Monday, July 28, 2008

Why two months of deficits don't scare me...

It has been reported that the government ran a deficit in the first two months of the year.

While strong fiscal conservatives like myself cringe when we hear this news, it is not, in itself, earth shattering.

The beginning of the year is usually when the lion's share of the spending is sent out, and we haven't seen all the revenue for the year.

We are expecting a 3 Billion surplus this year and until we have 6 months of numbers in, it is impossible to estimate exactly where we stand.

My concern now is that this news will be used by those who should know better to incite the ignorant masses.


"My concern now is that this news will be used by those who should know better to incite the ignorant masses."

You mean like the MSM?
Does John McCallum count as the ignorant mass, because he's been shouting "told ya so" from the side lines. How about the 4 plus bil. telecom auction?
They actually only ran a defecit in April. Back to surplus in May.
Check out the Fiscal Monitor. Most governments have run a deficit for the odd month at the beginning of the year - even Paul Martin.
I can see three reasons for a deficit:

1. Economic slow down.

2. Reduction in GST.

3. Increased government spending.

The first is not the fault of the government. The second I approve of, especially with an economic slowdown looming.

But the third... The government has not done a good job at keeping a lid on spending. Now would be an excellent time to turn that ship around.
Wasn't April also the month when people got this year's bigger Income Tax refunds. I know I did.
You're a partisan weinie. If this was a Liberal deficit you would be claiming that all Liberals everywhere are dishonest.

The jury is still out on Harper and Flaherty and whether they can manage the econmy as well as Liberals. Running a deficit is not a good sign. Sucking $35 billion out of income trusts is not a good sign. Failing to collect the $5 billion back from the Americans for soft wood is not a good sign.
More ignorance from the MSM, We had natural disasters in several Provinces at what is basicly the fiscal yr end.
for anon @9:25

1. Liberal's also ran deficit's in certain months in their term in office. At the end of those fiscal years they ended up with a surplus. The federal government ran a deficit in April and surplus in May. Nothing unusual there.

2. I imagine you missed it in the media that the income trusts had recovered most of their value. Not surprising since msm didn't really seem to think it was newsworthy.

3. $4 billion has been paid back under the softwood lumber agreement. That's $500 million more than the Liberal's had agreed to. And they would have signed that agreement but put it off to use anti-Americanism in the election campaign.

If you want to go around posting it might be a good idea to have the facts straight first.
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