from deficit spending are at double the $168,000 - that is $336,000 per job.
DerbyX @ Sun Jan 11, 2009 6:36 am
RUEZ RUEZ:
This is exactly what the coalition wanted. Lot's of spending.
This is Harpers budget and deficit. He alone bears the responsibility because it was his fiscal policies over the last 2 years that brought us to a 30 billion dollar deficit from a 14 billion surplus.
Bruce_the_vii @ Sun Jan 11, 2009 7:20 am
Sure thing bud, Harper is responsible for the world downturn.
Try think for one minute before you open up with an opinion on a public forum such as this.
DerbyX @ Sun Jan 11, 2009 7:29 am
Bruce_the_vii Bruce_the_vii:
Sure thing bud, Harper is responsible for the world downturn.
No but he is responsible for his tax polices which set the stage including an ill thought out GST cut done for political reasons.
Its funny how Trudeau epitomized a "tax and spend" liberal running a welfare state, a description that did not get fairly applied to Mulroney. Enter Chretien who was responsible for the entire deficit the moment he took office. Bitched at for running surpluses which he applied to the debt every year allowing us to be far better off then we would have been.
Now Harper and his polices have lost the budget over 40 billion going from a 14 billion surplus to a 30+ billion deficit and according to labour stats, the recession hasn't really hit Canada yet due to lag time.
Of course none of this is Harpers fault. Nothing is ever the fault of the conservatives as they blame everything on everybody else.
