As I noted a year and a half ago already, Justin Trudeau doesn’t understand much about economics. And this is still the case today, as he tries to justify getting us back into deficits and piling up more debt.
February 25, 2014
Maxime Bernier is the Minister of State for Small Business, Tourism and Agriculture
Now that its Montreal convention is over, we know a little bit more about the Liberal party’s economic platform. One of its central planks is that budget deficits are a good way to grow the economy, and that we should not be afraid to go further into debt.
In a recent video posted on the Internet, Liberal leader Justin Trudeau explains that Canadian households are heavily indebted, just like provincial governments, while the federal government has considerably lowered its debt level compared with other developed countries since the 1990s. His conclusion: Ottawa is the only entity with the ability to spend money and rack up more debt. It, therefore, has to “step up” and do the spending that others are not able to do.
At last weekend’s convention, Liberal delegates heard Larry Summers, an American economist, explain why we need “unconventional support policies” — economic jargon for “spending without restraint.” According to him, accumulating more debt is OK when it serves to stimulate the economy.
Are we in a recession? Does the current situation justify sending our public finances back into the red?