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Complete waste of journalism resources on this story. You reveal nothing new about the fiscal situation, show 10 secnds of the interview you conducted, which lso had no insights (I don’t remember anyone ever even asking if Flaherty was planning to leave) and then try to apease your core viewership wth more fiscal restraint calls despite the Government already making commitments to keep growth in program spending at half the rate of economic growth for the economy (see the fall 2012 Ecnomic and Fiscal Update, though I shoudn’t have to tell you thatas you are jounalists and should be capable of findig these types of sources easily).
The main thing none of the fiscal hawks on your network understand is that by cutting government spending, you actually cut GDP growth and since that is calculated through a combination of consumption, investment, government purchases and net exports (currently we have a trade deficit so this portion is negative as well). If you cut the level of expenditure by government, the data on the economy ends up showing declines in total output, freaking out markets and causing investment panic particularly if the economy has not returned to full productive capacity (which, according to the Bank of Canada, won’t happen until Q3 of next year). Second, most of the spending of governments is provided through business subsidies by either grant programs for industry, personal transfers such as tax credits to citizensand corporations, or procurement contracts that stimulate the private sector. Cut any one of those and you face a firestorm of political controversy, as well as reduced overall income for households, businesses and governmnt employees, creating more knock on recessionary impacts.
Is it worth the political capital of the Finance Minister to make those cuts to satisfy a voting bloc of people who would already choose to vote for the Tories anyway given their long held hatred for other political parties? Nope. You should take your own advice Sun News an stop spending money on this type of knee jerk, ideologically biassed and overall useless political commentary.