Let’s say you break your foot. They put you in a boot and give you crutches. Six weeks later your foot is healed. But because the treatment worked so well you decide to keep wearing the boot and using the crutches for the rest of your life.Yet we’re being told that’s exactly what will happen after the COVID-19 crisis. Many of the emergency measures we’re introducing to keep the economy on life support during the current shutdown supposedly will become permanent.
How come? Political change — even to change back — requires spending political capital. Politicians find other things to spend their capital on. Or some of the policies may seem to “work,” though that’s usually hard to judge. Work or not, they certainly create constituencies that like them. Or the upheaval that brought about the initial increase in spending — here the standard example is the Second World War — changes society in ways that make higher spending and taxing more desirable.
Something unlikely to change is the arithmetic of deficits and debts. The federal deficit is currently exploding. At over one per cent of GDP it was already too high for the top of an economic cycle. But now it’s headed to four, five or six per cent of GDP — which is appropriate in this unique circumstance and is not unprecedented. It was fully 8.
But we do have a precedent — in kind if not scale — in the crash of 2008. Federal spending on programs was $202 billion in fiscal year 2007-8, before the financial storm. It rose to $250 billion in 2009-10, the worst part of the Great Recession. Partly it rose because of automatic increases in income transfers but it also rose because the Harper government joined the rest of the G20 in pledging fiscal stimulus of two per cent of GDP.
fpcomment Glad thats just your opinion! But its consistent with a National Posts position as the official voice of the Conservative Party. This rag and its “writers” are so predictable!
fpcomment Hahaha! Jokers!!!
fpcomment Um. Dude ran deficits every single year he held office, with no plan to ever print black ink. Any other bright ideas there, Bubba?
fpcomment This situation is financially completely out of control under Justin Trudeau. It will make Kathleen Wynne look like a financially competent leader. Please bring back Harper and give our PM the 🥾. He's just not ready!!!
fpcomment So you want him to come back after he turned a structural surplus into a structural deficit with nothing to show for it except the rich got richer and the poor poorer?
fpcomment I think Trudeau blamed Harper for virus in the 1st place!
fpcomment Yeah...like he did the last time?
fpcomment Um, no.
fpcomment They all are the same unless Canadian's look for a drain the swamp candidate. Candidates that want to clean up our bs! cdnpoli Jim Karahalios has nothing to hide.
fpcomment buildthatpipe
fpcomment The debt went up under Harper.....In fact, there has never been a Conservative PM who left the country with a smaller debt than they inherited. I am sure you mean we need another Jean Cretien.
fpcomment Harper? That is a funny joke! 😅😂🤣😆😁
fpcomment Liberals create massive debt then Conservatives fix it. People get mad. Liberals get back it create massive debt then Conservatives fix it. People get mad. Liberals..... How do you break this cycle.
fpcomment Say what?
fpcomment If only there was a national party that was socially progressive, but fiscally conservative...that sounds like it might attract voters! Maybe Mackay could run for leader of that party!
fpcomment Oh my gosh. Not the time to worry about that. How about we just focus on staying alive ok?
fpcomment No, thank you. Exactly what we won't need!
fpcomment No Harper failed at everything. That is why he lost to Trudeau. We need Jean Chrétien
fpcomment How ANYBODY can sort out this financial mess will be a test. With much reduced source of revenue generation, an aging population, a stedy influx of ‘irregular’ immigrants to care for, and a working class who is taxed to the breaking point, the ledger looks red for a few terms.
fpcomment Sure we will. He ran 6 deficits in 9 years.
fpcomment It just so happens we have a Harper who is not too old to do the job again.
fpcomment LOL
fpcomment Best laugh I’ve had in a long time, thanks Fox Post!
fpcomment You must mean Jean Chretien with Paul Martin as finance minister. If I remember correctly Harper took off 2 cents from the GST and we stopped paying down our debt because of this vote getting tactic.
fpcomment I cannot look that far ahead. But while people who are not sick or have sick family and / or friends my circles are trying get better, then they have jobs to find to pay mortgages or rent providing there is a roof to pay for. For me, day by day.
fpcomment The National Post is dreaming in technicolor .... despite your far right media attempts, Harper, Scheer and the Conservatives will NEVER be back. Now please go away and declare insolvency.
fpcomment Watson always babbles on but this’s pure drivel. We may need Chretien/Martin when this is over but certainly not Harper. Harper started to get out of the way as the economy recovered but never got to balance, an admission that’s the only redeeming feature of this column. cdnpoli
fpcomment If it's published by an American-owned Conservative rag published in Canada it must be true 🤣
fpcomment Nice job NP - one article blaming he government for acting too slow and the next for complaining about the deficit. You have become FoxNews North.
fpcomment AB is extremely lucky that Kenny has him on our economic recovery panel, as PM he received 2012 world statesmen award for economic platform during recession by world leaders, took a 2.2 million $ cut to pension, froze senators pay from 2010-2012, just to name a few
fpcomment Right now we need the GovernorGeneral to dismiss this government. The situation in Canada is very dire. Some recognize it. Some don’t. We’re not in a hole. We’re free falling into an abyss. I’m not without hope this easily. Is this the Canada we’ll leave for our kids? cdnpoli
fpcomment Harper didn't balance the budget. He ran huge deficits and then sold crown assets to make an election year 'surplus'
fpcomment More like need Chretien/Martin as they had surpluses leaving Harper in good position, and also had financial regulations in place that limited Canadas exposure to the financial crisis that came during Harpers time.
fpcomment Wow. How quickly you all forget! In 2008 it was smug, shady Harper that borrowed Billions without parliamentary approval to bail out corporations that were responsible for their own failure due to fiscal irresponsibility. Ya. I'll pass on another Harper.
fpcomment What the country will need is a Jean Chrétien/ Paul Martin type to straiten the finances.
fpcomment Wrong. We need a miracle
fpcomment Canadians will hand the country over to that sociopath and his cronies around the same time that this happens...
fpcomment Oh ya, he did such a good job that the Conservative party was all but wiped out in his last election.
fpcomment Conservatives suck as fiscal management.
fpcomment Abandoning your own declared principles to deal with a crisis just shows your principles were flawed to start with. Your trying to polish a turd. Which seems to be what the post does anyway nowadays.
fpcomment You sure about that? In the meantime Canada's national debt just keeps growing.
fpcomment There’s someone better than the ghost of Harper. His name is MaxineBernier. And we can actually vote for him. PPC
fpcomment So as soon as I saw the word “supposedly “ i stopped reading. Great article. 🙄
fpcomment How delusional!! Harper manage to get rid of a permanent surplus by the tine 2008 downturn happened!! Then proceed to accumulate the biggest deficits adding $140B-150B debts while killing jobs!! Last thing we need is debunked economies of austerity & trickle down! COVIDIDIOT
fpcomment Harper? You mean Stephen Harper? THE Harper who ran a federal deficit in 6 out of his 8 years? No, thanks!
fpcomment You guys sure like fiction.
fpcomment So fucking NOT
fpcomment No wonder you give away for free in so many places. Revisionist history, anyone?
fpcomment No to Harper, thanks👇We will stick with the Liberal bench which fortunately has Morneau & Trudeau and plenty of competent MPs. CPC has never had sound fiscal managers like Chretian & Martin and the CPC bench is void of talent. What a bunch crock the NP serves up!
fpcomment Not the time. You all disgust me. People are dying.
fpcomment you are joking right? Do you just believe every fake thing you hear? He added to the debt ore than any govt.
fpcomment Did you mean Paul Martin?
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