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Fewer jobs, less growth

What budget cuts mean for the economy


 

While the Finance Minister will table the first budget implementation act of the year later today, the Parliamentary Budget Officer has released a new report on the impact of this year’s budget.

The PBO’s latest estimates on the impact of the 2013 budget handed down in March show the cumulative impact will be to reduce economic growth by 0.12 per cent and job creation by 14,000 by 2016. Combining the latest budget measures with the cutbacks unveiled in 2012 means there will be 62,000 fewer jobs in 2016, rising to 67,000 fewer in 2017, than might otherwise be the case without the cuts.

The PBO cautions the estimates do not mean the cutbacks will result in a loss of jobs, but that employment will be lower than it might have been absent the measures. In economic speak, that means that government spending will act as a drag on economic growth, rather than a stimulus.

The full report is here. At last report, the Harper government had directly cut nearly 11,000 jobs from the public service.

Rest assured that however much smaller the government is made as a result of these cuts, there will still be someone on hand to make sure Laura Secord’s attire is appropriately depicted.


 

Fewer jobs, less growth

  1. According to Harper, the Parliamentary Budget Office he created is “partisan.” So clearly we can’t trust these numbers… In order to receive the truth, we must turn on the TV (to any channel,) wait 20 minutes, and watch an Economic Action Plan commercial…

    • Well, your answer proves that you are unwilling to discuss the PBO report. Tell us what else is new.

      • Actually, the PBO was the only one right about GDP growth in 2012 (and 2013.) They originally forecast 1.9% growth; Mark Carney 2.5%.

        >> “I don’t want to be critical,” said Conservative MP Dave Van Kesteren as the committee met Thursday. “But there’s an air of pessimism” to Page’s report that many other economists don’t share, he said.

        Van Kesteren pointed out that the Parliamentary Budget Office (PBO) projects that real GDP growth (after factoring out inflation), will slow to 1.9 per cent in 2012 and 1.6 per cent in 2013 — below forecasts from the Bank of Canada and many private sector economists. <<

        Looks like that's the current BoC forecast, revised down a number of times later… But I'll take Harper's truth to the PBO's partisan slander, any time!

        Budget watchdog accused of being too pessimistic
        http://www.cbc.ca/news/business/story/2012/04/26/page-parliamentary-budget-officer.html

        • It’s true. Ever since Harper became Prime Minister, most Canadians have been forced to barely survive on a starvation diet consisting of thin gruel, mud and tree bark. Things are worse here than in North Korea.
          I’m not making this up.
          Stop Harper!

          • Orson Bean making a moronic attempt at sarcasm?

            Drink!

          • TJCook being a transparent partisan hack?
            Drink!

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