The Fiscal Update Is Getting Bad Reviews: Here’s What’s In It

A massive media bailout, and an increased budget deficit, among other things.

The Trudeau government has unveiled their fiscal update. Here’s what’s in it:

  • A disturbing, $600 million media bailout.
  • Tax breaks for corporations, totaling $14 billion over 6 years, including measures to help companies write-off capital investments.
  • $800 million more for a ‘strategic innovation fund.’
  • An ‘export diversification strategy.’
  • A social finance fund of $755 million.
  • $25 million more for avalanche safety.
  • $13 million more for the Nutrition North program.
  • $49 million to rebuild fish stocks.

Here’s what’s not in it:

  • Any plan to balance the budget. In fact, the deficit will rise by nearly $2 billion.
  • Any Direct help for the devastated energy industry.
  • Any tax relief for the beleaguered middle class.

And of course, the update didn’t cancel the carbon tax.

As a result, the update is getting mostly poor reviews.

On BNN Bloomberg’s website – which is read by many of the top businesspeople and investors in Canada – an online poll shows just 16% saying they feel better after Morneau’s update, while 55% say they feel worse. 29% say they feel the same.

Not so good.

Highly-respected economist Jack Mintz called it “a really inadequate response.” The consensus appears to be that a few things in it are good, while it falls far short of addressing the serious challenges facing our nation. Particularly, the energy industry which is facing a crisis, and is in need of swift action, received no support.

If you’re heading in the wrong direction, and you turn slightly, you’re still going the wrong way.

And while the elites won’t want to discuss the media bailout, that is something that will have disturbing consequences for Canadian democracy for a very long time.

With Canada facing serious challenges, what the government needed to do was repeal the carbon tax, cut taxes across the board – including for consumers, reduce regulations immediately, and remove restrictions on the energy industry.

They did none of that.

Spencer Fernando

Photo – Twitter