Thursday, 21 April 2011

The NDP CAN manage the economy

NDP can manage economy
This article came out before the election in 2008. Shortly thereafter, the Harper Conservative government orchestrated the worst mis-management of the economy in the history of Canada. History has shown that the Conservatives are worse (especially the Harper Conservatives) at managing the economy, contrary to what the MSM is constantly telling people.
History also shows that the NDP, contrary to what the MSM is constantly telling people, is the best at managing the economy.

The article from the link above:
(Originally from The Ottawa Citizen, by Elaine Gibson, Oct. 8, 2008)
(Emphasis here is mine.)

Conservatives have the reputation of being the good financial managers, while people believe that NDP governments cannot manage the economy.

Yet a federal finance department analysis of federal and provincial governments over a 22-year period reveals a very different picture: New Democrat governments have balanced their books 46 per cent of the time while Conservative governments have only had 35 per cent balanced budgets and Liberal governments 21 per cent. Why does the belief persist that New Democrats do not have credibility on the economy?

First, there is the impression that expenditures that help ordinary people are frivolous -- unemployment insurance benefits, housing, child care, education and other social programs. Liberal and Conservative governments have cut all of these. Since the NDP is strong on social programs, it is suggested that the NDP "spends too much" but they have had strong supportive programs while still balancing the budget, as demonstrated for the last 11 years in Manitoba.

The Conservatives frequently repeat that the NDP will raise taxes, but the NDP promise is really they will not carry through with proposed Conservative corporate tax cuts for 2009 to 2013.

Second, people don't take into account that lowering government revenue is the same as spending. The $40 billion in tax cuts over the last two years show up on the debit side of the ledger along with expenditures, not counting the proposed $50 billion corporate tax cuts. The late NDP leader David Lewis coined the term "corporate welfare bums," which still applies today. Small businesses and people with low to medium incomes spend most of their money in the Canadian economy; money in the hands of big corporations may be invested outside Canada, including jobs. Conservatives count on a trickle-down effect for jobs but there are no guarantees.

Conservatives constantly refer to the Bob Rae government, even though there are Conservative examples of worse deficits (e.g. Brian Mulroney or Grant Devine in Saskatchewan). Stephen Harper now muses that a deficit might be necessary (because he will not give up on tax cuts), while Jack Layton would rather give up some of his "kitchen-table priorities."

It is Conservative-style economics that have driven the United States into its hole -- tax cuts for the wealthy, a resistance to regulating their big business and banker friends and excessive expenditures, particularly military spending. Mr. Harper has greatly reduced the federal budget surplus for any future government. Believing as he does in his conservative ideology, how can we trust him with an economy moving towards recession? He might continue to help out big corporations, but there will be a shrinking safety net for the rest of us?

Report shows NDP has best balanced budgets record

OTTAWA - Provinces with New Democrat governments are more likely to have surplus budgets than governments of any other political party, a new report from the Government of Canada indicates.

At a time when the Harper Conservatives are projecting a record $56 billion deficit, the report shows that New Democrat governments have been, and continue to be strong financial managers, while delivering a better quality of life for ordinary people.

The numbers speak for themselves:

New Democrat governments produced budgets that were in surplus 51 percent of the time covered by the report.

Conservative governments ranked second, while Liberal governments fell far short; producing surplus budgets only 30 percent of the years they governed.

Included in the strong record of New Democrat fiscal management is the Romanow government who dug-out Saskatchewan from years of deep Conservative deficits, as well as eight balanced budgets in Manitoba under former-Premier Gary Doer.

The Fiscal Reference Tables are produced annually by the federal Department of Finance. The report for 2008-09 was released on Friday

Budgetary surpluses or deficits by party
(1986-87 to 2008-09)

Party Years in
Years in
Years in surplus
(as percent)
NDP 53 26 50.94
Conservative 124 61 50.81
Parti Quebecois 8 4 50.00
Liberal 91 64 29.67

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