The Conservative government sketched out on Thursday its initial plans to return to budget balance, by targeting cuts in the public service, a freeze on foreign aid, limited growth in military spending and higher EI premiums.
The spending restraint, outlined in its 2010 budget, would net $17.6-billion in savings over five years and bring the deficit down from a high of $53.8-billion this fiscal year, ending March 31, to a low of $1.8-billion by 2015.
Before the cuts kick in, however, the Conservative government said it was committed to spend $19-billion as part of year two of the two-year $47-billion stimulus package aimed at resuscitating the economy after the global financial crisis.
The 451-page budget sets out how the Conservatives plan to meet all its goals — of creating jobs and bolstering Canada’s long-term competitiveness, while at the same time returning to surplus without tax increases, nor cuts to transfers to provinces and individuals. The government also said it would go through with cuts to corporate income taxes, from 19% to 15% by 2012, despite calls from opposition politicians to cancel them and use the money to help seniors and the poor.
“We are building Canada’s reputation as an investment-friendly country,” Finance Minister Jim Flaherty said in his budget speech. “A country committed to free and open trade, unburdened by massive debts and [the] higher taxes of our competitors.”
[…]Even though Canada’s economy is recovering at a rather robust clip of late — 5% growth was recorded in the final quarter of 2009 — Mr. Flaherty said following through with more stimuli is the right thing to do as the global recovery is in its nascent stages.
Measures linked with the stimulus plan will expire as of March next year, and with it comes a plan to return to budget balance.
It’s like their entire country is being run by grown-ups! Why can’t we have that here?
At its start, in 1966, Medicare cost $3 billion. The House Ways and Means Committee estimated that Medicare would cost only about $ 12 billion by 1990 (a figure that included an allowance for inflation). This was a supposedly “conservative” estimate. But in 1990 Medicare actually cost $107 billion.
In 2007, total Medicare spending was $431 billion! That isn’t even close to the costs predicted in 1965. Why do we act like the numbers coming out of Congress and the CBO have any basis in reality?
In 1987, Congress projected that Medicaid – the joint federal-state health care program for the poor – would make special relief payments to hospitals of less than $1 billion in 1992. Actual cost: $17 billion.
The list goes on. The 1993 cost of Medicare’s home care benefit was projected in 1988 to be $4 billion, but ended up at $10 billion. The State Children’s Health Insurance Program (SCHIP), which was created in 1997 and projected to cost $5 billion per year, has had to be supplemented with hundreds of millions of dollars annually by Congress.
This is always good thing to remember when people try to pass massive new programs – and this goes for Republicans too, e.g. – Bush’s Medicare prescription drug benefit. Blech!
Obama met with Republicans to discuss his health care plans. The Republicans selected a team of experts including three of my favorite conservatives, Marsha Blackburn, Tom Coburn and Paul Ryan. How did they do against Obama? Did we win?
CNN’S DAVID GERGEN: “Intellectually, the Republicans had the best day they’ve had in years. The best day they have had in years.” (CNN’s “The Situation Room,” 2/25/10)
CNN’s DAVID GERGEN: “The folks in the White House just must be kicking themselves right now. They thought that coming out of Baltimore when the President went in and was mesmerizing and commanding in front of the House Republicans that he could do that again here today. That would revive health care and would change the public opinion about their health care bill and they can go on to victory. Just the opposite has happened.: (CNN’s “Live,” 2/25/10)
CNN’s GLORIA BORGER: “The Republicans have been very effective today. They really did come to play. They were very smart.” (CNN’s “Live,” 2/25/10)
CNN’s GLORIA BORGER: “They took on the substance of a very complex issue. … But they really stuck to the substance of this issue and tried to get to the heart of it and I think did a very good job.” (CNN’s “Live,” 2/25/10)
CNN’s GLORIA BORGER: “They came in with a plan. They mapped it out.” (CNN’s “Live,” 2/25/10)
We won. By a landslide. And even the left-wing media admits it.
Now how did we win?
Lamar Alexander
Lamar Alexander makes the opening statement. He is fairly moderate, and has a history of stepping across the aisle to work with Democrats.
Part 1:
Part 2:
Marsha Blackburn
Marsha Blackburn makes Barack Obama admit that his refusal to allow people to buy plans out of state with no mandated coverages means that they will be paying too much for health care. Obama replies that he is happy with redistributing wealth from healthy young people to older people who ought to have saved their own money for their own health care expenses.
Paul Ryan asks Obama how the implications of Obamacare on the federal budget. Why is Obama ignoring the analysis done by his own Congressional Budget office? Why does the government have to control health care? Why can’t people buy the health care that they choose with their own money?
Tom Coburn
Coburn talked about ways to reduce the cost of health care without having the government take it all over. I’ll post Tom Coburn’s full video when I find it.
Here’s the last 95% of the speech, just missing the first paragraph, really.
UPDATE: Michelle Malkin’s latest column evaluates the health care summit.
Excerpt:
When he wasn’t cutting off Republicans who stuck to budget specifics and cited legislative page numbers and language instead of treacly, sob-story anecdotes involving dentures and gall stones, President Obama was filibustering the talk-a-thon away by invoking his daughters, rambling on about auto insurance, and sniping at former GOP presidential rival John McCain. “We’re not campaigning anymore,” lectured the perpetual campaigner-in-chief.
After ostentatiously disputing the GOP’s claims that health care premiums would rise under his plan, Obama walked it back. Confronted with more GOP pushback on the failure of Demcare to control costs, Obama told GOP Rep. Paul Ryan that he’d rather not “get bogged down in numbers.” Not numbers that he couldn’t cook on the spot without staff consultation, anyway.
Obama and the Democrats labored mightily to create the illusion of almost-there bipartisanship by repeatedly telling disagreeing Republicans that “we don’t disagree” and “there’s not a lot of difference” between us. But the dogs weren’t riding the ponies in this show.
Obama must be so shocked to find that not everyone in the world is a racist/communist/terrorist/tax cheat. This is his first exposure to a different point of view. He’s in shock.
WINTERY KNIGHT 