BC Budget Update
 

Well it seems that economic reality has caught up with the BC provincial government - cuts all round according to global bc news this evening.

I'm still making my mind up about whether they have got it right or not. Philosophically I am always going to prefer anything that makes government smaller - so I ask myself did they go far enough? Anyone got a more reasoned view?

Re: BC Budget Update
 

I don't like government deficits - to me they just transfer the burden of taxation from us to our children. That said, if there ever is a time to run a deficit it is now.

I like the income tax cuts that balance the increased HST take. Transferring taxation from income to spending generally has a positive effect on economic growth. (Steven Harper, please take note.)

I also notice that the government are now saying there will a a provincially managed rebate to offset HST on domestic fuels. This had to happen and I am glad they announced it now, rather than letting it be dragged out later.

Is the budget enough? Listening to the commentators on the radio this morning there seems to be two opinions. (Economists disagreeing, whatever next?):

a) Hansen has been overly pessimistic.
b) He hasn't taken into account a double dip recession in the US if the US do not replace the stimulus spending once it runs out.

I'm inclined to side with a), but then I have never believed this is the end of the world order, or that the sky is about to fall.

Re: BC Budget Update
 

I think they said they would reduce the number of government employees by 1%. It is a very modest cut, especially as they won't need anyone to administer PST after July 1, 2010.

Re: BC Budget Update
 

I was also pleased to see a HST rebate on domestic fuels. That was my biggest issue with the new tax.

As for your a/b, it's trite to say that the truth probably lies somewhere in between. But in this case I suspect it really does. My view is that the the worst *may* be over, but that doesn't mean it's suddenly going to get better. I think the central bankers have actually managed to prevent the total collapse of the system using some extraordinary monetary policy. However the cost has been huge, all that future productivity brought forward to today is going to cause any long term growth to be slow and drawn out. As you say - the next generation will have to pay one way or another.

Anyway, aside from that, I am more inclined to go with b) - although I don't think we will see a new world order - at least for a few years:p

Re: BC Budget Update
 

you rich or what?

Re: BC Budget Update
 

No - I live on the street with tramps.

Edit: and that's a great third post btw ;)

Re: BC Budget Update
 

helping out with soup?

Butch - C'mon?

Re: BC Budget Update
 

He's on holiday or something.