government spending

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This past weekend, Finance Minister Jim Flaherty encouraged the G20 countries to rapidly implement their stimulus packages, highlighting that his government provided a greater stimulus budget than the G20 countries agreed was needed. While that may be so, his government's 2009 budget also turned back the clock on Canada's 15-year record of sound fiscal management and set the nation back down the path of larger, more interventionalist government.


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Earlier this week, Finance Minister Jim Flaherty wrapped up his cross-country pre-budget consultation trip in search of recommendations for the upcoming federal budget. Most interest groups, economists, and activists are calling for massive increases in government spending to 'stimulate' the economy much of it directed at their own pet projects or industrial sectors.


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If Canadian businesses want help to offset the negative effects of a high Canadian dollar, they should lobby Canada's governments to end corporate welfare in exchange for a dramatic reduction in corporate taxes. They would find the tax relief dramatic, given how much federal, provincial and municipal governments now spend on business subsidies.