February 07, 2017

Bad news for Canada in Fraser Institute report: Junior follows Trudeau Senior’s path

Brian LilleyArchive

Nostalgic Canadians, especially baby boomer journalist types, had such fond memories of Pierre Trudeau and his time in office. With rose coloured glasses, they talked about how he put Canada on the map completely forgetting our key contribution to WWII and the building of the post-war international order.

For nostalgic types, it was all sunshine and lollipops with Trudeau in power and would be again once Pierre’s son took his rightful place on the throne. He’d restore Canada from that ghastly mean Stephen Harper who isolated us on the world stage, they said, completely ignoring that Harper and his crew were leaders of the combined global response to the 2008 financial crisis.

It was Harper, his then finance minister the late Jim Flaherty and Bank of Canada governor Mark Carney that were steering many of the international committees that tried to quell the chaos caused by bank collapses in the United States and Europe.

But like father, like son - the two Trudeau’s and their legions of admirers don’t care about facts as they march down amnesia lane to revel in how great the last Trudeau era was. They care about feelings.

How about this for a feeling - Canadian government debt so high, spending so out of control, inflation through the roof with a recession in Canada far worse than elsewhere and mortgage rates so high people literally walk away from their homes, handing the keys back to the bank. How would that feel? Because those are the facts of the early 1980s and the impact the last Trudeau administration had, and they could be returning.

A new report from the Fraser Institute warns that Trudeau Jr. is taking us down the same high spending, out of control deficit ways his father did.

Remember that report from the finance department released just before Christmas talking about deficits until 2055? It’s real.

In their new report by Livio di Matteo, the Fraser Institute looks at Canada’s budget balance from confederation until now including the changes in taxation - from mostly tariffs to income taxes. The report sings the praises of the Liberal governments of Jean Chretien and Paul Martin - as well as Conservative Stephen Harper - for getting spending and deficits under control.

But they take a harsh look at what Trudeau senior did and what his son is setting us up for now.

In 1973 Pierre Trudeau’s Liberals tabled a budget deficit of $2.2B after promising small deficits for a few years to boost the economy. Sound familiar?

By 1992 the deficit hit a peak of $39B, the GST was introduced to bring in more revenue for the government so they could slay the deficits. But that small deficit Trudeau started us with in 1973 ballooned to $39B. His small deficits to boost the economy, his expansion of government spending got out of control, as di Matteo says in the report.

“Moreover, the deficits were particularly problematic because, aside from recession years, they were largely the result of the non-cyclical effects of the structural nature of federal deficits in the 1973-to-1996 era.”

Translation, we were paying for day to day government expenses through deficit spending. A bit like buying groceries on the credit card and never paying the bill. It is just going to grow.

And now warns the report, after years of cleaning up the last mess from Trudeau Senior we may be heading down this road again.

“Given the surge in deficit financing at the federal level currently underway in the wake of the 2016 Budget, one wonders if the lessons of the 1990s have already been forgotten.”

Di Matteo also points to the growing net debt to GDP ratio we can expect.

“The progress made in bringing the ratio of federal net debt to GDP below 40% will be largely squandered if we allow debt to once again grow uncontrollably.”

And then, what this all means for your wallet.

“Income tax brackets and rates had stayed stable for many years but 2015 saw the introduction of a new income-tax bracket, raising the top tax rate from 29% to 33% on incomes over $200,000. Combined with increases planned for CPP contribution rates and a cancellation of more generous limits for Tax Free Savings Accounts, it would appear that there is a return to higher rates of taxation underway.”

I’ve been warning for a long time, the new Trudeau Liberals are a lot like the old Trudeau Liberals - big spending, big taxes, big deficits - none of that good for the Canadian economy and this report backs up my warnings from before the last election.

Let’s hope enough people get it and vote this guy out come the next election before too much damage is done.

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commented 2017-02-08 19:29:44 -0500
No hope Brian. The stupid eastern voters will put the grubby little marxist back into power 2019 because they are told he has nice hair by the CBC and the rest of the Lugenpresse!
commented 2017-02-08 13:06:21 -0500
Message to Millennials . . . you are Screwed ! ! !
An 18 yo today will be paying till they are 60+ to pay of the Trudough insanity !
Trudough Sr did enormous damage to Canada . . . much of which we are still paying for today.
He was Canada’s Fidel !
commented 2017-02-08 11:20:00 -0500
Home of the REAL hockey stick graph, only Gov. spending, not temp. Truth matters.
commented 2017-02-08 09:09:44 -0500
I noted that there are posts on RT apparently from someone who identifies himself has Trustin Judeau. It also has an avatar which is a Trudeau selfie.
So, aside from being on holidays all the time, does JUST TIN waste his time posting on websites?
commented 2017-02-08 03:37:10 -0500
Thanks to you who voted..Lieberal..your, Egregouis subhuman life of swamp rats. Suits you. ..may you all die off swamp.Rot..
commented 2017-02-08 00:04:43 -0500
Of course they never learn from the past. They don’t teach history anymore, especially disastrous liberal history. As I said before, Canadians won’t wake up until it hits them hard enough in the pocketbook. It’s coming though.
commented 2017-02-07 22:56:14 -0500
Brian you are so right we need to vote out Little Potato on his a$$. Little Potato wants to faze out carbon emissions moving off fossil fuel, this is a loss of revenue to AB, SK, BC, MB, NS, NL and others. Little Potato wants to destroy Canada as we know it, just like Obama destroyed the USA. Read Smart Prosperity and Leap Manifesto and you will learn what climate change people are all about! It wasn’t a mistake what he said at the Town Hall meeting in Peterborough Ont. was the honest to God truth!!
commented 2017-02-07 21:18:21 -0500
I’ve been saying Junior’s self avowed “manifest destiny” is to complete the soviet Canadian state – to obliterate our 3 founding cultures and make us a vassal state of globalist neo-feudalism.

