Finance Minister Jim Flaherty didn’t see BC fall into line behind him after he presented his 2009 budget. The Fraser Institute was especially disappointed.
In a news release published almost before Flaherty stopped speaking, senior economist Niels Veldhuis complained:
“This budget is simply irresponsible given Canada’s current economic climate. Massive increases in government spending and $85 billion in deficits over the next five years will do little, if anything, to boost economic activity and instead will saddle Canadians with higher taxes in the future.
“The government has caved in to the special interest groups lining up in Ottawa with their hands out for federal cash. This budget will do little in the way of improving the economy and sends a negative signal to the real generators of economic activity: skilled and talented Canadians, entrepreneurs and successful businesses. ...
“All in all, this entire budget was an enormous missed opportunity. If Finance Minister Jim Flaherty truly wanted to have a positive impact on the Canadian economy, he should have reduced government spending, eliminated the capital gains tax, and aggressively decreased personal income and business taxes.”
The Business Council of BC, in a news release sent to The Tyee, was cautiously positive. According to Business Council President and CEO Virginia Greene,
“While it is regrettable that the era of budget surpluses has ended abruptly, the government rightly chose to stimulate demand in the economy and to take strong action to lessen the likelihood of a prolonged recession.
“Today’s budget will deliver a timely boost to Canada’s economy and help businesses and workers weather the downturn. However, it is critical that the government stick with its plan to return to a balanced budget no later than 2013.”
From Sointula on Malcolm Island, Catherine Stewart of the Living Oceans Society fired off another news release to The Tyee:
“Canada’s ocean resources contribute $23 billion dollars to our GNP every year. Planning and effective management, budgeting for fisheries recovery and investing in a future of ocean health and wealth should be a central component of a national budget. Mr. Harper’s government has failed to deliver either vision or hope for our oceans.”
Jim Sinclair, president of the BC Federation of Labour, wasn’t impressed. In a news release posted on the Fed website, Sinclair said:
“The Harper government has once again reverted to its tax-cutting ideology even though economists are nearly unanimous that tax cuts produce far fewer jobs than would be created through targeted infrastructure spending ...
“This budget turns a blind eye to tens of thousands of British Columbians who find themselves laid-off and unable to collect EI because of increased restrictions brought in by Conservative and Liberal governments. Five extra weeks of benefits will do nothing to give real aid and real hope to those who need it the most. The EI system is broken.”
Crawford Kilian is a contributing editor of The Tyee.
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Frank
3 years ago
The Fraser boys
"If Finance Minister Jim Flaherty truly wanted to have a positive impact on the Canadian economy, he should have reduced government spending, eliminated the capital gains tax, and aggressively decreased personal income and business taxes.”"
Yep, I hear that really worked well when Bennett followed their prescription in the early 1930's.
Back in the 80's economic profs were quite upfront about how the "new" economics spouted by the Fraser Inst. types was really just a repackaging of the classical economics that gave us the Dicken's England we'd all love to live in. Come to think of it, Michael Walker and Scrooge do share many traits.
morechatter
3 years ago
Where's the safety net?
Hows does that work when you have lost your job and can't afford to pay your mortgage or rent or feed the kids because your benefits have run out? And money in the Liberals pockets for housing and the like has a way of working itself into general revenue. Money into Forestry was a must but restructuring of the Industry is also a must. More money for forestry will be needed although it is a good start.
And ditto for the homeless crisis across Canada and especially here in BC as we all know the best they have been able to come up with is accomodating a handfull of people while the rest sleep in shelters and many go untreated for serious disease.
Whats that mean? I would have to think it means the Feds are on board with it and we can expect to see a lot more homeless. And a lot more people in need of a couch. We can also expect new viruses as their are several bugs being left to mutate that are taking on some deadly forms as thems the hazards. The reno tax credit is interesting stuff I would say who is this for Home Depo and how about other Industries they sure could use some kind of stimulus?
morechatter
3 years ago
More incentives for business
Especially those government is busy bailing out to help ensure their success and even more building incentives as to further stimulate growth. And I'm even into sending Home Depo more business especially if it has to do with renovationing exisiting structures to create affordable housing for seniors and youth, women and children and the single low income. Also the question of afforable homes needs to be addressed by government for first time buyers. Co operative Housing with single moms and tots with intergrated daycare and other ventures along with volunteer grannies. It would be good for Home Depo for sure along with creating employment for Canadians while giving some back their dignity while ensuring future Canadians do not have to bounch back from a cold sidewalk without a safety net to fall into. I'm not thinking the whole tab but at least get the ball rolling, you know like in Alberta. So I wonder how Albertains are feeling about the Pope's outrage over the oil sands ventures or the Feds for that matter?