OTTAWA – Following news that the Canadian economy shrank during the summer construction season and that the deficit – already at a record $54 billion – will be even higher than expected, Liberal MPs said the Harper Conservatives are not getting the job done on the economy while padding their legacy as the biggest borrow-and-spend government in Canadian history.
“Canada’s economy has taken a step backwards as the borrow-and-spend Conservatives have failed to stimulate substantial economic growth,” said Liberal Finance Critic Scott Brison. “The Conservatives are not addressing the real economic challenges facing Canadian families, like record household debt, the rising cost of education and home care, pension security, and the loss of 150,000 full-time jobs.”
“Today, because of the Conservatives’ waste and economic mismanagement, Finance Minister Jim Flaherty announced the first EI tax hike in 17 years – and in the same breath he’s borrowing more from Canadians by announcing an even bigger deficit.”
Statistics Canada reported today that Canada’s GDP fell by 0.1% in July, representing an overall contraction of the Canadian economy, while Canada’s unemployment rate is 1.9% higher today than it was during the last election.
After a decade of surplus budgets under the Liberals, the Conservatives put Canada into deficit even before the recession by increasing government spending by 18 percent in their first three budgets – and now their record $54-billion deficit is projected to rise even further.
“The Conservatives’ wasteful and irresponsible spending is to blame for adding to their record $54-billion deficit,” said Liberal Associate Finance Critic Alexandra Mendès.
“Stephen Harper’s solution is to borrow another $20 billion for an unaffordable corporate tax break while ignoring the needs of hard-pressed Canadian families. How are Canadians doing better today? Have these borrowed billions really helped Canadian families?”
During the last election, Stephen Harper boasted that his government would not run a deficit. Since then, their track record of waste has steadily piled up:
- A record $130 million on shameless self-promotional advertising;
- $1.3 billion for a 72-hour G8/G20 photo-op, spending on everything from the fake lake to glow sticks;
- $10-13 billion on American-style mega-prisons to lock up “unreported criminals” as the crime rate declines;
- $16 billion on a bad deal for stealth fighters, awarded without competition or guaranteed jobs for Canadian industry; and
- $20 billion in corporate tax breaks that we can’t afford.
“Is there any question that this wasteful spending shows the Conservatives are out of touch with the real economic concerns of middle class Canadian families, who are struggling to make ends meet?” concluded Mr. Brison.
