Mark Carney’s first budget projects $78B deficit, program and civil service cuts
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To each their own.
Edit: removed personal details.
If you know anyone who works in government or a quasi governmental agency, they will tell you horror stories of colleagues who couldn’t be removed but couldn’t be arsed to do anything over the bare minimum (like being sober, showing up and handling at least one file a day.)
There has to be something in between the nihilistic conservative “burn it all down, no more bureaucracy!” and the opposite “every government employee is sacred!” I think a slow reduction through attrition and buyouts seems pretty reasonable and gives enough time to actually find efficiencies and innovations.
The fundamental flaw is equating corporate efficiency with public effectiveness. A company’s goal is shareholder returns, so it serves profitable customers and abandons the rest. We see this taken to its extreme with certain venture capital and private equity firms: they can buy a company, burden it with the debt used for its own acquisition, extract massive fees and dividends, and leave it a hollowed out shell. When it collapses, the architects of that failure are shielded from the consequences.
A government’s mission is the opposite: to serve everyone, especially the vulnerable. Applying this profit extraction model to public service doesn’t eliminate costs it just shifts them, following the destructive maxim of ‘privatize the profits, socialize the costs.’ For a corporation, this might be a successful short-term play. But for a government it’s long-term ruin
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The fundamental flaw is equating corporate efficiency with public effectiveness. A company’s goal is shareholder returns, so it serves profitable customers and abandons the rest. We see this taken to its extreme with certain venture capital and private equity firms: they can buy a company, burden it with the debt used for its own acquisition, extract massive fees and dividends, and leave it a hollowed out shell. When it collapses, the architects of that failure are shielded from the consequences.
A government’s mission is the opposite: to serve everyone, especially the vulnerable. Applying this profit extraction model to public service doesn’t eliminate costs it just shifts them, following the destructive maxim of ‘privatize the profits, socialize the costs.’ For a corporation, this might be a successful short-term play. But for a government it’s long-term ruin
Applying this profit extraction model to public service
Getting back to 2019 spending levels over a few years is hardly hollowing out the government.
And what that freed up money is doing is investing in stuff that makes those services work better.
For example in healthcare, which is hanging on by a thread, I think a few billion are going to building and renovating hospitals and investing in a new medical school. Those all make the services more efficient and sustainable in the long run.
Edit: My goodness, the cuts are something like 13 billion out of a 500 billion budget.
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Applying this profit extraction model to public service
Getting back to 2019 spending levels over a few years is hardly hollowing out the government.
And what that freed up money is doing is investing in stuff that makes those services work better.
For example in healthcare, which is hanging on by a thread, I think a few billion are going to building and renovating hospitals and investing in a new medical school. Those all make the services more efficient and sustainable in the long run.
Edit: My goodness, the cuts are something like 13 billion out of a 500 billion budget.
Most of the money got reallocated to the military though.
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Most of the money got reallocated to the military though.
They’re cutting 13 billion. 51 billion (over 10 years) is going to local infrastucture; housing, roads, health and sanitation facilities.
Yes, military got more (~82 billion) and I don’t love that. Though, one part I do love is that a chunk of that military is also dual use, so climate emergencies like wildfires, floods etc.
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They’re cutting 13 billion. 51 billion (over 10 years) is going to local infrastucture; housing, roads, health and sanitation facilities.
Yes, military got more (~82 billion) and I don’t love that. Though, one part I do love is that a chunk of that military is also dual use, so climate emergencies like wildfires, floods etc.
Then give it to firefighters, climate scientists and forestry. The military is reactive not preventative.
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Then give it to firefighters, climate scientists and forestry. The military is reactive not preventative.
Sure, you can dislike the military spending.
That doesn’t mean the budget isn’t investing more in the public than it is withdrawing.
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Sure, you can dislike the military spending.
That doesn’t mean the budget isn’t investing more in the public than it is withdrawing.
I dislike the increase in spending on military because the returns to the public are minimal, the US has proven that, decades running.
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I dislike the increase in spending on military because the returns to the public are minimal, the US has proven that, decades running.
Again, that’s a fine and valid critique of the budget.
The fundamental flaw is equating corporate efficiency with public effectiveness…
This position however, does not seem valid when the budget is putting in more than it removes from actual public services, 51 billion v 13.
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The theme seems to be “reduce operating spending, increase capital spending”. We’ll see how that will blow over with the opposition.
Cut the 30B that subsidizes oil and gas.
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Sorry, I seriously disagree with about all of this.
Inequality is what gives the ultra-wealthy their outsized influence in the political economy.
This is about Canadian politics. We have strict rules and limits on donations, advertising and support. Like anything, could probably be better but it’s a pretty fair balance.
the government can issue currency essentially at will.
Apologies but this is childishly ignorant. Look to most countries in South America about the consequences of doing so. Inflation is very real and reducing the value of the Canadian dollar hurts those who can afford it least.
Taxes aren’t there to fund services. They exist to reduce inequality.
