[net.politics] Deficits and Canada

robinson@ubc-ean.CDN (Jim Robinson) (07/24/84)

 >  
 >  ****************
 >  That the federal deficits so much deplored by Gov. Cuomo were built
 >  while Tip O'Neil and his redistributionist House Democrats remained
 >  in control of the nation's purse strings. That deficits didn't
 >  become an issue with Democrats until Ronald Reagan and a rebellious
 >  public began to deny the government further tax increases.
 >  ****************
 >  
 >  Interesting views of the deficits, that.  According to a chart published
 >  a few months ago in TIME, every one of Reagan's budgets has had a deficit
 >  more than three times the previous record deficit, whereas every one of
 >  Carter's deficits was less than the preceding year's deficit (including
 >  the deficit bequeathed by his predecessor).
 >  
 >  It's really amazing how Reagan apologists keep trying to accuse the
 >  Democrats of causing the deficits, when the deficits were being reduced
 >  during the period the Dems had the White House and both Houses of Congress
 >  but leaped upward as soon as Reagan had control.
 >  
 >  Maybe you think Canadians have no business commenting on such matters
 >  of "internal" US politics -- but although we can't vote, your misgovernment
 >  hurts us probably more than it hurts you.
 >  
 >  "No taxation without representation!"   But how do we secede?
 >  -- 
 >  
 >  Martin Taylor
 >  {allegra,linus,ihnp4,uw-beaver,floyd,ubc-vision}!utzoo!dciem!mmt
 
 
For a Canadian to accuse the Reagan administration of "misgovernment" (with 
regards to the deficit) seems to me to be somewhat hypocritical. The Canadian 
deficit is about $30 billion  of a total budget of about $60 billion ( all
figures are + or - a few $billion and are in Canadian "dollars"). Also when you
take into account the fact that the population of Canada is only 25 million, 
I think it becomes obvious who has been doing the misgoverning.
 
Rather than blame RR are the Republicans for the poor state of affairs of the
Canadian economy ( and I do concede the fact that the US is mainly responsible
for the high interest rates experienced here), it is necessary to look no
further than to Ottawa to find the real culprits. Former Prime Minister Pierre
Trudeau not only had no understanding of economics, but also lacked the sense
to recognise this shortcoming of his, and take some constructive steps like 
delegating all economic responsibilities to the Finance Minister. (I seem to
remember reading somewhere that the average Finance Minister's tenure was 30
months during the Trudeau years - considering that Trudeau governed for almost
16 consecutive years I think this says something) 
 
P.S. Remember back in '72 when $1 CDN was worth $1.04 US, instead $0.75 today?

                                             
                                                   J.B. Robinson 

julian@deepthot.UUCP (Julian Davies) (07/24/84)

My opinion, for what it is worth, is that blaming Trudeau for whatever
ills are perceived in the Canadian economy is too simple.  The same
applies probably for Reagan and the USA.  (I say this even though I
very much object to some of reagan's policies.)   Governments
invariably discover that their freedom of action is much more severely
resticted than they would like, and they are bound by what the general
population will tolerate.  The Canadian population has become used to
a level of affluence which cannot be sustained indefinitely.  There
are strong forces (business among them) which act to blind people to
the elementary facts of global economics for a steady-state world.
   If the government is going to substatially reduce the deficits that
have been run up, and avoid future repetitions, Canadians (that means
US too) will have to accept a reduced standard of living.
   Since some people in canada are already on rather low incomes, the
impacts should fall primarily on those who are above-average in
wealth, -- I note that computer people generally aren't doing too
badly at present.

mmt@dciem.UUCP (Martin Taylor) (07/26/84)

******************
 >  Maybe you think Canadians have no business commenting on such matters
 >  of "internal" US politics -- but although we can't vote, your misgovernment

 >  hurts us probably more than it hurts you.
 >  
For a Canadian to accuse the Reagan administration of "misgovernment" (with 
regards to the deficit) seems to me to be somewhat hypocritical. The Canadian 
deficit is about $30 billion  of a total budget of about $60 billion ( all
figures are + or - a few $billion and are in Canadian "dollars"). Also when you

take into account the fact that the population of Canada is only 25 million, 
I think it becomes obvious who has been doing the misgoverning.
******************

After I posted the original of this, I wished that I had added that
US misgoverment hurts us more than does misgovernment from Ottawa,
because that is the real reason why Canadians take more interest
in US politics than in Canadian Federal politics.  In my view, the
main misgovernment in Ottawa has had to do with over-control by
the accountants and comptrollers as opposed to the workers in the
civil service, and with policies directed at aping Reaganomics without
seeming to do so.  The first factor depletes the civil service of
imaginative and resourceful people who COULD give good advice; the
second is probably the result.

You should also note that I did not claim that Reagan's deficits were
a sign of misgovernment.  My point was that Canadians are highly
susceptible to what goes on in the USA, but have no voice.  The first
part of the note was simply a statement of fact, fact that Reagan
apologists conveniently forget: the deficits are HIS and not due to
the Democrats.

It could be argued that deficits as such are irrelevant to the quality
of the government.  Deficits in a good cause may be highly desirable;
unpredicted and unwanted deficits probably are not (and remember that
Reagan neither expected nor wanted deficits to last so long into his term.
He even supported the idea of a Constitutional amendment to prohibit them.
I guess that might suggest a leetle misgoverment, mightn't it?)

From the "morning smile" in today's Globe and Mail (from memory):
It's a pity that all the people who really know how the country
should be governed are driving taxis, cutting hair, or waiting
on tables. (And writing to Usenet).
-- 

Martin Taylor
{allegra,linus,ihnp4,uw-beaver,floyd,ubc-vision}!utzoo!dciem!mmt

wetcw@pyuxa.UUCP (T C Wheeler) (07/26/84)

Just one small correction to Martin's article.  The House of
Representatives, democratically controled for over twenty years,
is the place where the final budget is decided.  IF the
democrats were so all fired, dead-set against deficit spending,
they had every chance in the world to change the fact.  Instead,
they managed to load the budget with all kinds of schemes and
spending items so that the true budget proposed by Reagan was
inflated just to please themselves.  Then they had the gall to
point to the White House as the reason for the deficits.  The
Democrat controlled House divinely believes in the old
Machiavllian tenet that "If you tell a lie often enough and
loud enough, people will believe it."  That is just what has
been happening concerning the budget and deficits in the
US.  I am sorry that I cannot speak about Canada's problems,
but I do realize that many of the things that happen in the
US concerning economic questions have a bearing on Canadian
economics.  I wish it weren't so.
T. C. Wheeler

mmt@dciem.UUCP (Martin Taylor) (07/31/84)

T.C.Wheeler says:
************
Just one small correction to Martin's article.  The House of
Representatives, democratically controled for over twenty years,
is the place where the final budget is decided.  IF the
democrats were so all fired, dead-set against deficit spending,
they had every chance in the world to change the fact.  Instead,
they managed to load the budget with all kinds of schemes and
spending items so that the true budget proposed by Reagan was
inflated just to please themselves.  Then they had the gall to
point to the White House as the reason for the deficits.
************
So the reason that the Carter deficits declined from those of the
previous Republican Administration was a Democratic plot to
make the next Republican Administration look bad?  Interesting theory,
that.  But they could have done it without tripling the previous
record deficit, if all they wanted was to make Reagan look bad!!

I suspect that the tenant of the White House might have had
just a leetle bit to do with it ... No? Oh well, logic never
gets one very far on this net.
-- 

Martin Taylor
{allegra,linus,ihnp4,uw-beaver,floyd,ubc-vision}!utzoo!dciem!mmt