RE: RE: Harper's structural deficit"We all should be happy that we have had Harper juring this economicdownturn the Liberals would have spent us ( as they are campaign to doso) into a far deeper deficit" -djb633
Well, good management of an economic downturn depends crucially on what government does prior to the downturn. In this the Harper Conservative the value-added federal sales tax--the GST--twice during a rip-roaring, out-of-control commodity boom.
So instead of using policy to slow the boom, the rate of shifting communities, the rising crime rates, etc., Harper "trust me I'm an economist" does exactly the opposite of what the profession would do and cuts consumption taxes.
The result? What looks an awful like a structural deficit. Harper's structural deficit. Without future tax increases or significant transfer cuts, the deficit and debt levels will keep growing unchecked.