Finance Minister Jim Flaherty Presents Government Budget

Today, the federal government revealed its highly anticipated budget and stimulus plan for pulling our sagging economy out of recession. To sum up in one sentence, the Tories are going to spend tens of billions of dollars to try and pump money into the economy, and Canada will have to weather large deficits along the way. Whatever it takes to keep our economy moving was the message from Finance Minister Jim Flaherty.

A deficit of $33.7 billion for the 2009-10 fiscal year and $29.8 billion the following year is predicted. For 2011-12, the red ink would diminish to $13 billion, followed by a deficit of $7.3 billion for 2012-13. Keeping the Conservatives’ track record regarding their forecasts of budget deficits/surpluses in mind, it seems like these numbers could turn out to be much, much larger. Just months ago, Harper was predicting small surpluses for the coming years, then altered his forecast to small deficits, and now massive ones. That leads me to believe these deficits could turn out to be much larger that we think. If the economy worsens beyond what is expected, this would certainly be true. “If they get worse, we will do more,” said Flaherty, speaking about economic conditions in Canada.

The budget dealt with many different aspects of the economy and Canada, but here is an overview of the major categories:
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So what was the big news of the day? “Canadians face a difficult year — perhaps several difficult years,” declared Governor General Michaëlle Jean in today’s throne speech from Parliament Hill.

Are you kidding me?!!?! I would have never thought. Although, now that I think about it, there have been some warning signs.

#5. The downturn in housing markets is still unfolding here in Canada, with reduced credit supply likely adding to pressures.

#4. The auto sector and forestry industry can barely stay above water.
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Today's Speech From the Throne

There’s no doubt the last few weeks in Canadian politics have been fairly boring and uneventful, especially relative to the recent coalition fiasco. But things sure look like they’ll be picking up again, fast.

Today’s Speech From the Throne paved the way for what is sure to be an exciting week in Canadian politics. Although today’s speech was only 4 pages long compared to the controversial November 19th speech 16 pages in length, it was jam-packed and heavily focused on our sagging economy. The exact details of the stimulus plan will be announced tomorrow, but according to today’s speech, massive efforts will take place to boost the economy through deficit spending.

Here’s what we do know about the stimulus plan to be announced tomorrow thanks to leaks from the Conservatives:
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Barack Obama made his first call to Canada today. He discussed many issues with Prime Minister Stephen Harper, which included the economy, the auto industry, energy, the environment, and Afghanistan, according to CBC.
What does this mean for Canada? Well, for starters, it is nice to know that Obama doesn’t just view Canada as the 51st state.
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Honourable Iggy thinks our PM is playing games again.  According to Lord Ig, Mr. Harper has no respect for Parliament because he’s letting a few choice budget details slip out beforehand. Before we all get our shorts in a knot, let’s not forget that this budget slippage scenario was I believe (correct me if I’m wrong) started by none other than … Paul Martin.

Mind you, Paul’s strategy was meant to gently stoke the peace loving natives and booming markets of our great Dominion – in times of plenty. Mr. Harper’s may well be designed to divide and conquer them. A measly $1-billion for displaced workers. Buzz Hargrove wanted that for the auto sector alone. Sure enough, he’s turning the air blue on the phone already.  But who is he talking to?  Is it smilin’ Jack and his blinkered bunch of budget busters. Or is it Iggy – Buzz’s future boss when he finally pursues his political career.

Meanwhile here in Quebec, Gilles Duceppe and Pauline Marois watch gleefully as their approval ratings climb – for doing diddly squat. And Premier Charest looks for another way to suck more dough out of the federal coffers to keep his propped up. God only knows where it all goes. Our provincial health care system is abysmal, our taxes outrageous, water pipes are bursting in air and we’re decades behind the R.O.C. on more than one portfolio.
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With the resumption of parliament only a few days away, most people are at the edge of their seats awaiting the new budget to be announced by Harper. To avoid a vote of confidence, we are expecting as much as a $30 Billion deficit, with spending on infrastructure, tax cuts, and employment insurance. Considering only a few months ago, Harper denied the allegations of Canada even being in a recession; this will be a major step towards fixing the economic hardships which we are all enduring. The idea is to put government spending towards the growth of the lower and middle classes to ensure consumer spending, thus kick-start the economy.

Thirty-billion dollars is a lot of money. What happens if this deficit occurs and no change is done to our economy? Worse, what happens if with this major spending and deficit, our country goes further into recession? Where is this money going to come from? Will Canada spiral further into debt? Could we face the ever growing fear of another depression?

While these questions linger on everyone’s mind, infrastructure plans need to be perfected, spending must occur, but at the same time futile transactions must stop; jobs need to be created. Money must be put into the hands of the consumers. Confidence in not only the economy, but also the corporations and companies that keep it running, must grow. How do we go about doing that? Economists from around the country are working around the clock to figure out plans to ensure the growth of our economy, but they are – in the end – trapped within a box of their own creation, unable to take a step away from it, to gain an outside perspective on things.
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With as many as 4 million people expected to attend the inauguration events today, Barack Obama’s inauguration will be the largest to ever take place. With big screens set up throughout the National Mall area for these people to witness Obama’s inauguration address – one of the most anticipated speeches of all time. Obama’s speech will last approximately 20 minutes and will discuss responsibility and removing the “me first” philosophy, in order to make America a greater country to live in.
To protect Barack Obama, there will be 25,000 security guards, including snipers, police dogs, and air and naval support, as well as 5,000 security cameras.
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Harper is the Cause of the Forecasted Budget Deficit

Liberal Leader Michael Ignatieff lashed out at Harper for the upcoming deficit that is expected as a result of the new budget. Speaking to fellow caucus members this morning, Ignatieff lashed out at Prime Minister Stephen Harper stating that “this deficit is squarely Mr. Harper’s responsibility. He spent us down to the red line in the good times and so we face the hard times as citizens of a great country with the cupboard bare.”

After the Liberals’ decade of surplus budgets, it seems Ignatieff is very angry that Harper and his Conservative government have led us into a recession with nothing to spare. Does the infamous coalition live on?
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Can Harper save the economy with his budget?

Prime Minister Stephen Harper announced some preliminary information on the upcoming budget today. Spending on infrastructure, tax cuts, and revamping the employment insurance program were all discussed as potential methods to revive our economy. As well, a discussion on how the money will be raised, in order to meet these goals, took place. Harper has definitely come an awful long way since denying there were any economic issues just a few months ago.

Will the budget stand its ground against the opposition parties? Based on this announcement, it seems like it can, as long as Harper genuinely intends to include said measures. Harper will also need to think of some creative way to procure the billions of dollars that are needed to see this plan come to fruition.
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CUPE National President Paul Moist denounces Sid Ryan's proposed resolution.

CUPE National president, Paul Moist, released a statement on January 13th calling Sid Ryan’s proposal wrong and discriminatory.

“As the national president of Canada’s largest union, with over 580,000 members, I can say that none of CUPE’s over 2,000 chartered bodies – including CUPE Ontario – have adopted such a resolution. I believe such a resolution is wrong and would violate the anti-discrimination standards set out in the CUPE Constitution. I will be using my influence in any debates on such a resolution to oppose its adoption.”
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