What to expect from the Harper ConservativesSteven Harper has an MA in economics from the University of Calgary. He was a member of Preston Manning's original fiscally-conservative western-based Reform party. And then was president of the Citizens Coalition, a right-wing, anti-government regulation lobby group. His economic philosophy is neo-liberal.
Harper understands better than most politicians the negative impacts of free-riding off a common property resource. He also understands the market consequences of changing property rules mid-stream and confiscating wealth.
On the other hand, many of the economic policies of the Harper Conservatives have been rather populist and appeared politically ambitious rather than socially-minded or farsighted. So before we try to divine how the Harper Conservative government will react to this thorny issue, let's review how they have performed on other issues.;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,Steven Harper has an MA in economics from the University of Calgary. He was a member of Preston Manning's original fiscally-conservative western-based Reform party. And then was president of the Citizens Coalition, a right-wing, anti-government regulation lobby group. His economic philosophy is neo-liberal.
Harper understands better than most politicians the negative impacts of free-riding off a common property resource. He also understands the market consequences of changing property rules mid-stream and confiscating wealth.
On the other hand, many of the economic policies of the Harper Conservatives have been rather populist and appeared politically ambitious rather than socially-minded or farsighted. So before we try to divine how the Harper Conservative government will react to this thorny issue, let's review how they have performed on other issues.
Royalty Trust taxation -- Pre-election, Harper promised to not touch the income trust tax shelter. Then corporate Canada started to convert en masse to trusts and Harper did an about face and shut down the protected tax structure for all activities except real estate firms.
In the process, Stephen Harper hurt very badly a large number of retirees who had loaded up on oil & gas royalty trusts in particular. I think of it as repeatedly kicking old people while they lie helpless on the floor...... In fact, some former Conservative voters have yet to forgive Harper for that wealth-punishing about-face.
Fiscal policy - As it turns out, Stephen Harper is not a fiscal conservative. This sets him a part from most graduate-school trained, professional economists who tend to be fiscally conservative. That is not the only way that Harper, the political leaders, differs from his economist colleagues.
Near the height of the last commodity-driven boom, the Harper government cut the federal value-added sales tax--the GST--two percentage points. Instead of cutting payroll taxes or other income taxes, Stephen Harper cut the consumption tax at the very moment that he should have either been preparing for the next economic downturn or actively seeking to slow economic growth through contractionary fiscal policy.
At roughly same time, his government increased federal expenditures faster than the previous Liberal governments.
In the wake of 2008 financial crisis, a number of economists started suggesting that Canada was risking, once again, a structural deficit. Structural deficits do not cure themselves without tax increases or radical program spending and transfer cuts.
Capital markets - The suggestion and now campaign to create a single federal securities market regulator is an excellent one. It would decrease the cost of capital for Canadians and would make Canada a more attractive source of financial services for international clients.
Freer trade - The Harper government has pursued and signed new freer trade agreements such as the one done with Colombia just recently. Harper has quietly and diplomatically tried to negotiate reductions in barriers to trade between Canada and the USA in the wake of the massive hyper vigilant hysteria that followed the Sept. 11 attacks. The federal government has for the most part avoid