Absolutely not. Being equally poor without teachers, doctors, roads, defence, I mean my God.
tax the billionaires
We do. You let me know how much you think we do currently, how much more you would like.
And if they leave: we’re better off that way too!
Who needs hospitals, schools, emergency responders etc anyway? At least we won’t have dumb ol’ rich people anymore!
You’re welcome to disagree - but everything I said is factual. If there’s something you don’t understand, I’m happy to explain - just ask.
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You’re welcome to disagree - but everything I said is factual. If there’s something you don’t understand, I’m happy to explain - just ask.
the government can issue currency essentially at will.
Okay, sure, this is technically true. In the same way that technically, you can drink bleach it’s just a very bad idea.
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the government can issue currency essentially at will.
Okay, sure, this is technically true. In the same way that technically, you can drink bleach it’s just a very bad idea.
It’s literally how we dealt with the first phase of the Covid pandemic. Was keeping millions of Canadians from being evicted a bad idea?
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It’s literally how we dealt with the first phase of the Covid pandemic. Was keeping millions of Canadians from being evicted a bad idea?
Covid, and emergencies like it, are entirely the point of fiscal responsibility!
In an emergency, you can max out your credit. If you do that on the regular, for non emergencies, not only will you end up paying an absurd amount of interest, but you won’t be able to borrow more when the next emergency happens!
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Covid, and emergencies like it, are entirely the point of fiscal responsibility!
In an emergency, you can max out your credit. If you do that on the regular, for non emergencies, not only will you end up paying an absurd amount of interest, but you won’t be able to borrow more when the next emergency happens!
Great ok so we at least agree that issuing currency is not the fiscal equivalent of drinking bleach, and that there are good and bad reasons to do it.
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Great ok so we at least agree that issuing currency is not the fiscal equivalent of drinking bleach, and that there are good and bad reasons to do it.
Dollars are not scarce items; the government can issue currency essentially at will.
Edit: You CAN drink a small amount of bleach. Just like you CAN print money during a generational event.
A small amount of bleach will burn a bit. A small amount of printing money caused inflation that we also haven’t seen in decades. It hurts families now but that’s the price we paid to help during covid.
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The theme seems to be “reduce operating spending, increase capital spending”. We’ll see how that will blow over with the opposition.
This budget is ass.
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I mean, that’s how a lot of Canadian politics works… “passed because no one really hated it”…
That’s how all politics works. You can’t make everyone happy, so you just try to make every less unhappy.
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Which services are you thinking of?
The major thing I’ve seen is reducing the number of public sector employees back to 2020 levels, which doesn’t seem wild. (I haven’t seen a good explanation of why we needed to increase the public sector by 20% since then, nor of what we got out of that. If you have anything, I’d love to read it!) Throw in some reductions of outside consultants etc…
There are undoubtedly some programs getting cut. But given we’re teetering on the edge of an adversary induced recession, that doesn’t seem unsreasonable.
Generally speaking, reducing public servants increases consultancy requirements, not reduces.
If you don’t have someone with the capabilites/skills/corporate knowledge/experince/capacity to do X thing on the payroll, then you need to hire a consultant to do it.
Now obviously I couldn’t tell you what ministry/department/etc needs, but let’s take the Alto contract as an isolated example.
We don’t have any rail expertise in government at all, so we need to consult it in, and we pay a premium for that. In the lens of a single rail project, that makes a a lot of sense, we aren’t paying payroll and maintaining expertise for a once in a generation project.
The alternative is having something like a national rail crown corp or department, like SNCF in France. Now all the experience is at the national level whenever you need it. SNCF has a lot more staff, planning, and engineering capacity than it requires; so that gets farmed out to regions and municipalities to help them with their rail/metro/tram projects. This is instead of each of them needing consultants, driving up the costs for municipal governments/capital projects.
In this manner increased federal spending becomes an accelerant for other levels of government and reduces regional and municipal spending, and thus the overall tax burden for everyone.
So if we had something like SNCF then the Alto project might cost a little more, but the Vancouver, Edmonton, Calgary, Ottawa, Toronto, and Montréal recent/ongoing lines would be cheaper; plus medium cities like Victoria, Winnipeg, Québec City, and Halifax would have rail projects in their reach; and smaller cities like Red Deer, Regina, Thunder Bay, Kingston, Trois Rivières, and Fredericton would have tram projects in their reach.
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Again, that’s a fine and valid critique of the budget.
The fundamental flaw is equating corporate efficiency with public effectiveness…
This position however, does not seem valid when the budget is putting in more than it removes from actual public services, 51 billion v 13.
That part wasn’t a critique of the budget, it was a critique of your pitch for efficiency. You pivoted the discussion, I followed.
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Dollars are not scarce items; the government can issue currency essentially at will.
Edit: You CAN drink a small amount of bleach. Just like you CAN print money during a generational event.
A small amount of bleach will burn a bit. A small amount of printing money caused inflation that we also haven’t seen in decades. It hurts families now but that’s the price we paid to help during covid.
Taxes, then, are disinflationary, right? Which is why we need to tax the rich especially