Liberal spending increases, not a weak economy, driving big deficits
By Charles Lammam and Ben Eisen The Fraser Institute In advance of tabling their first budget, the Liberals conveyed a message that deteriorating government finances were the result of a weak economy. The reality of the budget is quite different from the rhetoric; the source of the large and sustained deficits is a marked increase…
Stagnant economy won’t grow without government stimulus
The recent federal budget presents a clear and purposeful plan to deal with the new government’s fiscal priorities. The budget of Prime Minister Justin Trudeau’s government should be viewed in the context of the great debate about the best fiscal policy for contemporary Canada. Indeed, the Liberals’ fiscal strategy was supported by an overwhelming number…
Trudeau's first budget fails to make the hard choices necessary to pay for services
By Charles Lammam and Milagros Palacios The Fraser Institute The difference between campaigning and governing is that the latter means making difficult decisions. The new Liberal government's first budget shows that they are not yet prepared to make those trade-offs. Much of the new budget shows an unwillingness to face difficult decision-making about how best…
The Liberals embrace a $30-billion deficit without making jobs a priority
The new Liberal government’s first federal budget contains few surprises – except, of course, in how far it has strayed from election campaign promises. In recent weeks, Prime Minister Justin Trudeau’s government has said more than enough to let us know what was to come in the budget. The surprise? Compare Tuesday’s budget numbers to…
The evidence suggests higher rates influence where people work and live
By Charles Lammam and Hugh MacIntyre The Fraser Institute In debates about taxes, some scoff at the idea that people actually respond to higher rates by changing their behaviour. This is despite the mountains of economic research showing higher marginal tax rates reduce the incentives for individuals to work hard, expand their skills, invest, and…
When it comes to fiscal responsibility, Trudeau is all words and absolutely no action
What does fiscal responsibility mean to Prime Minister Justin Trudeau? Honestly, I don’t have the foggiest idea. Trudeau recently told Bloomberg TV, “One of the things that’s really important to me is fiscal responsibility. You don’t have to make a choice between being fiscally responsible or making investment, but you have to be making investments…
The Chretien Liberals showed that smaller, smarter government, competitive taxes, and less debt is the foundation for a prosperous economy
By Niels Veldhuis and Jason Clemens The Fraser Institute As Prime Minister Justin Trudeau delivers his first budget next week, one that reportedly contains a deficit in excess of $30 billion, his government may want to consider the lessons learned by former Prime Minister Jean Chretien and then-finance minister Paul Martin. Back in the early…
Unfortunately, government policies are only making matters worse
As the federal budget nears, there’s no question the Canadian economy is not firing on all cylinders. The global economic slowdown coupled with depressed commodity prices is posing real challenges for the Great White North. Unfortunately, government policies are making the economy’s troubled waters even rougher. For instance, media reports suggest the Trudeau government’s first…
Weigh public spending on today's programs against how much those programs will cost Canadians in the longer term
Personal budgeting isn't fun. If you spend more than you make over the long haul, it will be your downfall. But do the same rules apply to government budgets? How should we judge a provincial or federal budget? Government budget items must be measured on their benefits to the individual. What we think about each item depends on…
The budget delivers on some of First Nations’ most deeply held political and economic desires
While the recent federal budget did not offer many benefits to Aboriginal peoples, there is some money that will advance First Nations communities. Much of the money in the budget earmarked for Indigenous peoples was simply a continuation of funds promised in previous budgets. The budget invests in First Nations communities that are entering the…