Scheer Explains Why Trudeau’s Deficit Comments Are So Dangerous

Says it’s even worse than “the budget will balance itself.”

In the wake of Justin Trudeau’s utter denial of reality and attempt to claim that bigger budget deficits and more debt somehow don’t make an economy more vulnerable when facing a recession, Conservative Leader Andrew Scheer took to Twitter to explain why the comments are so dangerous:

“I’ve seen a lot of comments on Justin Trudeau’s answer to this question. Some are likening it to his infamous “the budget will balance itself” remark. But it’s worse. Here’s why: (1/n)”

“When a recession hits, deficits soar. Government revenues fall because people are earning less and paying less taxes. Spending on EI and other social programs surges. This is Public Finances 101. (2/n)”

“Finance Canada estimates that a 1% drop in real GDP growth will take a $5B chunk out of the budget. That means if you start with a $19B deficit – and a recession like 2009 hits – the deficit could reach $40B. (3/n)”

“And that is before the government spends a penny on extra economic stimulus. Liberals complained the previous Conservative government’s $50B stimulus was too cheap, so you can imagine what Trudeau would do. (4/n)”

“The bottom line is that when the downturn hits – as it inevitably will – the cupboard will be bare and our ability to recover will be severely weakened. If the PM doesn’t understand this, we are in more trouble than we imagined. (5/n)”

“Before the global recession, from 2006 to 2008, the Conservative government paid down $37 billion in debt. This allowed us to come out of the crisis faster and with stronger growth than any other G7 country. (6/n)”

“Budgets don’t balance themselves. And huge deficits and mounting debt don’t mean we’re ready to withstand a recession. The bigger our deficits today, the higher our taxes tomorrow. Canada can’t afford this kind of economic ineptitude. Let’s make a change next year! (7/7)”

Spencer Fernando

Photo – YouTube

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Sean
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Sean

Trudeau still insists the Liberals “created” 800,000 jobs when in fact the employment participation levels are down by 200,000. Hundred of thousands of full-time have been turned into part-time without benefits. Many have dropped off EI after their two year limit was reached and tens of thousands of those re now on social assistance or worse but since they no longer show up on the EI rolls Trudeau claims them as “jobs created”. Despicable.

Moe. S.
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Moe. S.

Trudeau likes to sanitize the ugliness of reality. Canadians need to wake-up, stand-up, and challenge Trudeau’s voice of lunacy. We need to become indignant and offended by his constant bull crap.

Jen
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Jen

As long the paid media keep jihadi trudeau disaster and downfall of canada from the public, the blame will fall onto the next government, this is the liberals’ and media’s plan all along. Andrew Scheer is in for a shock of his lifetime and make no mistake the paid media will rip Andrew and the conservatives to shreds every day for the extreme damage to canada. The media is quietly stacking up all of jihadi justin’s regime mess, corruption, terrorism, illegals mess, everything, into a neat pile to throw it at the Conservatives. It will be so bad, that riots… Read more »

Clive Edwards
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Clive Edwards

So the cat is out of the bag – even Scheer is saying EI is a government supported social program. In truth, EI is an insurance program paid for by Canadian workers and their employers. It is administered by the government because that makes it opaque that the funds are not sequestered but are co-mingled with general revenues and used for other than the intended purpose. If the government wants to pay down the debt it should seize the personal assets present and past prime ministers and other government ministers have placed in tax havens, out of reach of the… Read more »

Mike Allan
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Mike Allan

To honest we conservatives need a voice that will listen to all of our concerns and not take it upon,his judgment as always being right.Remember Scheer was in favour of the Paris climate agreement and that’s a costly error in judgment.There a few others so law abiding conservatives be aware that getting another Mr Harper won’t be easy but still alittle time left.As for trudope I expect nothing of mindful thought from a globalist dictator.