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Thursday, October 07, 2010

Time to buckle down and fight deficits and debt

The most crucial problem facing every industrialized country is the same problem that we all faced in the 90s: deficit and debt.

Canada did well in the 90s to climb out of deficit. Credit does not just go to the federal government under Jean Chrétien. Much of the overspending was coming from the provinces and so it took a truly national effort to climb out of the abyss.

Now we are slipping back down into that black hole. Governments all around the world tried to “fix” the economy by throwing money at it, never realizing that they had to take money out of the economy in the first place. So now we are all burdened, and Canada is no exception, with a new round of crippling debt and deficit.

After a decade of struggle we spent another decade squandering the opportunity, and now we are back to square one.

Some are pushing for more spending to calm the still troubled economy. If spending increases weren’t successful before, and there is zero evidence that it were, why would we do it some more? Why would you want to charge toward the abyss?

It is time that we once again give up on these failed Keynesian ideas and resurrect the spirit of the 90s.

We need a national political consensus towards fighting debt and deficit at all levels of government. And we need it now.

Posted by Hugh MacIntyre on October 7, 2010 | Permalink

Comments

That consensus, in the context of the minority government we find ourselves in right now, will be very difficult to find. We all know what side the NDP and the Bloc are on regarding this issue. I'm not particularly hopeful about this.

Posted by: Dennis | 2010-10-07 5:03:05 PM


I note that even local municipalities in the Lower Mainland of BC refuse to get the message to nothing of the provincial and federal levels. A couple of the latest examples are municipal gasoline taxes, a proposed extra municipal tax on alcoholic drinks. Instead of cutting wast and spending they are constantly looking for more things to tax. Not only are we being bled to death by federal and provincial taxation but we now have every small municipality jumping on the band wagon.

Posted by: Alain | 2010-10-07 7:41:23 PM


We need a national political consensus towards fighting debt and deficit at all levels of government. And we need it now.

Posted by Hugh MacIntyre on October 7, 2010 at 02:56 PM

I agree, but pigs will fly before this happens.

Posted by: peterj | 2010-10-07 10:36:10 PM


That is what they said in the 90s and yet we managed it. I think what we need is what we had in 1993, an opposition party that is pushing for fiscal responsibility. The current Liberal leadership takes shots at the federal deficit, but lack credibility because they propose new spending in practically the same breath.

Posted by: Hugh MacIntyre | 2010-10-08 7:07:15 AM


When pigs fly, Peterj is correct, at least in Canada there are so many people that work in, or depend on government, they will fight tooth and nail to keep the party going, even though its is with borrowed money.

Posted by: don b | 2010-10-08 8:59:39 AM



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