The Budget, and the Coalition's Last Chance

Tomorrow, Finance Minister and Flim-Flam-Artist-in-Chief Jim Flaherty will deliver the federal budget for the 2009-2010 fiscal year. Much of the budget has already been leaked, in defiance of long-standing trends of budget confidentiality. The Conservatives appear to be set to spend like drunken sailors on a variety of areas. The spending seems, for the most part, to be focussed on good things (though as the NDP has been pointing out all day, the Conservatives can't really be trusted to deliver on this stuff, since they keep re-announcing the same money over and over). Concerningly, however, is that it has been indicated that the budget will contain broad-based tax cuts.

As I wrote a while ago, tax cuts are not stimulus, no matter how much the government would like us to believe the Chicago School, neo-liberal orthodoxy that if you free the market, greater prosperity will follow. That has been proven time and again, from the Southern Cone of Latin America to the post-Communist economies of the former Soviet Block, to the former Asian Tigers. Neo-liberal orthodoxy produces fantastic riches for an elite few, but produces planned misery for the vast bulk of the population. Neo-liberalism produces a massive wealth transfer from the poor to the rich, and produces the most astonishingly unequal societies on the face of the earth.

If this budget includes broad-based tax cuts, those will not be stimulus, those will drag the federal curent accounts budget into a structural deficit. Reducing revenue is the most astonishingly inappropriate thing for the government to do when major fiscal stimulus is needed.

The Liberals have this one opportunity to prove that they have grown a spine. If they vote for this budget, and for the con artists who have put it together, they will have proven themselves cowards, shrinking in the face of Conservative lies and bullying. However if they vote against, they will have proven a willingness to find an alternative within our constitutional structures, and without forcing the expense of another election on the people of Canada. Of course, all of that depends on the Governor General not disgracing herself again when Harper asks her for dissolution and a new election.

If the Liberals knuckle under, that will be it for the coalition. There is no point in any kind of cooperation with a Liberal Party that is staggering drunkenly to the right under Michael Ignatieff who is quickly proving once again that the Liberals will say anything and stand for nothing.

Tomorrow will be interesting.