Things to look forward to as a result of the election

[dre]

The economy is in no way 'terrible'. And most of the problem is due to the hammering the oil industry is taking, and initiatives he and his liberal colleagues in Alberta are taking will cause the oil industry to shrink further, while the appalling incompetence of the Ontario Liberal government will continue to see manufacturing deteriorate in that province.

In light of that you think that baby bonuses and community centres, more money to natives, and climate change initiatives are going to help our economy? I don't. I suspect their first budget deficit will be more like $15 billion than $10, and that four years from now that yearly deficit will have grown, not shrink to a surplus as they currently claim. There are simply too many holes in their rosy economic estimates, what revenues they will get, and what their initiatives will cost.

The economy is in a deep structural recession and has been for years. The effects have just been hidden by a band-aid of historically easy credit, and by injecting synthetic money into the economy in the form of loans, and massive government intervention to keep growing the realestate bubble.

But propping up an economy with debt, as the conservatives have done does not work for long and it guarantees recessions in the future, because eventually the consumer will stop borrowing and spending even if the overnight rate is at 0%. And when that happens its recession.

We are going to have a deep, long recession and that will be clear to everyone within the next year or two. And there's nothing the liberals can do to stop it.

[69cat]

I agree with you dre

Sure, the CPC ran deficits as that is modern thinking to fix recessions, the references being Ontario gov over last +10 years and the demands of opposition parties during the CPC terms. Though the CPC ran smaller deficits than would have occurred if opposition parties had free reign.

Record low interest rates have kept things moving along but perhaps this philosophy is simply an economists trick with numbers, higher interest rates resulting in reduced spending may not cripple the economy as we are being led to beleive. We will see just how stupid the average Canadian is with personal finances and their own debt to earning ratios - the government is not responsible for individuals lack of intelligence.

But we can be pretty sure that when things get tight and government revenues shrink that the philosophy of spending ones way out of a recession will go into high gear under our new government and cost control will take a back seat (reference to Alberta NDP and Ont gov). For those reasons i expect a recession to come and it will be a long one. Just like one will say it is not the Liberals fault this time, we can certainly say it was not the CPCs fault previously either. The difference will be how much the country suffers as a result of government actions.

Developing resources, pursuing Green Energy programs while disregarding present infrastructure needs and capabilities, Climate Change targets, wealth transfers to foreign countries, supporting industries, increasing taxes, developing government programs, managing spending, increasing trade, these are all things that can make a country hurt less or more going through a recession. I dont expect a rosy future so all we can do is see how our government manages the country to limit the effects.