The PM's Evolving Views on the Economy

[ThatGuy]

The sad nature of what we are facing under a government that has no idea how to do what is right for this country is just too bad

Oct. 7: "I think there are probably some great buying opportunities emerging in the stock market as a consequence of all this panic."

Asked whether he would unequivocally rule out a deficit under his government: "Yes. ... Yesterday I think I was asked one question about whether we would run a deficit and I said, 'No.' That's my answer."

Oct. 11: "The fact of the matter is independent analysts, including the International Monetary Fund, say that Canada is not going to go into recession with the current world environment and its current set of domestic policies. We're the one country that's going to continue to show some growth."

Nov. 23: "The most recent private-sector forecasts suggest the strong possibility of a technical recession the end of this year, the beginning of next.

"I am surprised at this. I am also further surprised, more importantly, by deflationary pressure that we're seeing around the world. This is a worrying development, one of the reasons why it may well be necessary to take unprecedented fiscal stimulus."

Dec. 15: "The truth is, I've never seen such uncertainty in terms of looking forward to the future. .... I'm very worried about the Canadian economy."

He wouldn't rule out a depression, saying it “could be” possible, although he quickly added he believed the world had learned enough from the 1930s to avoid another one.

Dec. 19: “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.”

Edited December 19, 2008 by ThatGuy

[Argus]

The sad nature of what we are facing under a government that has no idea how to do what is right for this country is just too bad

I think they know perfectly well what is right. But in addition to what is right for the country they are also taking into consideration what is right for them. Image is everything in politics. So they are running around busy as beavers assuring everyone of their concern. Thus Flaherty appoints a group of top CEOs as advisors as to what economic stimulus is needed, not because he needs or wants their advice, but because it will look better when he presents a budget.

We will get billions in "economic stimulus" some of which will probably be money well-spent, and some of which will be money spent on crap the federal government should not be spending money on and which serves no great purpose (a human rights museum?). But realistically, given the united opposition tried to bring down his minority government for NOT giving out billions in stimulus, do we have? And how would the situation be improved by instilling the Liberals or some kind of bastardized commitee of opposition groups into power?

The situation has evolved rapidly. The Tories, at least, warned something was coming as long ago as March, but we never heard a thing from any of the opposition parties until bear stearns went under and the TSX plummited towards the end of the election. And the best any of them could come up with as far as dealing with it was Dion's "plan to ask people what my plan should be".

Edited December 19, 2008 by Argus

[Canadian Blue]

I generally agree with most of the sentiment that Harper has really turned back on his values as a classical liberal. It seems that I can only look back in fondness in 2006 when one of his first actions was to cut back spending on useless federal government programs and use the entire surplus to pay off debt.

Unfortunately it looks the general consensus around the world is that deficit spending is the only way to combat the recession and we've taken safety in that false consensus. If the $30 billion was to in the form of temporary tax relief then I'd be happier, but it'll likely will be nothing more than a bunch of handouts.

[Moonbox]

Canadian Blue I have to agree with everything you say there.

[Barts]

Unfortunately it looks the general consensus around the world is that deficit spending is the only way to combat the recession and we've taken safety in that false consensus. If the $30 billion was to in the form of temporary tax relief then I'd be happier, but it'll likely will be nothing more than a bunch of handouts.

Deficit spending is neither good nor bad. It is a valid fiscal tool available to governments. It's a valid economic tool used routinely by people to buy large ticket items like cars and houses. Would you say that in a time of war that deficit spending would be inappropriate if it was the only way to fund the defense of one's country? Or is losing the war preferable because it would mean handing over to the enemy one's country with a balanced budget? I use the extreme example of war to underscore my point. Blindly decrying deficit spending is silly.

[normanchateau]

Blindly decrying deficit spending is silly.

So do you think Harper was a fool or merely lying as usual when he unequivocally ruled out a deficit on October 7th?

[Barts]

So do you think Harper was a fool or merely lying as usual when he unequivocally ruled out a deficit on October 7th?

Harper is a fool, and he lies, and--as he's shown since the election--is incompetent.