Although truth is usually a casualty in most warfare, comprehensive economic policy may be a casualty in the current federal election war.
A growing list of economic commentators and critics are expressing concern about what is ahead for fiscal policy and a range of economic issues from productivity to skilled labour markets.
Latest in this chorus is the C.D. Howe Institute, which says the first task of the next Parliament should be to rein in soaring federal spending while the country is still balancing its budgets.
”Canadians have not seen real per-person increases like these since the early 1970s – the heyday of interventionism that sowed the seeds of unsustainable deficits and high taxes in the following two decades,” the institute said in a paper written by William Robson.
“An urgent task for the members elected to Canada’s next Parliament will be remembering that governing means choosing, not spending on anything and everything.’’
Earlier in the past week, Nancy Hughes Anthony, president of the Canadian Chamber of Commerce, complained that while a debate on tax cuts may have been started, our future economy doesn’t appear on the national radar screen in this campaign.
In a scorecard, the chamber gave the Liberals and Conservatives only bare passes on economic policy and flunked the NDP and Bloc Quebecois outright.
“What has been missing in this campaign is a frank discussion about who will pay for these expensive pledges and generate the wealth in the first place to underwrite them,’’ Hughes Anthony said.
The chamber noted that only the Liberals have said anything about a national securities regulator – they favour one – while the Conservatives and other parties have been silent.
The Toronto Star has called on Conservative Leader Stephen Harper to spell out what his election promises will cost.
He gave a partial answer Friday by announcing the party’s full platform. His government plans to spend $30 billion on new programs over five years and cut $45 billion in taxes in the same period.
He promised to retain existing social programs while adding $22.7 billion to transfer payments to the provinces over the next five years.
Of interest to financial markets, he said his government would cut capital gains tax for individuals and companies that reinvest the proceeds within six months.
As the Liberal campaign continues to struggle, financial markets have turned their thoughts to what the country will be like under Conservative – possibly majority – government.
BMO Nesbitt Burns expects a Conservative majority would be good for Canada’s currency, while a minority government would mean uncertainty and therefore weakness in the dollar.
Campaign watch: Economic policy getting sort shrift in campaign
- By: Gord McIntosh
- January 13, 2006 January 13, 2006
- 11:15