Trudeau suggests the deficit

by KW on Octobre 22, 2015 - 10:11pm

The Liberal Party recently won with a majority. Justin Trudeau, the new Prime Minister, has been elected. We might hear about the deficit that the Liberal Party has promised shortly. Indeed, the Liberal Party wants to run deficits for three years. A deficit is a situation in which the amount by which a sum of money falls short of the required or expected money1. So in the case of the Canada, instead of having a balanced budget (that means no debt), we might have a deficit that goes up to $10 billion per year for the three first year. That’s what Justin Trudeau called ‘’a modest short-term deficit’’ according to the article on The Globe and Mail’s website2. During the fourth year, the Liberal Party is planning to come back on a balanced budget. Justin Trudeau seems to be convinced that it is a great plan, but on the other side Steven Harper doesn’t agree.

An article about the Liberal Party’s projects on CBC News’ website3 explains quite well the situation. Justin Trudeau asserted that a deficit would allow the Canada to augment his growth and to benefit from it. Mister Trudeau did a good speech, but is that credible. With the previous experiences, it’s not really the case. For example an article, on The Guardian’s website, showed a situation in 2010 where The United Kingdom did a similar deficit4, but two years after (2012) they were forced to review their method because it did not work out. Steven Harper, leader of the Conservative Party, also said that with his experience he could tell that it was a bad idea: "When you have modest growth, you don't return the country into deficit." said Harper.

In my opinion, I don’t think that the deficit will be successful. It is hard for me to tell because there’s not much information about it but Justin Trudeau promised and expect a lot of things. The Liberal Party is also the only big party that suggested the deficit. We still need more information about the outcome of the situation but so far I am not convinced that the Liberal Party’s plan will work out.

 

 KW

 

Sources:

1.        http://www.thefreedictionary.com/deficit

2.        http://www.theglobeandmail.com/news/politics/liberals-propose-modest-deficits-in-order-to-kickstart-the-economy/article26125406/

3.        http://www.cbc.ca/news/politics/canada-election-2015-liberals-infrastructure-deficits-1.3205535

4.        http://www.theguardian.com/business/ng-interactive/2015/apr/29/the-austerity-delusion

About the author

KW