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The best thing about a fall election...

The problem with Counter-cyclical budgeting is the fact time and time again in Canada we have seen govt go into debt and then drown in debt and then have to raise taxes or cut spending drastically.

The theory makes perfect sense, however imo it cannot be applied in the real world.

I am for perhaps 1-3 billion dollar deficits at most as if things get to bad we won't shoot our selves in the foot.

If you go beyond that, what could happen is that if you face additional unexpected deficits you can have a small deficit balloon into unmanageable deficit.

I do agree that Canada has one of the most stable fiscal situations so it has the ability to go into debt. However the horror of the Trudeau and Mulroney years haunt us all still.
http://en.wikipedia.org/wiki/Deficit#National_budget_deficits_.282004.29

The theories are all great but ask you economics teacher, about the applications to real world and they will remind of you of the influence of politics.
 
kEiThZ said:
Greens - A fringe vote based on environmental issues.....though I like their fiscal conservative, socially progressive principles.
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I don't think this is really true anymore, honestly. It was true under Jim Harris. Elizabeth May is a way different leader.
 
Elizabeth May cut down a tree on CBC :D
 
lordmandeep said:
The problem with Counter-cyclical budgeting is the fact time and time again in Canada we have seen govt go into debt and then drown in debt and then have to raise taxes or cut spending drastically.
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Again, this is an issue of poor management by our political elites.

lordmandeep said:
The theory makes perfect sense, however imo it cannot be applied in the real world.
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This is because we ran structural deficits paying for social programs with deficits not infrastructure. That's like buying new clothes on a credit card. We aren't doing that anymore, so what's wrong with taking on some good debt ...ie infrastructure spending (just like taking on a mortgage) or bolstering our industrial sector (like spending money on education to learn new skills).

lordmandeep said:
I am for perhaps 1-3 billion dollar deficits at most as if things get to bad we won't shoot our selves in the foot.

If you go beyond that, what could happen is that if you face additional unexpected deficits you can have a small deficit balloon into unmanageable deficit.
Click to expand...

The perhaps, we should have laws limiting the size of the deficits, like the EU.


lordmandeep said:
I do agree that Canada has one of the most stable fiscal situations so it has the ability to go into debt. However the horror of the Trudeau and Mulroney years haunt us all still.
http://en.wikipedia.org/wiki/Deficit#National_budget_deficits_.282004.29
Click to expand...

Something we should be proud of. However, we have cured our fiscal deficit while building an infrastructure deficit.


lordmandeep said:
The theories are all great but ask your economics teacher, about the applications to real world and they will remind of you of the influence of politics.
Click to expand...

Agreed. But that doesn't mean the theories don't work. We should be demanding that our politicians understand basic economic principles and govern our country according to them.
 
I agree 100%, but I am a pessimistic, realistic man.

I have lost that youthful, optimistic, idealistic charm in my early 20's. :D


What I meant by the real world is the world of politics, which is not friendly to fiscal policy.


Screw fiscal policy!

Monetary Policy is better! :rolleyes:
 
New poll released today suggests an increasing chance of a conservative majority ... Dion has a problem connecting with some and delivering his message and that is hurting the Liberals... But he's got the best plans IMO... I'd rather see another minority with all its bureaucracy than a Conservative majority
 
I want a minority.

Harper would likely get a sissy fit and punch his advisers.
 
I don't think Harper would be too upset with a minority situation again. His government his managed to pass quite a bit of legislation without much opposition. It would be quite a while before the next election would be called, and the Liberals would probably become preoccupied with selecting a new leader.
 
and the Liberals would probably become preoccupied with selecting a new leader.
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the problem if the liberals pick anyone a bit interesting or exciting, Harper will lose.
 
lordmandeep said:
the problem if the liberals pick anyone a bit interesting or exciting, Harper will lose.
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This is the problem with political parties....they are inherently against charismatic leaders....Kennedy, Rae and Ignatieff were all more appealing than Dion. The Liberals had to choose the compromise candidate to preserve their party. Sadly, that's why they'll be stuck on the opposition benches.

Personally, I couldn't care less about charisma. I would rather have an intelligent geek running government than everyone's fun party guy. I'll vote based on the platforms....can't wait for the debates.
 
kEiThZ said:
This is the problem with political parties....they are inherently against charismatic leaders....Kennedy, Rae and Ignatieff were all more appealing than Dion. The Liberals had to choose the compromise candidate to preserve their party. Sadly, that's why they'll be stuck on the opposition benches.
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Though the NDP chose charisma (to a fault?) w/Jack Layton...
 
I thought Kennedy was good on both policy and his public speaking. I want him to be the next Liberal leader if Dion for some reason can't take back government.
 
kEiThZ said:
....Kennedy, Rae and Ignatieff were all more appealing than Dion.
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I'm surprised how little support he's been getting from Quebec... I'd thought he would get the most support from his home province
 
CGM said:
I'm surprised how little support he's been getting from Quebec... I'd thought he would get the most support from his home province
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Clarity act. That and the Liberal brand is severely dented by all the scandals. The Liberals still haven't committed any acts of contrition for those sins....
 
kEiThZ said:
Clarity act. That and the Liberal brand is severely dented by all the scandals. The Liberals still haven't committed any acts of contrition for those sins....
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There have been plenty of Conservative scandals in their short minority government running up against 3 years now.
 
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