[Canada] Canadian Politics Redux

[crazy canuck]

That would be a good lesson for a country that is at some risk of doing any of that.  In Canada the relevant lesson relates to poorly timed austerity.

What is the non-poor time for austerity?

When the economy is strong.   Have the neocons been so successful that this is not obvious? 

[crazy canuck]

That would be a good lesson for a country that is at some risk of doing any of that.  In Canada the relevant lesson relates to poorly timed austerity.

The downside of poorly timed austerity is slower economic growth.

The downside of spending too much is the IMF, the US, or China dictating terms that you need to enact laws within 48 hours to cut national pensions by half, raise GST, extend shop opening hours, transfer public assets to a fund headquartered in Beijing, and agree that your future budgets be vetted by a board comprising representatives from Goldman Sachs and Morgan Stanley, or face economic ruin

You understand that when an economy does poorly tax revenues drop and so more debt financing is required right

[Valmy]

That would be a good lesson for a country that is at some risk of doing any of that.  In Canada the relevant lesson relates to poorly timed austerity.

What is the non-poor time for austerity?

When the economy is strong.   Have the neocons been so successful that this is not obvious? 

And cool off a successful economy? Nobody ever does it. Hence why we end up having to do it at really bad times because we have no choice.

What do neocons have to do with this? They are about politics not economics.

[Monoriu]

You understand that when an economy does poorly tax revenues drop and so more debt financing is required right

Not necessarily.  HK's economy performed poorly in 2003.  There were massive budget deficits.  But no debt financing was required.  The government just spent a portion of the cash reserves, and all was well.  The reserve was rebuilt afterwards. 

[crazy canuck]

That would be a good lesson for a country that is at some risk of doing any of that.  In Canada the relevant lesson relates to poorly timed austerity.

What is the non-poor time for austerity?

When the economy is strong.   Have the neocons been so successful that this is not obvious? 

And cool off a successful economy? Nobody ever does it. Hence why we end up having to do it at really bad times because we have no choice.

What do neocons have to do with this? They are about politics not economics.

We already did it Canada.  No reason to think we can't do it again.  As to your other point, are you trying to suggest there is no connection between political and economic discourse?

[Valmy]

We already did it Canada.  No reason to think we can't do it again.

Well bully for you. But that is not typical and why situations like Greece develop. For most countries there is no good time for austerity and it will always be politically dangerous.

As to your other point, are you trying to suggest there is no connection between political and economic discourse?

No, I don't think I mentioned everybody everywhere for all time. Just that there is none for the Neocons. They have a very specific agenda.

[crazy canuck]

Well bully for you. But that is not typical and why situations like Greece develop. For most countries there is no good time for austerity and it will always be politically dangerous.

Thank you.  In relation to your second point, I don't find your argument that governments should not engage in good public policy because they tend to engage in bad public policy very persuasive.

[Grey Fox]

That would be a good lesson for a country that is at some risk of doing any of that.  In Canada the relevant lesson relates to poorly timed austerity.

What is the non-poor time for austerity?

When the economy is strong.   Have the neocons been so successful that this is not obvious? 

And cool off a successful economy? Nobody ever does it. Hence why we end up having to do it at really bad times because we have no choice.

What do neocons have to do with this? They are about politics not economics.

We already did it Canada.  No reason to think we can't do it again.  As to your other point, are you trying to suggest there is no connection between political and economic discourse?

and it's a god damn travesty!

[Valmy]

Thank you.

Well you are welcome. I eagerly await that moment you are calling for strategic austerity in Canada.

In relation to your second point, I don't find your argument that governments should not engage in good public policy because they tend to engage in bad public policy very persuasive.

My point was there is never a good time for Austerity. There is only an uncomfortable time for it and a disastrous time for it. You have to choose one.

[crazy canuck]

As I reflect on these discussions I wonder whether I have become more left wing or whether the world around me has become more right wing.

I eagerly await that moment you are calling for strategic austerity in Canada

.

Go back to my Languish posts around the time there was a debate in this country about how we should "spend" our surpluses.  You will find that I argued strenuously that it should all be used to pay down the debt.

And why the cheap shot an my bona fides.

[Valmy]

As I reflect on these discussions I wonder whether I have become more left wing or whether the world around me has become more right wing.

If it makes you feel any better you guys are making me more left wing as time goes on

[Grey Fox]

The world has turned more right wing but it's a social right wing. They forgot how to do economic theory other than "Destroy the government".

[crazy canuck]

As I reflect on these discussions I wonder whether I have become more left wing or whether the world around me has become more right wing.

If it makes you feel any better you guys are making me more left wing as time goes on

See my post above yours as I edited it to answer your question.

[Valmy]

Go back to my Languish posts around the time there was a debate in this country about how we should "spend" our surpluses.  You will find that I argued strenuously that it should all be used to pay down the debt.

And why the cheap shot an my bona fides.

Oh CC I love it when people talk debt reduction

And as an answer to the second part because this whole 'Austerity vs. non-Austerity' debate just keeps going round and round seemingly forever. And not just here on Languish. I would just enjoy the change of pace

[Valmy]

The world has turned more right wing but it's a social right wing. They forgot how to do economic theory other than "Destroy the government".

How sad it is.