Federal government expects $32B more in red ink as it creates new bank to invest $81B

[OMG!WTF!]

I like this article

http://www.cbc.ca/news/business/fisc...tion-1.3830856

The money isn't in bridges and roads. It's in intellectual property. There isn't much help for start ups nor are regulations making anything easier.

[GirlySports]

i agree with GGG. Harper unnecessarily cut the GST, nobody was really complaining about it. Trudeau should raise it back up to 7%

[Alpine Fisher]

Originally Posted by OMG!WTF!

I like this article

http://www.cbc.ca/news/business/fisc...tion-1.3830856

The money isn't in bridges and roads. It's in intellectual property. There isn't much help for start ups nor are regulations making anything easier.

That article is Liberal Propaganda.
A government has never spurred economic growth by investing in intellectual property.
You want to spur economic growth? How about trying to get some pipelines approved / built, how about not implementing a carbon tax? How about reducing corporate and small business taxes? How about green lighting some major infrastructure projects to help get goods and services moving?

Instead, the Liberal government is shipping our hard earned tax dollars overseas to other government to help develop their economies.

The Trudeau government is nothing but a Globalist bunch of hacks.

[ken0042]

Originally Posted by Alpine Fisher

Where is our infrastructure money for the Green Line LRT?

Just waiting for the province to commit their 1/3. The feds and the city have already committed their 2/3.

[CliffFletcher]

Originally Posted by Jacks

We are racking up staggering amounts of debt very quickly federally and provincially and most people just seem to shrug their shoulders. Stop the madness.

What scares me is this is all being done on the premise that we're at the bottom of a growth cycle and the economy just needs a stimulus.

But what if demographics and global economic stagnation mean this is the new normal? What if the next 20 years in Canada will look like the last 20 years in Japan, with 1-2 per cent growth? Does anyone in Ottawa have a plan for restructuring our public services for a zero-growth economy, or is the plan to just ramp up immigration dramatically and spend money the government doesn't have out of desperation to keep the wheels turning?

[Locke]

Originally Posted by ken0042

Just waiting for the province to commit their 1/3. The feds and the city have already committed their 2/3.

Since when did the NDP get cold feet writing Government cheques? They usually bang those out before breakfast, or does Ol' Joe have to make another embarrassing public speech about deficits again already?

Originally Posted by CliffFletcher

What scares me is this is all being done on the premise that we're at the bottom of a growth cycle and the economy just needs a stimulus.

But what if demographics and global economic stagnation mean this is the new normal? What if the next 20 years in Canada will look like the last 20 years in Japan, with 1-2 per cent growth? Does anyone in Ottawa have a plan for restructuring our public services for a zero-growth economy, or is the plan to just ramp up immigration dramatically and spend money the government doesn't have out of desperation to keep the wheels turning?

What does it look like they're doing right now?

[EldrickOnIce]

Originally Posted by Alpine Fisher

Where is our infrastructure money for the Green Line LRT?

I think it went instead to extending the metro from downtown Montreal to the Trudeau Airport

[calgarygeologist]

Originally Posted by Locke

Since when did the NDP get cold feet writing Government cheques? They usually bang those out before breakfast, or does Ol' Joe have to make another embarrassing public speech about deficits again already?

They aren't just going to sign over a cheque to Calgary without a high level of certainty that it will buy them votes.

[Flash Walken]

Originally Posted by GirlySports

i agree with GGG. Harper unnecessarily cut the GST, nobody was really complaining about it. Trudeau should raise it back up to 7%

Don't you know Stephen Harper was an economist?

[IliketoPuck]

Originally Posted by Flash Walken

Don't you know Stephen Harper was an economist?

And Trudeau was a drama teacher and former part time ski instructor. What's your point?

[Cappy]

Originally Posted by Flash Walken

Don't you know Stephen Harper was an economist?

I think this goes to the point of Corsi's comment. There will always be a party willing to spend more (or cut taxes) to push the other party out.

The Martin liberals, riding an economic boom, had 10 billion surpluses which irked voters. The conservatives capitalized by campaigning in tax cuts and won because of it.

An interesting tidbit about the GST cut. The cons originally wanted and income tax cut (Harper is an economist who is well aware of the benefits of sales taxes over other forms of taxes) but focus groups and strategy meetings dictated that a gst cut would provide more oomph to their campaign. It was sexier to cut 7% to 5% rather than a series of income tax cuts over various brackets.

[CroFlames]

I liked the cut in GST to be honest. In fact, I'd like to see 0% GST and the provinces can set their own sales taxes.

[zamler]

Originally Posted by GirlySports

Trudeau should raise it back up to 7%

#### that. We are taxed enough the problem is government spending and misuse of funds.

[Cappy]

Originally Posted by Azure

Infrastructure spending is obviously important, but I think they should invest a lot more into Canadian manufacturing. Lots of small/medium size manufacturing plants that could really expand if they had access to some grants and resources. 10 years from now you could have a much bigger manufacturing footprint.

Hell, get a growing company with huge demands like Tesla up here.

How do we get Tesla here?

We can't just throw money at manufacturing and hope for the best.

You need to create an environment where businesses (including manufacturing businesses) want to invest. The most effective manner of doing so is providing a low tax environment with effective and efficient regulation with great infrastructure and workforce.

Bridges and roads and trains are great for citizens but they are also great for businesses. They provide cheap and efficient access to markets domestic and abroad. They help keep the bottom line.

Also, it goes without saying, but consistency is key. Minimal threat of changes to these environments help companies invest long term.

Limited Tariffs and free trade is also pretty important. If I'm a US manufacturer with a steady base of clients in the EU, maybe i look at expanding my operation into Canada to skirt tariffs on my goods.

http://news.nationalpost.com/news/ca...nada-price-gap

[Flash Walken]

Originally Posted by CroFlames

I liked the cut in GST to be honest. In fact, I'd like to see 0% GST and the provinces can set their own sales taxes.

I hope you're not also one of those people that thinks there are too many trade barriers for inter-provincial trade...

[GGG]

Originally Posted by zamler

#### that. We are taxed enough the problem is government spending and misuse of funds.

We are at the point of lowest taxation in our history.

[Handsome B. Wonderful]

Originally Posted by GirlySports

Harper unnecessarily cut the GST, nobody was really complaining about it.

My BS detector just exploded. People have been complaining about it since 1991.

[rubecube]

Originally Posted by Handsome B. Wonderful

My BS detector just exploded. People have been complaining about it since 1991.

So what? People are idiots. BC rolled back the HST and went back to the PST on the basis of public opinion, despite the fact that it went against basically every single bit of expert advice from economists.

[Handsome B. Wonderful]

Originally Posted by rubecube

So what? People are idiots. BC rolled back the HST and went back to the PST on the basis of public opinion, despite the fact that it went against basically every single bit of expert advice from economists.

Thank you for confirming my point. People do complain about the GST.

[puckedoff]

I disagree with their approach here, although I know most economists will agree. I just don't think that borrowing costs are holding projects back from proceeding right now. The fact is that debt is cheap, there is plenty of money on the sidelines. Whats missing from the equation is projects that deliver ROI, and that isn't fixed by throwing money around.