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What Harper Could Do With the Budget -- But Isn't

Posted: 12/04/2012 5:48 pm

The Harper Conservatives will force another odious "Omnibus Budget Bill" through the House of Commons this week.

A lot of attention is rightly focused on the anti-democratic nature of their "omnibus" procedure, choking off debate and forcing MPs to deal with 50 or more unrelated issues all at once in a single vote. As a result, that final vote is totally meaningless.

But even worse, for all the verbiage in this legislation (more than 400 pages, some 250,000 words), the Conservatives are doing little of consequence to deliver what the Canadian economy really needs -- more growth and less inequality.

In fact, this government is moving in the opposite direction.

Mr. Harper's ideological obsession with austerity drives him to cut the federal government at every turn to make it as irrelevant as possible. The most vulnerable (veterans, seniors, low-income families, the unemployed, newcomers, etc.) are typically the hardest hit. And his cuts risk further weakening the economy by curtailing aggregate demand at a time when Canadian growth is already faltering.

Yes, the federal government must always demonstrate strong management and fiscal prudence. There is never an excuse for waste. But Canada does have a fiscal ace-in-the-hole that gives us some policy flexibility for times like these, and that's our federal debt-ratio.

That ratio compares the size of the federal debt to the size of our economy overall. In the mid-1990's, after 25 consecutive years in deficit, Canada's federal debt-ratio had soared to a paralyzing 70 per cent. In other words, accumulated debt was equal to 70 per cent of the Gross Domestic Product. Thanks to essential decisions by the Chretien/Martin governments, that ratio was more than chopped in half -- down below 35 per cent.

That's what gives Canada some room to maneuver today. We should utilize some of that flexibility to invest in growth and combat inequality.

To start, the Harper Conservatives could stop escalating EI payroll taxes. They claim they don't raise taxes, but that's actually a lie. They are hiking payroll taxes by as much as $600-million each and every year, and that kills jobs.

Secondly, they could make federal tax credits for kids, caregivers and the disabled equally available to all Canadians. The way these credits are structured, people below a certain income level are not eligible. More than nine million low-income Canadians are deliberately excluded. That's perverse and should be fixed.

The government could amend Registered Disability Savings Plans (RDSPs) to correct the current discrimination against those who have been diagnosed with gradual, debilitating conditions like Multiple Sclerosis. They may not be fully disabled today, but they know their future prognosis is problematic. They would like to build some financial security, while they still can, but the rules say "no" -- you have to be fully disabled right now to open an RDSP. Such rigidity is mean-spirited and short-sighted.

The government could focus on first-time jobs for young Canadians who are still struggling with unemployment rates at recession-like levels near 15 per cent. Some 250,000 fewer young people are employed today than before the recession. Another 165,000 have just given up.

The government could help families better cope with the high cost of post-secondary education, through interest relief and more grants than loans.

Squarely within federal jurisdiction for Aboriginal education, the government could remove the "2% cap" that restricts First Nations' access to post-secondary learning. In the K-12 system, the federal government needs to bridge the disgraceful gap between what they invest to educate a First Nations child on-reserve and the much higher amounts that provinces invest to educate each non-Aboriginal child.

The government could also get serious about affordable housing.

They could transfer the entire federal gas tax to local municipalities to help build community infrastructure.

There are many pro-active options to encourage growth and combat inequality, but the Harper government remains indifferent -- paralyzed by ideology, content with mediocrity.

 

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The Harper Conservatives will force another odious "Omnibus Budget Bill" through the House of Commons this week. A lot of attention is rightly focused on the anti-democratic nature of their "omnibus...
The Harper Conservatives will force another odious "Omnibus Budget Bill" through the House of Commons this week. A lot of attention is rightly focused on the anti-democratic nature of their "omnibus...
 
 
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TonyOnly
Truth matters.
11:14 AM on 12/05/2012
The Harper Conservatives are owned and operated, lock, stock and barrel, by the North American oil industry.

The reason the HarperCons ram these massive Omnibus Budget Bills through in the dead of night, is because the want to keep the electorate in the dark.

And it's worked very well for them and their oil industry partners. The Canadian economy as a whole? Not so much.

But they can always blame the Eurozone. And unfortunately, too many people can't tell the difference.
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Nadine Lumley
unseatHarper circle ca
10:45 AM on 12/05/2012
Harper’s Neoconservatism: This entire “hard right” movement is a crock. It is not a religious evangelist movement, OR a Christian moral movement.

It is a corporate movement.

http://pushedleft.blogspot.com/2010/11/democracy-for-sale-and-my-epiphany.html
From Emily Dee:
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Nadine Lumley
unseatHarper circle ca
10:44 AM on 12/05/2012
Repost from Chris Hedges (Pulitzer Prize winner and former war correspondent for the New York Times) on Canada’s right-wing neocon Prime Minister Stephen Harper:

Harper is a poster child for corporate malfeasance and corporate power, just sort of dismantling everything that’s good about Canada. So he’s the kind of species that rises to political power and is utterly subservient to corporate interests at the expense of the citizenry.

