Trudeau talks about how LPC deficits are good and CPC deficits are bad. This presentation will highlight how both Trudeau and Harper handle their fiscal management cycle.

1. JUSTIN TRUDEAU VS
STEPHEN HARPER SURPLUS
(DEFICITS)
BY: PAUL YOUNG, CPA, CGA
DATE: DECEMBER 25, 2018

2. PAUL YOUNG - BIO
• CPA, CGA
• Financial Solutions
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. INTRODUCTION
• This presentation looks at deficit and debt management by
Trudeau and the Liberals. The liberals ran a campaign in 2015
on modest deficits. It is now 2018-2019 as such the deficit is
now nearly 19B or about 3x times higher.

4. HARPER AND TRUDEAU (SMALL DEFICITS)
• http://www.torontosun.com/2016/11/02/harper-right-about-

5. STATEMENT OF OPERATIONS
• Government of Canada

6. BUDGET SURPLUS / NOVEMBER 2015
• Government of Canada

7. FY – 2015 TO 2016
• Government of Canada

8. TRUDEAU / CPC DEFICIT
• http://www.cbc.ca/news/politics/trudeau-budget-deficit-sitting-ending-
press-conference-1.4180713
CBC News – June 27, 2017

9. REFUGEE / COST – UNBUDGETED - $365M
• http://www.rcinet.ca/en/2016/11/22/bringing-25000-syrian-refugees-to-
canada-cost-385m/
The Conservatives pledge that if re-elected, they will allow a further 10,000
Syrians in over the next four years, continuing a focus on those being
persecuted because of religion. (This works out to be 2,500 as compare to
liberals plan of 25,000. The budget never reflected 22,500 new refugees.

10. JUSTIN TRUDEAU SPENDING
• http://www.torontosun.com/2017/05/11/trudeau-has-second-highest-
per-person-spending-since-1870
Prime Minister Justin Trudeau is leading one of the the costliest governments since 1870,
according to a study by the Fraser Institute released Thursday.
The study looks at per-person spending by all of the prime ministers, year over year, adjusted
for 2017 dollars. According to its data, the Liberal prime minister's budget for 2017 amounts to
the second highest year for spending, with a projected $8,337 per-person spending, putting it
just $38 shy of Stephen Harper's 2009 Conservative government, which was dealing with a
recession.
Since taking office in 2015, Trudeau has also increased per-person spending at an average of
5.2% a year, which is far higher than Harper's, whose spending, from 2006 to 2015, increased
at an average of 1.3% per year. This even eclipses that of his late father, Pierre Elliott Trudeau,
the Liberal prime minister from 1968-1978 and 1980-1984, whose average spending increase
was 4.2% per year.

11. TRUDEAU ON DEFICITS
• https://www.youtube.com/watch?v=py1t3tGqCuk or http://www.cbc.ca/news/politics/canada-election-2015-
stephen-harper-jobs-analysis-1.3254371 http://www.nationalobserver.com/2015/05/21/news/harper-worst-
prime-minister-economic-growth-great-depression-trudeau
OTTAWA — "Prime Minister Harper has the worst record o
any prime minister on economic growth since R. B. Bennet
in the depths of the Great Depression." — Liberal Leader
Justin Trudeau, Friday, May 15, 2015.
Though Justin Trudeau said it as recently as last week, the
Liberals have been claiming since at least 2013 that
Canada's economic growth under the Harper-led
Conservative government has been the worst since the
1930s.

