How I would phrase it is that fiscal discipline and growth are not only both necessary, they are both essential. If you take those two phrases and say by fiscal discipline you mean cutting, and by growth you mean spending, then yes they are incompatible. But I don’t think it’s that simple of equation. I do think that all economies need a sense of fiscal discipline especially over the midterm and if you are in the middle of a debt crisis you can’t borrow your way out of a debt crisis. That’s logically impossible. But at the same time you do need, as we are doing in Canada, you need to undertake a range of measures, not just fiscal discipline, to ensure growth. We have an ambitious trade agenda, we are revamping our science and technology policies to get better results, as you know we’re doing labor market reforms, were doing regulatory reforms. These are all things that need to be done to increase the growth capacity of our economy. Where I occasionally get troubled is when I hear some leaders who are in the midst of, let’s face it – very, very difficult fiscal and public opinion situations, things that are nowhere close to the kind of situation we experience, when I hear some leaders talking that way, and they say growth, it sounds like they are looking for some easy way to deal with the problem when in fact the changes you have to make in terms of growth policies are often politically very challenging as well.
Beyond The Commons
Aaron Wherry covers all the goings-on in and around Parliament Hill. Follow Aaron on Twitter: @aaronwherry