
Photo: Globe and Mail
If there is any truth to the term “incrementalism” pertaining to the theory of the Conservatives gaining voter trust and respect in order to earn a majority mandate, it is in their incremental abandonment of principle for expediency. In last year’s October election, the incumbent Conservative government ran on a rather ill-defined platform which, nevertheless, insisted it would not alter it’s fiscal agenda to maintain Canada’s reputation as one of balanced budgets. In September of 2008, Stephen Harper is quoted as saying:
“If you look at the tens of billions of dollars of announcements they are making, the only way these can be financed are not simply through big increases in taxes that they’re already promising — carbon taxes, GST — but it would mean deficits and large deficits, big deficits.”
Then as close to the election as October 13, one day before the election, the Prime Minister was unequivocal about staying true to fiscal conservatism:
“Let me perfectly clear. A Conservative government will not be raising taxes… we will not cancel planned tax reductions for business. We will not be running a deficit. We will be keeping spending within our means,” he declared in a campaign speech in Toronto.
“There’s no way the prime minister should start panicking during a stock market fall, or should start making up a new economic policy in the middle of a campaign.”
Incredibly, less than a month after the election run on a premise that it was the Conservative Party of Canada that was the only candidate that would not run on a deficit, Finance Minister Jim Flaherty had changed his tone considerably. On November 22, the first devastating shock, as Mr.Harper announced at APEC that a budget deficit was now “essential” if economic stimulus would be required for the downturn. This was followed up shortly after with the infamous economic update that led to a constitutional crisis and the prorogation of Parliament.
Then, in the new year Parliament reconvened, with the Conservatives officially committing to budget deficits of a “temporary” nature. In a stimulus budget that promised deficits of $86 billion over five years, John Ivison of the National Post wrote a comparison of Stephen Harper to former deficit Premier of Ontario Bob Rae, with Parliamentary Budget Officer Kevin Page at the time suggesting there was a “significant risk” the federal budget would not return to surplus in 2013-14.
Fast-forward to July of 2009, and we’re at a new threshold of fiscal uncertainty based on the statements of the current government. The Prime Minister acknowledged while at the G8 summit in Italy that deficits run by the government could extend beyond the “temporary” five years if the recession is prolonged, or our recovery is weaker than expected. When pressed on whether he would take any action to correct the fiscal deficits, he iterated in what can only be described as an abandonment of all fiscal principle, that he would not either raise taxes or cut spending, but stay the course:
“Let me be very clear on this: we will allow the deficit to persist if necessary,” he said. “We will not, in order to meet some timetable, start raising taxes and cutting programs. That’s a very dumb policy.”
What we have here is an admission by our Prime Minister that he will do nothing to rock the boat, to make the difficult decisions necessary to arrive at a balanced budget, to either cut the exorbitant and wasteful spending of this government, or face the risk of another election for his choices. The theory of incrementalism has been exposed as being nothing more than supplanting the Liberal party with the Conservatives as the big spending, big government party of Canada. Even as Canadians witness yet another flip-flop on fiscally conservative principle, perhaps the last one, they have lost confidence that this government can meet the expectations put forth in their own prognostications. Canadians say they want the government to cut spending in order to meet budget commitments, but this is a government that will not risk the grasp they have on whatever ineffective and useless mandate they have in Ottawa. As our Prime Minister has so tactfully put it, “we don’t believe there’s any need to do a systemic cutting of programs.”
“That’s a very dumb policy.”