March is here at last, bringing an end to the unprecedented suspension of Canada’s Parliament.
Parliament resumed with the traditional throne speech, followed in short order by the delivery of the budget on March 4 by Jim Flaherty, finance minister. As anticipated, there were few surprises with this budget. The focus was the economy, of course. While the Harper government has chosen to delay going to work on the deficit, this budget has served notice that lean days are on the way.
The general feeling seems to be that the patient – the economy – may be off the critical list but is still in a pretty fragile state and in need of more TLC. Much of this country’s recovery has been fueled by government spending, and now is not the time to turf the patient from its bed – not quite yet, in any case, although that day is coming soon.
Canada still has an uncomfortably high unemployment rate. The general opinion is that the recovery will be deemed solid when the business and industrial sectors gain the confidence to start hiring.
The more taxpayers out there earning and paying, the better. At the rate the deficit is growing, it will take a concerted effort by the entire nation, over a number of years, to get that under control. And no one is even mentioning the national debt at the moment. While the Chrétien and Martin Liberals got the deficit under control and started bringing in surpluses, all it meant was our national debt was no longer growing. What little was done to chip away at the debt has largely been undone by the Harper government’s response to the recession.
Only history will say whether this government’s economic strategy was wise or foolhardy.
Over the next several weeks, the Harper government will be criticized for spending too much, and for not spending enough, for choosing to tackle the recession through spending programs, and for not spending on the “right” programs. And when the various programs come to an end and the serious spending cuts begin, as they surely will, the Harper Conservatives will be soundly criticized for letting the deficit build, and for making cuts to get it under control, for spending like there was no tomorrow, and for not continuing to do so.
Most of us, including Harper and his government, understand that today’s deficits are tomorrow’s taxes. But we, and they, also understand that it is far easier for a vibrant, successful business sector to expand and create economic opportunities, than it is to rebuild from the ground up.
One thing is clear right now – Canada seems poised to make the most of the many opportunities that will arise as the world’s economy gets back on track. This country is in better shape than many others in the developed world, and we have the innovative spirit to move forward. However, if there was a lesson to be learned from the economic crisis that almost brought the world’s economy to its knees, it is that innovation works best when it is combined with a certain amount of caution.
The next few years will include many challenges for Canadians. In the best Olympic spirit, all we can say is, bring them on. We can handle them. But being Canadians, we will handle them carefully, preferring long-term, steady growth to something quick and dramatic.