Monday, April 04, 2011

grits return to the 70's

I despise trudeau and almost everything he ever did. iffy and the grits want to Canada to return to those dark days. trudeau himself admitted he the economy wasn't his stringest suit. trudeau hated capitalism ( though he loved the money he inherited form his capitalist father). He loved communist dictators like castro and brehznev.
Now the party of trudeau wants to retuen to his neo socialist roots. It is too honour their coalition with two other socialist parties , the dippers and bloc.
John Ibbitson understands. Brian Lilley thinks its a Mary Poppins red book. Andrew Coyne mocks the new iffy red book.

To be sure, there’s an air of play-acting at the same time, a tentative trying-on of ideas that have long been out of fashion. The pump-priming, industrial-strategy dirigistes of Trudeau’s era would scoff at the relatively small sums involved: an increase in spending of roughly $6-billion annually, matched by a $7-billion increase in taxes, works out to less than 3% of today’s budget. Mind you, the actual increase in tax revenues is likely to be much less than that: economists who’ve looked at the question don’t believe the 3 percentage points the Liberals would tack onto corporate taxes, reversing the cuts the Tories are in the process of enacting, would raise anything like the $5- to $6-billion the Liberals are claiming.

Which means even the laughable show of concern for the deficit the Liberals manage — they would “reduce” the deficit to 1% of GDP in two years, when it’s at 1.7% of GDP now — rather overstates matters. If they follow through on their spending plans, they will almost certainly increase the deficit, though again by relatively small sums: perhaps $2- or 3-billion. They seem almost to be doing it for the sake of doing it, because that is what makes us Liberals, rather than out of any great conviction it will accomplish much.

Reading the document, I had the same feeling. The foreign investment chapter sounded appropriately hostile, but the follow-through in actual policy terms was unconvincing, and would probably change little. The “Canadian champions” silliness will be an excuse to waste a lot of money on pet Liberal projects, but in the end the economy will go its own way, as it always does. Even the hike in corporate taxes is hardly likely to be apocalyptic. The Grits, after all, would only raise the rate back to 18%, which is where it was four months ago.


Anonymous said...

I'll ask the obvious question here: Would Trudeau have become a dictator if those pesky hated conservatives had not stood in his way? (real conservative)

Anonymous said...

Trudeau hated capitalism? What's the source other some hastily written internet article?

Please Dr. Roy, stick to medicine and lay off the polemics.

I Support Lord Black