National
Federal government’s promises of deficit reduction ring hollow
From the Fraser Institute
” the most credible promises are introduced with immediate action “
As budget season approaches, it’s worth remembering that policymakers must pair promises of fiscal discipline with concrete action.
According to projections, the Trudeau government will run a $40.0 billion deficit this fiscal year, which is slightly larger than last year’s $35.3 billion deficit, even though revenues are up almost $10.0 billion. Finance Minister Chrystia Freeland has repeatedly said that the era of large deficits won’t last forever and promised that starting in 2026/27 the federal deficit will be held every year to less than one per cent of GDP (the value of all goods and services produced in the economy).
But Freeland’s promises should be taken with more than a grain of salt because all governments have spotty track records when it comes to fiscal promises, particularly when they’re based on spending restraint in the future. Conversely, the most credible promises are introduced with immediate action.
The most famous example in Canada’s recent fiscal history came in the 1990s when Paul Martin, the then-Liberal government’s finance minister, vowed to slay Canada’s crippling budget deficit and repair federal finances “come hell or high water.” Martin’s words were accompanied by immediate action in the form of the transformative 1995 federal budget that began a process of deep budget cuts and major policy reforms that immediately put the government on a path to fiscal balance. The deficit was quickly eliminated and Canada was put on a sound fiscal footing that served the country well for almost two decades.
The “hell or high water” episode shows us how governments must match strong commitments with strong actions to increase the likelihood of success. On the other hand, promises for fiscal improvements in the future—unaccompanied by any concurrent action—usually aren’t worth the paper (or Tweets) they’re printed on.
The Trudeau government has produced many examples of incredible promises. First, on the campaign trail back in 2015, Trudeau and his team promised small and temporary deficits, and to shrink the national debt burden. Since then, the prime minister and his finance ministers have never been shy about promising to improve the bottom line. However, the target dates associated with these promises came and went without much notice, and the government pivoted to new plausible-sounding targets, using only words without policy change.
Again, the Trudeau government is far from alone in this tendency. In Ontario, Premier Wynne’s government repeatedly promised to shrink that province’s daunting debt burden, yet failed to decisively act. Basically, it was wishful thinking.
After Ontarians voted out the Wynne government, the Ford government promised to break from the Wynne approach and introduce real reforms that would slay the deficit quickly. But after a few half-hearted feints in the direction of fiscal discipline, the Ford government also failed to make good on its promises of debt reduction and as a result Ontario remains stuck under a mountain of government debt.
Canadian history is clear—unless government promises coincide with concrete actions to immediately start shrinking budget deficits, these promises of fiscal restraint at some future date shouldn’t be given much credence. Minister Freeland’s recent promises fall into this category. In the upcoming federal budget, if the Trudeau government and its cabinet want its promises to be credible, it must learn from its Liberal predecessors and their “hell or high water” moment, and reduce spending to immediately begin a process of deficit reduction.
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We are one day away from Trump being inaugurated, the country may be thrown into 25% tariffs, in the hundreds of Executive Orders that Trump will be signing on his first days back in office as the 47th President of the United States…
And it’s hard to not notice that the Left Leaners are more focused on Premier Smith, not signing a retaliatory declaration on the United States – working to protect the economy and job base of Albertans…instead of continuing on with the actual issues that need be resolved:
- Border Security;
- Reducing Drug Trafficking.
This is what got us here in the first place…but legacy media only seemingly want to fade Justin Trudeau and the Liberal decade of failure, into the background.
If we had a government that wasn’t currently Prorogued, or that caused this through reckless policies in the first place…because of the Liberal Party collapsing due to a non-confidence vote being imminent…the Premiers of every province wouldn’t have had to try and unite…wouldn’t have had to try and put 26% (the largest portion) of the Alberta GDP, up as a lamb to be slaughtered.
“TEAM CANADA”, they screech…
“Smith has committed Treason”, they relent…
And in certain circles…this rage fest, is seemingly getting traction.
A part of this is all due to the Liberal Friendly, Legacy Media…some even due to censorship, where we full well know that through Bill C-63 – The Online Harms Act, throwing you in jail for mean tweets, or having you strapped with an ankle monitor if somebody even believes you are going to shit-post online.
Mark Carney…first to throw his official launch into the melee.
Parachutes into Alberta…where apparently, him and George “The Porch Pirate” Chahal, Thelma and Louised a City of Calgary vehicle, and headed into Redmonton for their Launch Event:
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Where…they did invite legacy and alternate media to the event…
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And then, through the protection of Edmonton Police Services…selected a few friends to be allowed into the event…while trespassing others off of the property.
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Isn’t Edmonton rife enough with Crime that their Police should be focused on, over playing private security, for a Liberal Party Launch…kicking out invited guests?
And then…let’s hop into how incredibly moronic Team Carney is…in botching not only one Logo, but also breaching copyright laws on a second…in 2 days.
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Instead of just using the Liberal Party Logo…
Or, are we just supposed to forget that he’s running for Liberal Leadership?
Rightfully, Mark is being ruthlessly mocked online for his Copy Right infringements and lack of creativity…
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Freeland…not doing a whole lot better.
Thinking that if she changed her social media profile picture to be more Liberal Red, she’d come off more appealing…and ended up with this:
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Dear Lord…this is Nightmare Fuel!
Even more so knowing that she could be the next Prime Minister of Canada, given her absolutely horrific track-record as an MP and deputy PM.
Where it’s only now, that he job is on the line…that she has taken to Axing the Tax, that everybody knows, does not give 8/10 Canadians more back than they contribute:
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Both her and Mark have made statements about this…
But they both seemingly allude to the idea, just like the previous last ditch efforts to keep the tax in place but make it more popular by rebranding it, around a year ago…
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It’s a bullshit tax…
That will never actually achieve anything close to fixing the weather…
Because planetary temperatures and regional weather are completely dynamic…and are controlled by that large ball of fire in the sky, we refer to as, ‘The Sun’.
It’s hard to believe that there are still some people out there who don’t recognize that when the sun is up, the temperature outside is WARMER and at night time, it’s COOLER…but yet want to blame Soccer Mom’s in their SUVs for heating up the planet.
We could talk about the other no-name failures that haven’t got the traction to even compete in this spud race…
Frank Baylis – Liberal Supporter who got the contract for ventilators that were never approved for use in Canada, that were bought for thousands and sold of as scrap metal.
Chandra Arya – who claims to be fluent in French and English, while cannot speak a word in French and can barely communicate in English…
Karina Gould – who announce her intent to run, in a Tweet on X…and then blocked comments…
But, really…why bother?
Their leadership run is as much of a catastrophe as their rein over Canada, for the last decade.
It’s so terrible, you’d almost think that they are deliberately sabotaging their own chances at winning…where at least 24 Liberal MPs have already decided that they’re going to take some time off of politics, “to spend more time with their families”.
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From Jason Nixon, MLA for Rimbey-Rocky Mountain House-Sundre and Alberta’s Minister of Seniors, Community and Social Services on X
Alberta’s government immediately took action to support those who lost their homes in the Jasper wildfire. We were on track to deliver 250 homes, but Alberta cannot do this without land. It’s been radio silence from Ottawa since Premier Danielle Smith sent a letter to the Prime Minister nearly a month ago. Read my full statement
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