Couldn't agree more... that's it exactly.
To pay off debt, you must increase revenues, decrease expenditures, or some combination of both. No secret there; unless there's a magician in the house, it's gonna hurt. History tells us it's always ordinary people who get hurt the most.
So that's what the central government did, and you can bet that's what the Europeans will do too. Because there's simply no other option.
" By 1994 the Canadian economy was in a deep recession, and in February of that year Martin slashed funding for unemployment insurance and closed several military bases. In 1995, he presented a landmark Canadian budget. Determined to reduce the Canadian deficit, he cut the spending of virtually every federal department, reducing government expenditures by more than $25 billion (spread over three years) and eliminating 45 000 public service jobs. Federal transfer payments to the provinces for health and education were slashed by $7 billion. Though he was criticized for cutting social programs, his popularity was undiminished. The Chrétien government won a second majority in 1997, in no small part on account of Martin's record.
By 1998, Martin had erased the $42 billion deficit he had inherited, establishing a reputation at home and abroad as a fearless "deficit cutter." He achieved a balanced budget for the fiscal year 1997-98, and was later able to present consecutive budget surpluses, expand government spending, and cut income tax rates. The Liberals won again in the election of 2000, another victory that had much to do with Martin's success as the most influential finance minister in decades."
thecanadianencyclopedia.com
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Riddle me this: what was the "right" way to cut debt and deficits, that Martin didn't see?
Jim |
