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Originally Posted by directfiesta
Liberals have been good for the economy.
But let's not forget the world economy, mainly the reduction in interest rates.
If the rates today were the ones of 12 years ago, you would have a deficit 
BTW, I didn't see lower taxes ... nor the GST dissapear as promised .. I am probably asleep at the switch  |
If you didn't see lower taxes, you're not running a business and making tons of money. But even the poor got tax breaks.
So about the deficit, how do you explain we're the only country in the G8 with surpluses 8 years running? Why is the US knee deep in deficits now? The more you borrow, the more the interest will rise in the long run.
read this: "Over the past two decades, it appears that the Canadian three month T-bill rate increased by at least 50 basis points for each percentage point increase in the current account deficit as a percentage of GDP. There is no guarantee that an impact of this magnitude will hold in the future, but it is a strong indication that lower foreign borrowing by Canada should result in considerably lower real interest rates than those experienced in the past."
Face it: the liberals did a great fucking job.
As for the GST, do we need to go over the reasons why we don't want to run a deficit again? Without GST there's a deficit, higher interest rates, higher taxes, lower standard of living, etc.