It all being official that the Liberals are willing to run a small deficit in order to finance infrastructure spending in the hopes of boosting a stalled economy have turned the election into one with some real differences between parties, which incidentally seems to have also energised Harper’s performance at his own stops. The issue for the Liberals would seem to be now not only having to sell the idea of deficits – which they are attempting to do with the line of being the only party that’s being honest about the current state of the nation’s finances – but ensuring that the infrastructure spending they’re doing is going to be actually useful in the longer term. Sure, there is a big infrastructure deficit in this country for which this new funding is but a drop in the bucket, but if he wants to ensure that this is the kind of kick that will grow the economy, it should be in things that will have bigger impact – port infrastructure to get goods to market, ensuring that there is the kind of broadband access in places that need it to grow their business and attract investment, and so on. It shouldn’t be about short-term stimulus, lest the Liberals repeat the mistakes of the Conservatives in 2009-10. Not unsurprisingly, Toronto mayor John Tory and the president of the Canadian Federation of Municipalities both liked the announcement as it means more money for cities. Former PCO Clerk Kevin Lynch talks about the need for fiscal policy rather than just relying on monetary policy to try to grow the economy – and includes infrastructure spending as an example. Kevin Milligan examines the case for infrastructure spending at this time, and finds there is a plausible case for it.
On the campaign:
- Stephen Harper announced his plan to extend help to those immigrants seeking to get their foreign credential recognized – never mind that this is a provincial issue.
- Thomas Mulcair launched the “official campaign” of his candidate Andrew Thomson, and stated that increasing health transfers would take time.
- Justin Trudeau gave his big infrastructure announcement and the fact that they would run a deficit for a couple of more years.
Good reads:
- The Conservatives have hired a group of former soldiers as extra protection to Harper for the campaign, and to deal with protests who make it in.
- In case there was any doubt, most Conservative candidates are obeying the edict to stay out of candidates’ debates and media interviews.
- Here’s a fact check about Mulcair’s claim that abolishing the Senate would save a billion (spoiler: Nope).
- People writing to the Prime Minister thought that the AG should get a crack at MPs’ books.
- Pundit’s Guide updates us on the state of party nominations.
- Aaron Wherry offers a look at the “snowflake” theory of political organizing.
Odds and ends:
In case it’s not obvious, having current PMO staff talking to former PMO staff in the courthouse is bad optics.
A government scientist and local folk musician is being investigated for a song that might have crossed the political line.
Harper’s hand-gesture on “tiny deficits” creates another meme storm.
Note: abolishing the Senate won't be a cost savings once you start factoring in court challenges and Royal Commissions for policy work.
— Dale Smith (@journo_dale) August 27, 2015
Funny thing: the Senate is actually more cost-efficient than the Commons is. pic.twitter.com/NrZvgSLDUF
— Dale Smith (@journo_dale) August 27, 2015
I don’t see how Harper could be energized by this. Even in good economic times he has run deficits. How can we expect him to run a balanced budget when times are tough and the country’s infrastructure is falling apart?
But he’s an economist, yo. Talking budgets and deficits is his thing.