Wednesday , April 21 2021

Bill Kelly: Trying to understand the hyperbole of the federal budget – Hamilton

Finance Minister Bill Morneau unveiled the government's economic update on Wednesday. For all intents and purposes, it's a mini-budget, minus the details.

I'm not going to bore you with all the numbers that were released because, frankly, that material has become a white noise for most Canadians.

Canada has the "capacity" to deal with a recession, despite the continuing deficit: Morneau

But the political game that accompanies budgets is always quite interesting.

The government tells us that yes, they are increasing the deficit, but it is to give Canadian companies a better chance to attract foreign investment and to be competitive with their American counterparts.

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History shows that we have tried this before with a minimum of success, but, what the heck, let's take another chance.

It is clear that conservative opponents denounce the budget and protest against the government for incurring deficits.

But this is more than a little hypocritical since the Harper administration gave us 10 years of deficits and increased the national debt to the highest level in Canadian history.

In this age of political hyperbole and unstable fiscal policies, no one has the high morale when it comes to the country's finances and keeping campaign promises.

Conservatives are quite correct when they accuse the Trudeau administration of failing to deliver on its promise to eliminate the deficit, but with the lowest unemployment rate in 40 years and business profits and rising wages, that broken promise is paying big dividends.

It may not be the most prudent long-term tax plan, but most Canadians are more concerned with the here and now, and in that context, so far, so good.

Bill Kelly is the host of the Bill Kelly Show on Global News Radio 900 CHML

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