Budget Day

Here in Canada the delivery of the Federal budget is a big deal. Even more so during periods of minority governance where the governing party does not have a majority of the seats in Parliament meaning they have to secure support of one of the other, opposing parties to pass the budget. And in our parliamentary system of government the budget bill is considered a confidence vote so failure to pass means we go to the polls.

So yesterday our Minister of Finance, Phillipe somebody or other went out and bought a new pair of shoes. Apparently it is reported that he actually had a new pair made from a boot company in his Quebec riding. Certainly a bright spot in what is otherwise likely to be a rough week.

As I have already been told by my sister, until recently a senior aide to our Chief Medical Office Dr. Tam, the coming cuts on top of the already announced ones are going to be brutal to the civil service in Ottawa. Upwards of 20% in some departments I am told and am reading. Sadly with the increase during covid af the federal workforce this still leaves us with more than we had prior to 2020. I recognize these statistics represent actual families and the loss of income this represents for them is problematic.

At the same time though these positions do not generate revenue for the country thereby making it stronger. Certainly there are federal positions that are very important, but as an example the new department created to decide which projects are of national importance is make work for liberal party faithful. In no way do these high paying positions add to the gross domestic product of our nation.

The projections of what the deficit could be in the upcoming budget range from 70 to over 100 billion dollars which would referent the largest unfunded expenditure of government outside of wartime or health crisis. To suggest we can afford this without dramatically growing our resource or industrial base is simply untrue. Trying to ‘grow’ through immigration is counter-intuitive and the results of this are showing everywhere across our country.

The costs of growing through immigration only add to the deficit with direct payments to these new folks. Reduced taxation due to a growth in minimum wage or low wage employment. Dramatically increased costs for serb=vices due to increased usage. Crashing healthcare, exploding housing costs all of which are tied to these immigration increases. Not to mention the influx of immigrant crime which is being dramatically under reported here as it is in other countries as well.

But back to the budget. Apparently as well Mr. Carney is going to introduce a ‘new’ accounting method for the federal government to hide some of this fiscal imprudence. By dividing spending into operating and capital silos he can claim to have reduced or eliminated the operating deficit of the country and tell us that costs for projects and defence are ‘investments’ that increase the capital value of the country.

What does not seem to be spoken of in the numbers are the big nation building projects that will actually improve the lives of our children. Some of the talk is how our youth must anticipate tightening their belts. Of difficult times ahead. This is the first time in my memory that a government was telling its citizenry that less is the way of the future. I recall this was the later term messaging from Obama ofter the hopey change message of the first of his elections.

Sacrifices are what will be needed to move this country forward. That’s the message Carney is telling the youth of Canada. Not that our youth have sacrificed already. Living in the basements of their parents, not being able to find jobs they sdpend four years and countless dollars preparing for in university and college. High school student hut out of the starter jobs we all expected to have when we were kids. Working at your local Tim Horton’s or McDonalds used to be a right of passage. Today you cannot get a job there if you are a high school kid.

Our country is failing our youth. And no where in the talk leading to the budget does there seem to be anything regarding hope for Gen Z or Millenials. Except a lifetime of hard work and 400 sq/ft apartments. Maybe somewhere in today’s announcement there will be some good news. I am certain that CBC and CTV will be spinning hard to tell us how good this budget is for us.

But closing the day with 70-100 billion dollars in additional deficit spending with no growth plans only means ruin for this country and its youth.