Billions of taxpayers dollars wasted, no results
As we know, Canada is running massive budget deficits. Despite promising deficits of only around $10 billion per year for 3 years, Justin Trudeau’s deficits have exploded, and there is no end in sight.
Of course, as we found during the financial crisis, a budget deficit can serve a good purpose if it is used to stimulate the economy, keep taxes low, and make long-term tangible investments that will grow the economy.
But that’s not what Trudeau is doing.
It turns out that despite the massive deficits, money is not being invested in the infrastructure projects the government promised would grow the economy.
According to the Parliamentary Budget Office (PBO), Only $4.6 billion of the $13.6 billion budgeted for infrastructure has actually been spent.
While this may seem like a good thing at first, it turns out that money is not going back to the taxpayers, and is still adding to the deficit.
Worse, the government had been counting on infrastructure spending to boost the economy, as they projected the infrastructure stimulus would grow our GDP by 0.2% in 2017, and 0.4% in 2018.
But if that money isn’t being invested, it means the GDP growth won’t happen.
Said the PBO, “Because of the gap between funds that have been announced and the value of projects identified, the government is at risk of not realizing this projection.”
Trudeau’s economic “policy” is devastating our country
This is the worst of all possible worlds: Massive deficits, money not being invested, no growth, rising debt, higher taxes.
That is a horrible economic record, and it is going to have long-term consequences for our country.
If the economy was growing quickly, a small budget deficit wouldn’t be a big problem, since the debt to GDP-ratio would be the same. Unfortunately, Trudeau’s policies are leading to increased debt without rapidly increasing growth, meaning our debt burden will get bigger and bigger without any growth to balance it out.
Keep in mind that all of these economic failures have put us in a dangerously weak position relative to the United States. With potential renegotiation of NAFTA on the way, our internal economic weakness puts us at risk of severe economic problems if our trade with the United States gets altered in a way that is less beneficial to us.
Canada needs new economic policies now
Canada cannot continue on the path we are on. Immediate action must be taken to get our GDP growing and strengthen our internal economy from external threats.
As I’ve said before, Canada must immediately enact massive tax cuts for the middle class to stimulate demand, cut business taxes and regulations to make our economy more competitive, increase military spending to boost production, employment, and our national security. And finally – we must cancel the stupid and dangerous carbon tax.
All of those measures will provide us with increased growth, based on stronger domestic demand and stronger external competitiveness. The big government, big spending approach of Justin Trudeau has proven to be totally incompetent and ineffective, and Canada can’t afford it any longer.
Photo – Twitter