Sunday, September 14, 2008

Defeating the Deficit Lie

While this lie is not as old as the hidden agenda lie, it is pretty much as prevalent.

The Liberals with their weak as a kitten leader have not much to show for the first week of campaigning. A late plane, and little movement in the polls despite the vaunted war room's best attempts at given the Liberals an advantage.

A common lie or should I say falsehood circulating the blogosphere is the notion that Canada is in a deficit position.

A common rallying cry is "conservatives=deficit".

Some bloggers even manage to insert the "evil hidden agenda" nonsense into this as well.

Well the only real way to counter this is to shine the light of truth on where ever this lies are being fabricated. When ever and how ever they occur.

Repeat after me:
We are not in deficit. We are not in deficit. We are not in deficit. We are not in deficit. We are not in deficit. We are not in deficit.

Ok, so you want proof?
The Conference Board analysis comes after the Department of Finance reported Friday a $1.2 billion surplus for the April-June quarter, down from $5.6 billion last year. And although revenues fell $1.1 billion due to a lower take from corporate taxes and the GST, personal income tax receipts are more than holding their own.
See, a Q1 surplus.

And the Conference Board of Canada says:
The private sector think-tank says higher-than-projected inflation, along with other factors, have boosted government revenues and almost completely countered the impact of slower growth and tax cuts that went into effect in January.

And other economists have also confirmed it:
Several other economists, including Dale Orr of Global Insight Canada, have also recently dismissed fears that Canada's slumping economy - which many now believe could grow at half the rate of the budget's 1.7 per cent working assumption - will result in the first federal budgetary deficit in more than a decade.

People also like to equate the current Conservatives with Mike Harris and the deficit that he supposedly left.

Mike Harris retired April 15, 2002, when he retired there was a budget surplus:
In 1999-2000 Ontario recorded a $668 million surplus, balancing the budget one full year ahead of the schedule laid out in the government's Balanced Budget Plan. With a $3,325 million surplus in 2000-01 and an interim surplus of $58 million for 2001-02, Ontario has now achieved three consecutive budget surpluses for the first time in nearly 100 years.

When Ernie Eves succeeded Mike Harris as the Premier of Ontario, Jim Flaherty was not reinstated as the Minister of Finance. That means that Jim Flaherty left the province of Ontario with a budget in surplus.

In summary, the facts proven in this post are:
  1. Canada is not running a budget deficit
  2. Economists are predicting larger then forecast surpluses
  3. Mike Harris did not leave the province of Ontario in a deficit
  4. Jim Flaherty did not leave the province of Ontario in a deficit

We're better off with Harper.


Anonymous said...

They even take it back further than that, blaming the deficit of the '90s on Mulroney instead of Trudeau where it belongs.
When Mulroney was voted out, the 'operating deficit' was gone. It was the interest on the huge debt that was contributing to the overall deficit.
Without the GST, free trade and the other groundwork laid by the tories, the Liberals didn't have a policy, a plan or a chance in hell of eliminating the deficit.

AnonymousCoward said...

Good point Wayne.

Of course the interest in the 80's was crippling as well. No one could have slayed that deficit/debt at that time and place.

Anonymous said...

Here's the other big lies.

Child obesity is caused by Poverty and we must increase the Welfare rates.

Cold weather is the first sign of Global-Warming .

CO2 is a Pollutant and not food for plants that turn it into Oxygen.

Poverty creates and breeds criminals , and abortions have lowered the crime rates.

Chretien and Martin were too stupid to be held responsible for the missing $140 Million dollars stolen by Liberals during 2 federal Elections.

Low unemployment rates cause more homeless people .

Shal I go on...???

AnonymousCoward said...

Child obesity is caused by Poverty and we must increase the Welfare rates.

That is a common one. There is something inherently wrong in a society where the poor people are fat.

People chalk it up to a lack of education, but that is bunk. Nutrition is taught everywhere. Schools, communities, everywhere.

Anonymous said...

Wasn't the last year of surplus in Ontario due to the fact that they'd just sold the 407 though? Can't remember how much that raised, (3.5 billion?) but that was a huge one-time gain in revenues. Without it we would've left ontario in deficit, no?

Alberta Girl said...

Ol' McCallum was on MDL pontificating how the "first half of the year" saw the Tories heading to a Deficit.

Um yeah Johnny, good thing we look at the WHOLE year, isn't it.

Talk about spreading false information.