A Made in Canada Economic Disaster
On December 16, the Liberal Government released their “Fall Economic Update.” It was filled with evidence that Canada is on the wrong track. It outlined massive spending increases, reduced fiscal accountability, and deficits for decades to come.
In his address Finance Minister Bill Morneau painted over the government’s disastrous fiscal record by stating the economy is “sound and growing.” Yet, he failed to acknowledge the mountain of debt burdening our country and the crippling effect that this tax and spend philosophy has on hardworking Canadians.
Mr. Morneau presented a deficit that is on track to substantially deepen. The Finance Minister’s deficit ballooned to nearly $27 billion, signaling a $7 billion increase versus what was promised in the budget earlier this past spring and not accounting for many of the costly election promises they made.
While the Liberals spend your tax dollars frivolously, it is Canadians that will be forced to pay the bill. Further, the ballooning debt will only increase the financial angst of Canadians who have already faced a substantially lower wage growth under the Trudeau government. Under Justin Trudeau, average annual income growth is only $38, $390 less than the growth in 2015 prior to the Liberals forming government.
The Fraser Institute recently published a report showing the spending by the Trudeau Government, adjusted for inflation, has become the greatest in Canadian history. The report states that “three of the four highest-spending years on record—2017, 2018 and 2019–are all in the current government’s tenure.”
In the past, other governments have had to endure greater debt levels and spend greater to weather the volatility of war or depression. The stark contrast with the current government is that our nation has not been burdened with a recession, depression, or war. For example, in 1943, at the height of World War Two, per person spending (in 2019 dollars) reached $7,582, and in post war this decreased dramatically. Compare this with spending in 2019 at $9,066 per person.
In times of recession, governments spend money to kickstart the economy; either to start infrastructure projects to ensure that Canadians get back to work or assist struggling businesses in an adverse economic environment. The Liberals have become overzealous in their spending and it has made Canada vulnerable for a “made in Canada economic disaster.”
The Liberal Government is committing a series of unnecessary errors during a time when they should have been ensuring Canada’s fiscal house is in order to weather uncertainty. Tax-payers are on the hook for the Liberal Government’s record high spending. This will force all of us, including future generations, to pay the bill. Conservatives will continue to fight for accountability in Government, and respect for your tax dollars.