An opportunity to show real leadership

Scott Clark and Peter DeVries lay out what the Harper government should do with its fall economic update.

The current commitment to eliminate the deficit in 2014-15 would be discarded. It is neither realistic nor necessary to eliminate the deficit in 2014-15. Eliminating the deficit two or three years later would be more realistic and acceptable in the current economic environment…

A commitment to reallocate these savings from the program expenditure reviews to new initiatives to support research, investment, innovation and infrastructure in a federal-provincial partnership … A commitment to begin the difficult but necessary process of tax simplification and reform to support efficiency, economic growth and job creation. The government would commit to use the savings (which would be substantial) to lower both personal and corporate income taxes, thereby supporting economic growth and job creation.




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An opportunity to show real leadership

  1. Snort!

    For that we’d need a real financial leader, but what we have is Harper and his tired ideology.

  2. Always interesting to read bureaucrats and how they think world works. There is every reason to believe that there is going to be major world economic crisis/downturn/depression any time now because of Europe. 

    Either Greece is going to default, Italy or Spain can’t afford their debt costs, French/German/
    Belgian banks don’t have money – Europe has screwed the pooch, we are just waiting for effects to happen. 

    So what’s the point of putting in place a Canadian plan before we even know what to plan for. Do Clark and DeVries think Harper et al. are seers who can accurately predict future and plan accordingly? 

    There was good edition of The Agenda the other day that explored why macroeconomics is craptacular and needs to be rethought and one of the things the guests were talking about is how inadequate economists’ models are for predicting anything. 

    Our Credit-Anstalt moment has not occurred yet, but it’s going to, so if any planning is to be done we should wait till shocks of coming euro crisis are known and we aware of what to plan for. 

    Business Week ~ Lessons From Credit-Anstalt Collapse:

    In May 1931, a Viennese bank named Credit-Anstalt failed …. The bank not only made loans; it acquired ownership stakes in all kinds of companies throughout the sprawling empire, from sugar producers to the new automobile makers. Its headquarters city, Vienna, was a place of wealth and splendor, famous for its opera, balls, chocolate, psychoanalysis, and the extravagant architecture of the Ringstrasse. The fall of Credit-Anstalt—and the dominoes it helped topple across Continental Europe and the confidence it shredded as far away as the U.S.—wasn’t just the failure of a bank: It was a failure of civilization.
    http://www.businessweek.com/magazine/content/11_18/b4226012481756.htm

    • It’s not just Europe….they’re only the latest headline.

      Until we fix the system, everybody will have a turn at it.

      Like the 54,000 jobs Canada lost last month.

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