Why spending won out

March 2, 2018   ·   0 Comments


IF NOTHING ELSE, the federal budget brought down Tuesday by Finance Minister Bill Morneau demonstrates a belief that new program spending is more popular than tax cuts or balanced budgets.

And in the case of working toward nationwide pharmacare at a time when millions of Americans are losing access to affordable health care, we think the popularity of that program will be truly widespread.

For some reason, both The Globe and Mail and Toronto Star saw the big news as the absence of any path toward a balanced budget, with Mr. Morneau predicting continued deficits of slightly under $20 billion that will soon see the government’s debt climbing close to $400 billion.

Our suspicion is that while some experts will repeat warnings about saddling future generations with massive debt loads, others may see the current and future deficits as trifling by comparison with the $1-trillion deficits predicted for the U.S. in the wake of the Trump adminisdtration’s huge tax cuts for corporations and the wealthiest Americans and huge boosts in defence spending.

And with an election coming in 2019, maybe that will be the time for tax cuts.

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