We’re being told by the Harpies that opposition parties – if we were stoopid enough to elect the Liberals or the NDP – would spend like crazy and increase our level of debt. Here’s just one of the empty threats from Steve.
Duh! If you’ve ever read an unbiased economics textbook, that’s what you do when you’re about to head into a recession.
What you don’t do is cut taxes and expect people to just spend their way out of economic misery because they’re too worried that they’re not going to have a job in two weeks. Let’s do the math: I can either spend to support the economy with ZERO income less a few percentage points or I can work because our government has invested in rebuilding programs to cushion the blow. The net effect with the treasury is the same, but the outcome is exceptionally different.
And you also don’t slash business taxes, at least not for big business. These days, the only corporations that are actually making profits in Canada are those that are not based here. As a result, they pay less here, but then turn all of their after-tax balances over to a foreign treasury.
Bravo!! Your tax-cutting package has just ensured that money evaporates from our economy and people resort to eating their pets because they don’t have jobs.
You think I’m ranting, don’t you? Well, check out what mainstream media has to say about tax stimulation packages:
MarketWatch Commentary on 2007/2008 Relief Package
And, if you think that’s bad, the dreaded comparison to 1929 is on its way:
Tax Relief Package Details from 1929
When you read this article, be sure to skim down to the bottom to review the list of “impartial” advisors to the relief package, including the likes of Ford, Standard Oil, GE, du Pont, Macy’s, etc.
It didn’t work then and it won’t work now. Please don’t let history repeat itself.