Posts Tagged ‘federalism’
Spacing Toronto’s John Lorinc argues that a leaked federal government report predicting very high levels of debt in decades to come can, from the perspective of cities, best be read as a warning that hoped-for federal funding in infrastructure is not coming.
The little explosion of sweaty news last week about an apparently buried federal report predicting “decades” of gigantic deficits added just a bit more fuel to the fire crackling around Justin Trudeau’s feet. The key take away was that net debt levels, driven by anemic GDP growth and an aging population, will crest at $1.55 trillion by the 2050s.
The short-hand media analysis focused more on that great big scary number than the complex political dynamic this analysis will set in motion.
I’m not talking about the short-term melodrama. The report obviously feeds into the emerging narrative of the Trudeau government as profligate and beholden to wealthy lobbying interests while increasingly isolated in a world that’s become fixated on the brain-stem appeal of nativist politics. It also gives Kevin O’Leary and the rest of the Conservative leadership pugilists a new talking point, allowing them to change the channel away from Kellie Leitch’s tone-deaf immigrant bashing.
Rather, when I scanned at this report, which is built on the sturdy and seemingly apolitical timber of long-term demographic and productivity analysis, two points struck me:
One, while the media reports presented the document as something the government released as quietly as a church mouse skittering around on Christmas eve, the language in the document bears the unmistakable signs of a political edit: “As this demographic transition unfolds,” the unnamed Department of Finance author states at one point, “the Government will continue to take smart decisions and make sound investments to build Canada’s economy of the future and create an economy that works for the middle class [emphasis added].”
These, clearly, are not the words of some nerdy government economist.
So? I’d argue this document was absolutely intended to be discovered, thus subtly sending the signal that Ottawa is keeping a watchful eye trained on long-term economic and spending trends.