LILLEY: Why Trudeau's reckless deficit spending matters
Brian LilleyMore from Brian Lilley
Published: October 5, 2019
Updated: October 5, 2019 7:31 PM EDT
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Liberal Leader Justin Trudeau greets supporters after speaking at an election campaign stop in Brampton on Sept. 22, 2019. (REUTERS)
Deficits don’t matter, that’s what I’ve been told in the week since Liberal Leader Justin Trudeau unveiled a platform last Sunday with deficits as far as the eye could see.
Maybe they don’t matter to voters but they should because right now we spend more money paying the interest on our accumulated deficits than we spend on the Canada Child Benefit, equalization payments and even the military.
That should scare everyone even if the Liberal government, and much of the media, see no problem with never-ending and ever-growing deficits.
In the 2015 election Justin Trudeau was able to overcome two decades of voter aversion to deficits by promising he would run three “small” deficits of just $10 billion a year to stimulate the economy.
The deficits of course ended up much higher, almost three times higher, and lasting much longer than three years. The days of Liberals like Chretien and Martin fighting to slay deficit spending were clearly over.
Yet with Trudeau’s latest plan he’s ramping up spending once again — promising deficits of $27.4 billion in 2020-21, followed by overspending of $23.7 billion, $21.8 billion, and $21 billion in the following three years. Those are much higher deficits than his own government proposed when their spendthrift budget was tabled in March.
The bizarre thing is, the Liberals keep telling us the economy is doing well, that statistically we’ve never had it so good.