Friday, April 24, 2009

Amen to that

Far too often, the ever-laughable spin that right-wing governments should be seen as fiscally responsible manages to get a free pass from the media. So kudos to Jeffrey Simpson for recognizing the facts:
Deficits are dangerous for liberals, but especially hard for conservatives, to talk about sensibly. A mantra of conservative parties is that deficits are bad, but the way they govern invariably produces deficits, or at least weakens the fiscal position of the government.

This observation is heretical to conservatives and counterintuitive to others, but the evidence in Canada and the United States bears it out.

In opposition, then in office, conservatives promise lower taxes, and try to deliver them, as the Harper Conservatives did with their two-point cut to the GST that cost the treasury about $12-billion.

Having eroded the government's fiscal capacity, conservatives then promise to eliminate "wasteful" spending. When that effort produces meagre results, as it always does, the government either cuts programs (but never enough to make up for the tax reductions) or lets spending proceed apace, as the Harper crowd has done.

Twenty years of Republican administrations under three presidents followed this formula: a political campaign based on lower taxes and an attack on "wasteful" spending, followed by lower taxes but higher spending, with resulting chronic deficits.

Deficits of the kind conservative parties left in Saskatchewan, Ontario and Ottawa (Alberta was the exception because of energy royalties) also suggest that deficits and conservatives go together, rhetoric notwithstanding.

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