“We understand the value of wise and prudent fiscal management,” she told the news media and bankers last week. In telling them what they wanted to hear, our new finance minister, reminded me of the old English custom of newlyweds jumping over a candlestick to see if their first year will be successful. Chrystia Freeland even made a point of telling them she had talked to former prime minister Paul Martin who was Jean Chrétien’s finance minister in the troubled times of the 90s.
Coincidently I talked to Paul Martin when he was appointed finance minister and pleaded with him to have more faith in the Canadian people. I lost the argument and have never talked to him since. In my opinion, Paul did more to disrupt Medicare in Canada than Stephen Harper could ever have done.
But looking at Chrystia Freeland’s situation, I must admit that I have no idea what strengths she brings to her new role in finance. I have often wondered what someone would do in that job, who only had experience with a household budget? I have written on many subjects, as has Freeland. It hardly means that I am expert in any of them.
I was reading in the Toronto Star the other day where one of our chartered banks advised Freeland to keep her government’s borrowing to less than 65 per cent of our gross domestic product (GDP). It makes me wonder what that bank says to customers who need a mortgage for a home in Toronto or Vancouver. Would they tell the customer that they have to keep the mortgage to 65 per cent of annual income?
I have absolutely no idea what the outer limit of the Canadian government borrowing might be. I am quite confident that it would be considerably more than 65 per cent of our GDP.
All I know is that I am tired of bankers and financial experts in this country trying to attract foreign investment. I would like to see more Canadians investing in our country’s future—and keeping that investment here.
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Copyright 2020 © Peter Lowry
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