Wednesday, November 26, 2008

Mixed messages

There's been no lack of rightful skepticism about the Cons' poor attempt to change the subject away from their own refusal to do anything about the impending recession. But it's worth highlighting just how thoroughly the Cons are contradicting themselves in trying to do so.

Here's Corn Cob Kory's attempt to claim that the Cons have nothing better to do than to tinker with public-sector perks rather than dealing with the economy as a whole:
"You can't just preach from a pulpit in the House of Commons about constraining discretionary spending and then not actually take measures yourself," said Kory Tenycke, a spokesman for Mr. Harper. "We need to lead by example - that is what we're going to do."
So what's wrong with that picture of preaching fiscal restraint and reduce spending? Compare the message the Cons claim to be trying to send about government expenditures with their response as to whether or not they can be bothered to offer any economic stimulus:
"When is this prime minister and this government going to realize that we need action now, not months from now, to help Canadians get back to work and restore confidence in our economy?" Layton said.

The finance minister, in turn, cited the stimulus measures brought in by the previous Conservative government that the NDP voted against, including reductions to the GST, personal income taxes and small business taxes.

Flaherty said those measures provided a stimulus of almost two per cent for next year, which is more than the United States and other G7 nations have offered so far.
Of course, the GST cuts were the largest and most expensive element of the Cons' pattern of tax giveaways so far - making them the bulk of the stimulus which Flaherty claims should be enough to push the economy in the Cons' intended direction. And the obvious effect of the GST cut is to encourage discretionary spending within the private sector.

So if the Cons are right in saying that now is the time for belt-tightening in the country at large, then they're really only conceding that the GST cuts which figure to be the largest factor in an impending budget deficit were downright counterproductive. And the $13 billion per year thrown away to push the public in the wrong direction far outweighs any amount the Cons can hope to save by nibbling away at the edges of public spending now.

No comments:

Post a Comment