Saturday, December 11, 2010

Cutting the deficit

An excellent editorial in the NP. I have a few suggestions for HM Government. No new hiring in the civil service, all 25% cut of civil service by attrition, cut all advocacy funding, eliminate the SOW, eliminate corporate welfare... Those are a few of my cuts. What cuts would you make?

Last week, Finance Minister Jim Flaherty declared a long-awaited war on government largesse. "We have to stay on track to balance the budget in the medium term. And that requires some decisions. I'm consulting with my colleagues here and discouraging new spending." In the spirit of the season, he added, "It means that not every wish gets fulfilled. I'm not Santa Claus. I'm, at best, a mere elf."

Well, it's about time government shrunk its spending, if not its ministers. In their first two years in office, the Tories increased spending by 14.8%. Then the recession hit, and the Conservatives posted the biggest federal deficit in Canadian history: $55.6-billion in the fiscal year that ended in March. The government estimates it will bleed red ink until 2016, by which point the national debt will have grown to $628-billion.

This has naturally angered many Conservative voters, who for the past two elections thought they were electing a government that would spend, well, conservatively.


Louise said...

A few months back I predicted this sort of thing would happen.

There's a tried and true rhythm to the political cycle. A few promises made are kept as soon as the Party takes the reins of government, then in the second and third year and on to the first part of the last year, there's a period of dormancy.

Then, as the election call beacons, out come the more important of the last election's promises.

It doesn't work as well, if all of the promises are kept in the first six to twelve months of their term. Gotta save the best for closer to the end, so they will be fresh in the voters' memories.

Yet another sign that an election will be called sometime in the early part of 2011. I'm betting Section 12 will be the big juicy carrot on the stick.

Anonymous said...

we will never see balanced budgets again. the coming depression will create a demand by the public to increase stimulus spending again. by this time ontario will be bankrupt (figured i'd vote for mcguinty to get it over with quicker) and the feds will be printing money to beat the band while the US dollar becomes wallpaper.
of course i could be just paranoid.


Anonymous said...

NP “The truth is, the Liberals faced some very tough economic choices when they took the reins of power in 1993. ‘

That’s BS. Even the NDP could have balanced the budget in those circumstances. The “tough economic choices” had already been taken by Mulroney and George Bush Sr and the next regimes gained from that pain.

The Liberals took over on the crest of a wave coming out of a recession and latching onto NAFTA, just like Clinton did. Just to pick one huge dynamic change: Canada’s debt was about $600 billion. Interest had been jacked up around all the world’s central banks to successfully fight inflation. Do you recall your mortgage being 15% then it quickly fell to 5%? That 10 % cut when applied to the debt saves $60 billion a year. Presto the budget is balanced. But that did not stop Martin from downloading to the Provinces Health Care from the 50% top up to a mere 18% and then the MSM blamed Mike Harris for cutting Health. Also cuts to military …on and on. All the while NAFTA kicked in the tax revenues poured into Ottawa.


Anonymous said...

Attacking the monstrous civil service would be a good issue to take into an election. We all know that the left would really get their backs up for that. (real conservative)

johndoe124 said...

I would also get rid of the office of official bilingualism. Free people communicate in the language of their choice.

Also, since English is a requirement for every position within the Public Service I would make that the official working language of Federal Government and can all the misspent tax dollars on French language training.

I would also insist hiring strictly on merit and get rid of all the diversity and multiculture parasites that infect Human Resource departments across the Public Service.