NationStates Jolt Archive


Harper's billion Stocking Stuffer

Mikesburg
19-12-2008, 16:27
Ho Ho Ho?

Harper government plans deficits as deep as $30 billion

http://www.cbc.ca/canada/story/2008/12/18/deficits.html

A federal economic stimulus package will likely lead to a deficit in the $20-billion to $30-billion range for the 2009-10 fiscal year, a Prime Minister's Office official told CBC News on Thursday.

Hours after the announcement, Harper confirmed in a television interview that the Conservative government was planning to take unprecedented action to stimulate the country's economy.

“Some people are talking in the neighbourhood of a five to 10 billion dollar deficit. Our own assessment is frankly that will not be sufficient given the challenges we're facing,” Harper told CTV News in a year-end interview.

“I think what will be more realistic in terms of the kind of stimulus our economy is going to need is going to be in the 20-billion to 30-billion dollar range.”

The figure includes the $5-billion deficit the Finance Ministry projected on Wednesday for the next fiscal year, the CBC's Rosemary Barton reported from Ottawa.

It also includes funding for the planned $3.3-billion auto-sector bailout, as well as unspecified amounts for forestry, housing, job retraining and infrastructure investment, the senior official said.

The new numbers are a stark contrast to the surplus projections of Finance Minister Jim Flaherty's economic statement, tabled Nov. 27, and show how quickly the government's perception of the economy has been changing.

So... the right action, or not? Hike up taxes and spend, or borrow and spend? Or cut spending and release tax dollars back into the economy? I don't think Harper could possibly come out of this looking rosy... I have a feeling that the sharks are going to come out and bite even though he's pretty much given the opposition what they asked for.

Either way, I think this is the common ground that the Liberals need to save face and put the coalition notion to bed.
Kryozerkia
19-12-2008, 16:31
A deficit you say? The very same that the coalition would have brought onto us except with actual benefits to be gained from it?
Marrakech II
19-12-2008, 16:35
As long as it is for legitimate projects that will have a return on investment. I dont see why not. However if Canada is anything like the US all sorts of pork barrel crap is attached.
Iniika
19-12-2008, 18:04
Did anyone else find the Harper's comments about the future of the Canadian economy a little... disturbing? Talking about never having seen such uncertainty, being very worried about the future of the economy and that a depression is a possibility is not what I want to hear from our leader. Saying something like "We are heading into hard times and we all need to work together" would have been better than "OMG we're gonna crash!" but I guess no one really believes anything Harper says when it's attached to "work together" anymore.
Xomic
19-12-2008, 18:18
Did anyone else find the Harper's comments about the future of the Canadian economy a little... disturbing? Talking about never having seen such uncertainty, being very worried about the future of the economy and that a depression is a possibility is not what I want to hear from our leader. Saying something like "We are heading into hard times and we all need to work together" would have been better than "OMG we're gonna crash!" but I guess no one really believes anything Harper says when it's attached to "work together" anymore.

What's worst is if the Liberal party hadn't forced his hand, he'd be doing nothing.
The South Islands
19-12-2008, 20:21
We down here would kill for a 30 billion deficit.

Want to trade?
greed and death
19-12-2008, 21:23
The Economy is bad Demand side economics calls for deficit spending. Pay it off when times are better. The liberals would have done the same thing.
Neu Leonstein
19-12-2008, 22:24
What's worst is if the Liberal party hadn't forced his hand, he'd be doing nothing.
That's exactly right. He was pretending everything was fine for months and months, waiting for things to get worse and worse. That's worse than admitting that things are bad and, yes, deficit spending is what is called for.

http://www.businessspectator.com.au/bs.nsf/Article/Blame-Canada-$pd20081210-M6R4J?OpenDocument
Gift-of-god
20-12-2008, 22:59
That reminds me, I should look at the news....
Teritora
21-12-2008, 05:40
As long as it is for legitimate projects that will have a return on investment. I dont see why not. However if Canada is anything like the US all sorts of pork barrel crap is attached.

If its anything like the US, its only pork barrel crap if its not for your local area. Its what politicans do to get relected.
Vetalia
21-12-2008, 06:42
That's a little under one month's worth of deficit spending in the United States...

Of course, you guys are really in trouble now that oil prices have crashed with all those Albertan revenues soon to be gone. Kind of like what happened with us in Alaska, but for you quite a bit bigger in terms of its effects.
Ki Baratan
21-12-2008, 07:14
Oil revenues generally stay with the provinces they're earned in, its part of the federalist insanity that we've concocted here.
Alberta loses big, and Canada only loses the tax money it would have earned :P