Young Economics.

Ignatieff is no Economist

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The Globe recently ran an interview with Michael Ignatieff focusing on his thoughts about the federal deficit revision.  I couldn’t help thinking how uncomfortable he seemed while talking through Canadian economic issues and policy.

I wanted to embed the video into the post but couldn’t figure it out.  Check out the interview here:  Will Ignatieff Pull the Trigger

He’s really trying to hammer home how irresponsible our government has been by  i) not correctly forecasting the deficit  and ii) their inability to predict what the final number will actually be.  Doesn’t he realize that over the past few months every major economic forecaster (the IMF, the Fed, the Wall St. Journal etc.) has been downgrading their results?  No one could have gotten it right, and no one is.  Recently the US were forced to revise their deficit projection as well: Estimate of Budget Deficit Now Tops $1.8 Trillion.  Here’s an excerpt:

The budget office’s revised deficit projections bring the expected shortfall this fiscal year, which ends Sept. 30, to $1.84 trillion, from a February projection of $1.75 trillion. For the 2010 fiscal year, the new estimate is $1.26 trillion, up from $1.17 trillion.

So we have a situation where no one seems to be able to predict where the economy is heading,  and yet the opposition demeans our Finance department for not giving a hard-line figure for what the deficit will be at year-end.  The criticism doesn’t make any sense.

I’m of the personal opinion that the Liberals have been looking at the polls and decided an election would be in their best interests.  They are pushing the mantle of economic incompetence on our government not so much for justifiable reasons, but because they want a turn at the top.   Mr Ignatieff keeps saying how he wants to make parliament work, but   demanding the current Finance minister to step down in face of an exogenous global recession doesn’t exactly back up his claim.

Isn’t Harper supposed to be the political hard-baller?  This is political positioning at its best.  It’s not easy to be optimistic about the state of Canadian politics.

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Written by jk

May 30, 2009 at 9:59 am

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