Federal budget turned a blind eye to Canada’s economic challenges
Finance Minister Bill Morneau’s 2018 federal budget does nothing to address serious concerns over Canada’s economic prospects or the challenges emerging from the United States.
In some respects, the budget makes matters worse by continuing the government’s self-destructive policies of chronic deficit-financed spending and new taxes on entrepreneurs.
What challenges does the Morneau budget ignore?
For starters, the document makes clear that the relatively strong economic growth of 3.0 percent in 2017 was a blip, and that Canada’s growth is expected to fall to 2.2 percent in 2018 and 1.6 percent in 2019. The Department of Finance forecasts economic growth will average just 1.8 percent for the next four decades – compared to average growth of 2.7 percent over the previous four decades.