Sunday, June 14, 2009

Liberals' Prayers that Economic Turmoil Will Continue to Go Unanswered - Worse, Stimulus Spending to "Unwind"

It was refreshing to hear last week, a chief Liberal strategist be so open with their lament that what may be good for the Canadian people - economic recovery - will be very bad for the Liberals.

Given that the stock market is a leading indicator and unemployment is always a trailing indicator (meaning it improves last) the Liberals are right to worry. Stocks are way up from their lows early last year and now we have word that the G8 is already preparing for a worldwide economic recovery.

It's also a bad news twofer for those on the left: it portends continued conservative rule, yes, but they're also discussing unwinding the stimulus packages. For the rest of us, economic downturns are a bad thing, albeit an inevitable occurrence where the market "correct" inherent inefficiencies or problems in the economy, giving us a natural economic cycle. To those on the left, a downturn is an opportunity to remind voters that the market is imperfect, and with the help of a pro-statist media, attempt to convince the populace that the economy can be made perfect and the pain of these downturns avoided if only we had bigger government and more spending. Make no mistake about it, to those on the left, there is to be nothing temporary about "stimulus spending".

Yet just when the spending party started, Flaherty and others in the G8 are already planning the big spending "exit strategy".

Good news for us. Bad news for the left. And bad news for the Liberals.


  1. I do not know about this. A great deal of the money for creating jobs is not moving..some from a few years ago is still not spent.
    If the economy gets better, it is because of the US., certainly not much the Canadian government has done.

  2. ''If the economy gets better, it is because of the US., certainly not much the Canadian government has done.''

    Then you must think the reverse is true too anon.
    That if the Canadian economy gets worse, it is nothing this Conservative government did, it was the US.

  3. You don't just cut a cheque and the work starts. Most times enviromental assessments hold things up. They take a long time to have done, and then when approved, inevitably some group will file an appeal or protest, starting the process all over again. Then there is the issue of when the winning tender can actually start the work.

    By the way, Liberals promised Toronto waterfront renovation money in '93, '97, 2000,2004. Harper delivered it in 2006.

  4. Anyone watching Don Newman on Friday saw Don and the Lib strategist David Hurley lamenting the recovery of the Canadian economy. They both referred to the recovery as a "problem" more than once. The best solution to this "problem", according to Hurley, is to throw it into disarray by calling an election ASAP. The good of the Country be damned.

  5. Iffy and his EI 360 demands has trapped himself in a 'coalition with Dippers and the Bloc'.
    What a fool.

    Iffy expected PMSH to back down,
    perhaps Iffy shud have read up on PMSH before jumping to that conclusion.

    Cons vs. Coalition : which option will Canadians trust to get out of the stimulus business before it hurts the economy?

  6. Yes, Herle and Kinsella are being careless in their choice of words, and in revealing too much about their "hopes" about the economy. There could be some video clips and/or quotes from these guys that find their way into future ads. Now all we need is for the media, in their questions to Iggy tomorrow, to press him on what his strategists are saying. It won't happen, as the PPG is interested in pursuing other narratives around Iggy.

    Calgary Junkie

  7. This says it all:

  8. Ignatieff is heading off to ENGLAND, maybe to become the next PM, and if that does not work; try out for the presidentcy. OBAMA's ratings is dropping and democractics are crossing the floor.

    It is not easy to run a party that is loaded with corruption, come on man, ignatieff should have known better.