Yeah, he’s a pretty venal figure.

http://www.straight.com/article-732826/vancouver/chris-hedges-harper-venal-us-politics-totally-rigged
.
10:37 AM on 12/05/2012
These all sound like fine ideas, but they also sound expensive. As you know, the Conservatives have severely damaged Federal revenues through their ill-advised GST cuts and tax credit bribery. How will you pay for these programs? Wiggle room or no, further increasing the deficit does not sit well with me. According to Kevin Page, Harper managed to put us in a structural deficit *before* the recession even hit (and now uses that self-inflicted problem to justify his cuts). Are you willing to raise the GST by 2%? Are you willing to cancel the multitude of absurd tax credits Harper introduced? Are you willing to campaign on that?
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AuntiFascist
Orwell predicted Harper
08:32 AM on 12/05/2012
Harper is a social conservative trying to reengineer Canadian values. He isn't a good money manager, planner, budgeter, manager of people, or spender. He touts his belief in business but isn't qualified to lead a small department.

His lack of budgets and plans isn't surprising. Harper is more interested in abortion, gun control, Israel, and destroying the leftists, liberals, and do-gooders in the environmental sector. He is a Reform politician and NOT a Conservative.
09:17 AM on 12/05/2012
The problem is that based on your definition of the 'classic" conservative, there is no "real" conservatives on the rigth anymore. They are all in the liberal party.

The fact is that what people naively idolize as "real" or "true" conservatives ignores reality. When was the last time a federal conservative government hasn't wracked up tons of deficits and debt? Or enacted policies that overwhelmingly favor the rich and increase wealth inequality? Conservatism was born on issues like heirarchy and ruling classes and segregation of one form or another.

This ideal "real" conservative that I keep hearing about is nothing more than a false idol. Something that doesn't really exist, but is still used by the base to excuse the failings of a political side they have pledged loyalty to.
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Colin Speth
A Claymore for your thoughts
08:42 PM on 12/04/2012
Or better yet the gov could spend a billion on universal child care like the Liberals proposed last election. Remeber that Ralph ?
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cheaperskate
11:53 PM on 12/04/2012
Yes, it would have taken some people of the dole and given them jobs and allowed single mother to find jobs and get off the dole.

Oops,just realized what I said. Since there now so few jobs, the unemployment roles would have gone up because more people are looking for work.
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maple matters
Nimi Icinohabi
11:41 AM on 12/05/2012
'the Conservatives are doing little of consequence to deliver what the Canadian economy really needs -- more growth and less inequality.'

then why don't you address that in your article Ralph? Instead of critically analyzing what government is proposing that is 'of little consequence' you instead rehash the ridiculously naive wish list of the Liberals. How easy to criticize and suggest from the back of the room eh Ralph? Funny that our economy is at the top of western nations and exceeding most others in growth. Your victim mentality is showing... again.
06:12 PM on 12/05/2012
Sorry read the news, our economy is going to stagnant and has fallen behind the US in growth. Gosh this was out just this week, how did you miss it. We can't just concentrate, as the West Loving Harper does, on oil. We need to diversify and not just rely and resources.
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08:29 PM on 12/04/2012
Hey Ralph, Harper could also set up an add program to benefit communication firms tied to the Conservative party in the name of national unity! Would that be a budget item you can approve?
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cheaperskate
11:48 PM on 12/04/2012
And he could call it Canada's action plan.

Oops he already did that.
07:52 PM on 12/04/2012
Any politician who used the word "inequality" has got my attention. Things have gotten far too unequal, we are creating an unfair society, with younger people on the losing end.
09:23 AM on 12/05/2012
Not just young people but the entire economy. Rising inequality, mostly caused by conservative policies (enacted by both sides, the liberals did more than their fair share of pro-business policy as well) creates what I call the Jenga economy. An economy that politicians can brag about how great it is doing, and how much it is growing, but is built entirely on a shaky foundation of taking from the bottom and giving to the top.

We all know how a game of jenga ALWAYS ends...collapse. Policies like this not only hurt the economy through increased wealth inequality, but makes them unsustainable in the long term as jobs are lost, wages are suppressed, etc. These are problems that are extremely difficult to fix. Especially if political "leaders" are too afraid to take the drastic steps necessary to change the economic direction of the country. Mostly they just try sticking bandaids on it hoping nobody will notice.

Just look at the US as an example of politicians thinking they can dig their way out of a hole because they are too afraid, or institutionalized to believe that business and corporate interests must always be protected no matter what.
06:08 PM on 12/05/2012
I totally agree with your comments. I read an interesting quote today "everyone counts or nobody counts". The first part of that used to be what our society was about and that has been lost.
07:26 PM on 12/04/2012
Mr. Goodale is spot on in his comments. Hope you are going to be a BIG presence in the next Liberal government, which hopefully is soon. We have to get rid of Harper and God help me I just can't see the NDP leader as PM. I think he would be a left type of Harperite - so we'd go from worse to just bad.
09:24 AM on 12/05/2012
Yeah, it's unfortunate how much the fate of the NDP rested on the shoulders of their previous leader. Now that he's passed, the party seems directionless and useless and irrelevant.

However, having said that, I'm pretty sure Muclair's current interim leadership was put in place only so long as he didn't then run for leader officially. So he won't be PM any time soon.
08:01 AM on 12/10/2012
What are you talking about? Mulcair is official leader of the NDP and not interim. The team assembled by Layton is still there and so is the talent to run this country. What are the important issues today? Nexen sell out was opposed by the NDP and endorsed by the Libs. Is this what you fight for?
The NDP is up against the most distrustful and dirty government in the history of Canada put there to sell us out to any foreign investors that want our resources. Democracy is dead in parliament with Con majority and no opposing party can do much about it until the next election.
You must be a Greenie that will follow one MP into the promised land.
05:57 PM on 12/04/2012
Some reasonable comments from a Liberal. Too bad Goodale doesnt run for the leadership