While spending is recommended in a recession economy to avoid depression, I have to wonder whether or not this is a Conservative monetary policy. I personally don't think it is, but what would that mean for the Conservative Party of Canada? Does it mean that they are leaving their prudent fiscal ways, or is this the party "crossing the floor"?
Given the GST cut they gave us earlier, I have to think this is more of a frac up than a friendly gesture to the left.
Though I am a Liberal at heart and would love to poke fun at the Conservative Party any chance I get, I have to admit that spending isn't exactly the worst thing to do right now. Spending freeze is what made the Great Depression, Great and if people aren't spending in this economic climate, it really is up to the government to pick up the extra slack. This is an extremely liberal belief and most likely, a Liberal or NDP majority would have guaranteed a deficit of the same or greater amount.
The problem most people seem to have is the rosy economic predictions Flaherty and Harper had on the economic recession. Not only did they predict a lower deficit than now expected (about $16 billion less), they also did not properly predict or forecast for the crunch we are in now. Now, I agree that no one can predict the future, but if you're going to frac it up as much as the next guy, why should I vote for you.
The thing I still do not understand is the GST reduction. It was a tax cut, which is conservative in name, but it was given to the completely wrong people. It is a cut that is not clearly aimed at big corporations to invest in labour or capital nor is a large enough tax cut that would promote large purchases within in consumers. The party has essentially reduced their tax revenue and now, has to spend to make up for the investment and spending that their "stimulus" did not bring to fruition.
Decreased tax revenue combined with more spending...doesn't seem much like a Conservative policy does it?
In recent Conservative ads attacked Ignatiaff, the party claims that Iggy wants to raise taxes. That's probably true given the nature of the Liberal party, but given the projected deficit and the lowered revenue that will follow in the next year, isn't that a god thing?
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