On debt do us part


 

Bruce Anderson considers how the deficit debate in the United States will impact the discussion here.

Against this backdrop, Finance Minister Jim Flaherty’s job in the run-up to the next budget will be infinitely easier than a $50-billion deficit would suggest. If he makes radical cuts, they will look less radical than those implemented elsewhere. If he doesn’t, and takes a few more years to get our fiscal balance back, voters might conclude that the downside is mild compared to that faced by our global competitors.


 

On debt do us part

  1. While it's true that Canada might not need to be as radical as the US I doubt that people who's benefits will be reduced will care about how bad someone else elsewhere has it.

  2. The Americans have decided to "have it infinitely easy," too — at least, short term.

    They call it Quantitative Easing: Invent dollars out of, well, nothing in particular, and buy back government bonds with the invented cash. Flush with this cash, and not-so-flush with bonds, banks should want to lend at very attractive (low interest) rates. Perhaps even more importantly for QE proponents, scare the dickens out of everyone that inflation will become rampant, so everyone runs out and buys stuff with whatever cash available rather than squirrel it away. "Run out and buy stuff" jacks up the economy with false prosperity for a year or so.

    Can anyone else remember a time when the counterfeiters were the bad guys? It didn't seem that long ago to this observer…

  3. Does this apply to voters, or to pundits and politically obsessed amateurs?

  4. Flaherty's not going to get anywhere if the Prime Minister keeps awarding untended military contracts worth tens of billions of dollars.

  5. The only growth has been in governments across the country >
    Municipal, Provincial & Federal raising fees and property taxes over and above inflation rates as if there are 3 times as many taxpayers , when there is ONLY 1 taxpayer who has not received any significant wage gains in 20 years !!!
    The government workers and politicians at every level have given themeselves gold plated "Defined Benefit" pension plans that the general population will never receive with CPP & OAS !!!

    Do you think people will not be extremely pissed when they find out they get a pittance to retire on and the government workers and politicos are living well and taking yearly vacations after retiring while the rest of us are paying for it !!!
    They had better take care of this inequality !!!! or their retirement plans may be radically reduced to match !!!

    There will be a tax revolt very soon if these inequalities continue !!!