Goodale hits a home run

If you would like to view Minister Goodale's presentation, click here

The Economic Update delivered by Ralph Goodale Monday evening was very impressive, and shows just how intelligent and innovative the current Government of Canada is. There can be no denying that this Government has engineered the greatest period of financial stability and prosperity this country has ever seen. Navigating the shark infested waters of high energy prices, a tanking U.S. dollar coupled with a strengthening loonie, and provincial governments that can never get enough federal money, the Liberals have proven themselves to be the best party for the fiscal job.

Of the many highlights in Minister Goodale’s speech today, some of the more interesting were revelations of the current situation, as opposed to the future projections that tend to steal the show. Canada’s Gross Domestic Product was up %3.2 last quarter, an increase from the %2.1 it leapt in the 2 quarters previous. Net exports are also up, which is astounding considering the aforementioned surge of strength in the Canadian dollar against its U.S. counterpart. Also since 2002 1 million new jobs, most of them full time, have been created. And the Liberal government has run off 8 strait balanced budgets in a row, more than any other time in Canadian history.

But, of course, the real reason this speech is delivered is to update Parliament on the future course of the government’s fiscal policies; and here, once again, the Liberals have shined. The media, and the opposition parties have tried to paint this as being about nothing but tax cuts; and granted there were substantial tax cuts in there, but the key is: where the tax cuts go? Proper care must be taken to make sure that our money, your money goes in to the correct place, and every single penny is squeezed out of it, or else it will simply be wasted. The announcement focused on four key areas:

• - Creating opportunity for all Canadians.

The Liberal government is focusing their attention where it should be focused. Correctly noting that ideas are the fuel a strong economy needs, and setting forth plans to focus on assisting in the development of the skills and education required by the workforce.

• - Building an innovative economy.

Under the Liberal government Canada has fought hard and has been rewarded by becoming the leader of all G-7 countries in Research and Development conducted in University and Public labs. This gives us an enormous advantage in the future from both an economic and a health standpoint. The government recognizes that invention and technology are the future of Canada and will support these vital areas.

• - Making Canada a center of global commerce and networks.

Our proximity to the United States has reaped us enormous economic benefits, but it can not be sustained unless we maintain and improve our current levels of infrastructure, both those of the physical and of the telecommunication variety. With China and India emerging on the world stage as potential future economic superpowers Canada must be put in to the forefront to take advantage of these limitless opportunities.

• - Creating the best possible environment for investment in Canada.

In this area the government showed that it will never let itself become complacent and rest on its laurels. They admitted that while these numbers are improving, they are not where they want them to be. Therefore they have proposed an aggressive strategy to increase investment throughout Canada through continuing balanced budgets, debt reduction, keeping inflation in check, ongoing reductions in personal income taxes, a competitive tax system for business, and removing interprovincial barriers to the movement of people, goods, services, and capitol. This shows that the Liberal government has a wide view, and knows when it it time to change course slightly.

In Summary, after years of fiscal belt tightening and sacrifices by the Canadian people we are now reaping these dividends, we are in a position where we can afford to invest in our country without going in to deficit. This is the kind of sound fiscal management we need to continue the prosperity we have worked so hard for the last 12 years to obtain. Yet we are prepared for the bumps in the road that come at the most unexpected times. We have many challenges to face, high energy prices, the baby boomer generation retiring in record numbers, and many more we can’t yet imagine. But with the Liberals investing back in to Canada while at the same time keeping an economic security blanket for rainy days we are in great shape now and under a continued Liberal government will be for years to come.