Thursday, November 27, 2008

Ideology, Politics Are Breeding Inaction

I'm watching Finance Minister Jim Flaherty give his budget update as I write. I'm extremely disappointed by his lack of action on doing something to counter the recession. Harper just told APEC that he would enact a fiscal stimulus. The OECD, IMF and other organizations have urged Canada to join the rest of the world in providing a large, effective fiscal stimulus.

Flaherty makes it very clear that his main concern, and Harper's main concern, is to not be seen to fall into deficit. Flaherty even projects a surplus for next year, based on over $4B in cutbacks next year (cutbacks!), no fiscal stimulus, and no recession. This is just politicking, and it's hurting the country.

It's disastrous economic management, but it's bad politics, too, because if Harper-Flaherty screw up our economy, as they seem to be doing, they're toast in the next election. If they wanted to wait in order to harmonize with Obama, that's one thing, but they're letting politics and ideology run the country.



ALW said...

If you are going to make a major multibillion dollar injection into the economy, isn't a wise idea to figure out how you're going to do that before you do it?

Everyone seems to be complaining waiting until February is too late. But surely the government needs to flush out its plan first???

Yappa said...

ALW - That's just what I said. If they needed time to coordinate, they could have said so. Instead Flaherty went on and on about not running a deficit. He even announced cutbacks so that he wouldn't have to announce a deficit for next year. Cutbacks! This is not a government that is working hard to create a good stimulus package. It's a government that is playing politics and turning a blind eye to the economy.