There were some fairly big changes announced yesterday, but the way in which it was reported was interesting if you compared coverage. For example, The Canadian Press led with the headline of a $19-billion federal deficit last year, but didn’t explain until the fifth paragraph that the accounting rules had changed, and described it as “confusing matters,” and then engaged in both-sidesism to have the Conservatives rail about the size of the deficit rather than really explain what the changes meant. The Financial Post mentioned the changes in the second paragraph, but focused on the size of the deficit. It was the CBC’s coverage that spent the full story focused on the accounting rules changes and what they mean, and how that affects the reporting of the figures, which has a lot to do with unfunded pension liabilities that are now being put on the books in a transparent manner that the Auditor General has been calling for, for years now. Context like this is important, and it’s disappointing to see it obscured because writing about the deficit figures is sexier without explaining what they mean, so well done there. You’re really serving your readers.
As with any of these stories, however, the best commentary came from some of the best economists on Twitter, who put it all into context. The full Kevin Milligan thread explaining it all is here, but I’ll post some select highlights.
https://twitter.com/kevinmilligan/status/1053342629574828032
https://twitter.com/kevinmilligan/status/1053346059693346816
He also busted the myths about the deficit spending by pointing to the $70 billion hole in GDP that the Liberals were left with when they took office, in part because of the oil downturn and technical recession that the Conservative narrative keeps ignoring.
https://twitter.com/kevinmilligan/status/1053393949417586688
https://twitter.com/kevinmilligan/status/1053395164318752768
https://twitter.com/kevinmilligan/status/1053403984411582464
Also, Mike Moffatt points out the significance of those accounting rules around pension liabilities on the reporting of the books.
https://twitter.com/MikePMoffatt/status/1053342822017982465
https://twitter.com/kevinmilligan/status/1053354656384962560