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Originally Posted by GGG
This is a good post but using the word “Left” to describe these government entities is a misnomer from an economic point of view. There are no economically left governments right now. Have you seen the creation and expansion of government owned industry? Increases in public sector spending as a portion of GDP outside of Covid? I dont really think “the fiscal left” exists.
There is a case for the social left certainly but to frame it as the left now believes in free trade isn’t quite correct. The left no longer exists economically
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Biden’s $1 trillion infrastructure bill is the biggest public spending bonanza in decades. The student loan amnesty was a $300 billion public gift to core supporters. He’s proposing to increase the corporate tax rate to 28 per cent.
In Canada, Trudeau rolled back Harper’s planned increase to the age for OAS eligibility, and mandated increases to CPP contributions. We’re also going to see Canada follow suit with massive public spending on green industrial subsidies.
We certainly don’t hear anyone on the left or centre-left today calling for restraint in government spending.