Wednesday, May 27, 2009

The Harper Conservatives' Massive Deficit

GritGirl from March with the video of the same name which is appropriate to roll out today given the headlines, "Deficit soars, Flaherty gets 'dunce cap'," "$34-billion to $50-billion – in 4 months."
Finance Minister Jim Flaherty offered an impromptu fiscal update Tuesday, announcing that this year's budget deficit will balloon to more than $50-billion – a new record for red ink in Canada as the costs of the economic downturn mount.
“We will run a substantial short-term deficit this year which I would estimate at more than $50-billion,” Mr. Flaherty told reporters after the House of Common's Question Period.
It's remarkable to watch that video footage of Harper in the House of Commons at the end of November talking so reassuringly about surpluses and not having a structural deficit. He and his Finance Minister are totally discredited for making those representations to Canadians. That $80+ billion for the coming two years referenced in the video will need to be updated as well. And imagine such an updated video running across the country at the moment or in an election campaign, in comparison to Mr. Harper's silly ads. Record versus ridiculous. Which do you think would be more important to people?

Let's not forget that this year's deficit is not all recession related as they like to tell us. A good chunk of this year's deficit, $13 billion, is Conservative wrought and theirs alone due to high spending and the GST cuts. Oops, actually ours as we'll all have to dig out of that Conservative pre-recession hole before we get around to dealing with the entire mess.

About that digging, Mr. Flaherty...
But he insisted that the Conservatives would as planned bring the government out of deficit in four years without raising taxes.
Why on earth would we believe anything these Conservatives have to say now?