Canada’s best days are behind us.
commented 2017-02-07 20:26:26 -0500
It’s these kinds of actions that give Kevin O’Leary’s popularity a huge boost among working men and women, which I think is tragic. Kevin O’Leary is no Conservative! He may be fiscally conservative, and he may solve this Country’s financial problems and put everyone back to work, but I’m afraid those who hold to traditional Judeo-Christian values, their concerns would fall on deaf ears, just as they are now with Jr.
commented 2017-02-07 20:20:54 -0500
Sweet family they got there. The list of mental deficiency is too long to list besides all their other shortcomings
commented 2017-02-07 20:03:35 -0500
This country is finished, that’s why Alberta needs to get out of it and save its self.
commented 2017-02-07 18:56:43 -0500
As long as the Libranos line enough of the pockets of the powerful and influential and as long as the federal Conservatives remain the “Liberal Lite” party, the Libranos are likely to get more than the one term.

So very many don’t care if Canada goes to hell in a hand basket so long as they are made wealthy along the way.
commented 2017-02-07 18:41:14 -0500
Only one,legal way, to bring Trudeau down at the next election and that is to educate the Muslim population, They should be made aware of the kind of person he really is. This would be a hard task, as there will probably be 30,000,000 of them here, come voting time.

A little propaganda perhaps, like ‘Trudeau intends to house all Muslim in Camps up at the Alaskan Boarder’ when re elected.
commented 2017-02-07 17:51:50 -0500
“I feel sorry for the young generation … "

They brought this upon themselves by voting Liberal. They were warned yet they scoffed at the older generations that remember.

Unfortunately this will also effect us.
commented 2017-02-07 17:38:58 -0500
I’ve heard that a lot of people would like to see Just Tin leave the HOC in a vertical position but methinks there are a growing number of taxpayers who would as soon see him leaving in a horizontal position.

commented 2017-02-07 17:36:57 -0500
no Brian ,,you don’t speak for me , i am a baby boomer and i hated turdo # one, i despised him and i hated his whole corrupt party and his multiculturalism and everything he stood for , i hate turdo # two even more .
commented 2017-02-07 17:25:58 -0500
you guys forgot about the most important thing, he is the one that sold us out to the bankers. COMER anyone? its because of daddy that we have such an out of control debt. we have access to interest free money and yet we borrow money with interest from private bankers.
commented 2017-02-07 17:23:50 -0500
This happens when we get a bandit P.M.from QUE.
commented 2017-02-07 17:05:15 -0500
I feel sorry for the young generation if they have to live through the great interest hikes of the 80s I remember Canada savings bond with an interest rate of 18%. Living in Calgary during the high interest rate my friend who was building a small housing development who had 9 foundations in the ground because of the high interest rates just took the bull dozer and covered them up it was heart breaking.
If this liberal government continues spending us into a depression we are doomed.
The young will have to pay for the liberal mistakes just as I had to.
commented 2017-02-07 17:01:08 -0500
A two term Justin is just not possible.We can’t let it happen.
commented 2017-02-07 17:00:42 -0500
Too bad his dad wasn’t as pro abortion as he is. This could have been avoided
commented 2017-02-07 16:54:04 -0500
We need to petition our MP’s to commission bronze statues of Pierre and Justin. We need something to topple over and smash when we take back the government from these despicable Liberals.
commented 2017-02-07 16:45:48 -0500
It is all so painfully obvious.
commented 2017-02-07 16:45:25 -0500
It will get much worse before it gets any better.!
Unfortunately little putto has convinced and brainwashed enough people to believe that money falls from helicopters, national security and borders are now unimportant… The grief that will arise from this may never be quelled..
there is no advantage for us becoming a minority in our own country.!!
“The day of the locust” will soon be upon us.!!
commented 2017-02-07 16:45:19 -0500
The second coming of our CRIMEMINISTER would be an unholy rein

Bloody good one BRIAN , watching the fool on the hill – it’s like dayjavou !!!!

Yes – spelling on purpose
commented 2017-02-07 16:37:48 -0500
We can all hope that a majority of Canadians wake up before too much damage IS done… But a negative factor against that happening is that while during Pierre’s reign there were still news outlets questioning his spending, cozying up to world socialists, and demeaning the Canadian Armed Forces; there is little of that in today’s media… Once again stressing how much The Rebel is now needed..