12. BLOG #1 – DEFICIT
Here are some factors from the government documents
that for some reason you did not read
1. 2009-2010 Budget -
http://www.budget.gc.ca/2009/pdf/budget-
planbugetaire-eng.pdf - page 24 discusses the
automotive loans - Offering short-term repayable loans
to the automotive sector in collaboration with the
Ontario and U.S. governments or page 82 The
Government, through EDC, has contributed almost $3
billion in short-term loans to support the automotive
industry in Canada.
2. GM file for bankruptcy protection as it restructured its
business - http://www.cbc.ca/news/business/car-giant-
gm-files-for-bankruptcy-protection-1.812398
3. Chrysler also filed for bankruptcy protection -
http://www.forbes.com/2009/05/06/chrysler-gm-fiat-
bankruptcy-opinions-columnists-nouriel-roubini.html
4. Ford never asked for bailout

13. BLOG #1 – DEFICIT What is the value the government recorded those shares on the financial
Statements?
http://www.thecanadianpress.com/english/online/OnlineFullStory.aspx?file
name=DOR-MNN-
CP.ecd551301cb345bf829a8baced24da04.CPKEY2008111300&newsitemid=
32623847&languageid=1
1. The government purchased the shares – “Late Thursday, a finance
official said the shares were initially booked at a value of
$15.31 per share.:
2. The government sold the shares for what price?
http://www.bloomberg.com/news/articles/2015-04-
06/canada-to-sell-final-73-4-million-shares-of-gm-from-
bailout. It seems there was gain on selling the sales.
3. Government records revenue and expenses as such if the
government is going to lose money on share offering then
that would have meant a higher deficit. The government
made money off the share value.
4. Chrysler paid back the loans -
http://www.cbc.ca/news/business/chrysler-nears-7-5b-bailout-
payback-1.1026704
5. GM - http://www.cbc.ca/news/canada/windsor/ottawa-doesn-t-regret-
gm-bailout-1.880819

14. BLOG #2 - DEFICIT

15. BLOG #3 – DEFICIT
• TWEET: GDP and Deficit
• https://www.youtube.com/watch?v=31WB8O_5lc4
•
• Harper and finances - https://www.youtube.com/watch?v=4xGM6_RQIsw
•
• Opposition -
•
• This video is from earlier in the year, but shows Trudeau blaming Harper. The funny thing nothing was
mentioned about the global recession. Liberals love to hide that information from view.
•
• GDP growth rate for 2016 and 2017 is 2.2% which is on par with the past 15+ years. If you ignored the
recession then GDP would be 2.2% under Harper which is like what Trudeau has achieved since taking
office. https://www.slideshare.net/paulyoungcga/truth-gdp-canada-december-2017 or
https://www.slideshare.net/paulyoungcga/fiscal-management-conservative-party-of-canada-pm-
harper or https://www.slideshare.net/paulyoungcga/2018-fiscal-management-plan-canada-february-
2018

16. NO BALANCE BUDGET UNTIL 2040
Source - https://globalnews.ca/news/4787265/federal-budget-balance-
The federal budget won’t be balanced until at least 2040,
the Finance Department said Friday, providing fresh figures
for parties looking to position themselves with voters as
the best stewards of the public purse.
Federal officials estimate it will take another 22 years to get
a balanced budget – five years earlier than the Liberal
government predicted last year – if there are no major
economic shocks or new government spending.

17. TRUDEAU / DEFICITS
• Trudeau is only looking at one ration (Debt
to GDP) and not other ratios
• Based on both the PBO and Finance Dept
the budget will not be balance for 22 years.
https://www.cbc.ca/news/politics/finance-
department-budget-balance-projection-
1.4956649
• Canada has a structural deficit which
Trudeau does not seem to grasp
• Canada economic growth is on par with the
past 17+ years -
https://www.scotiabank.com/ca/en/about/
global-economics/scotiabank-forecast-
tables.html
• Liberals deficits are good but CPC deficits
are bad, right?
https://www.slideshare.net/paulyoungcga/
cpc-fiscal-and-economic-analysis-pm-
harper-years

18. GDP GROWTH
Source - OECD

19. LIBERALS AND SLOW GROWTH
• http://www.cbc.ca/news/politics/finance-liberals-economy-budget-morneau-
consultations-jobs-1.3883770

20. BLOG – DEFICIT AND DEBT
• Canada has structural deficit now. I did work on the budget and it
is full of holes.
• Hey Don, why do you never asked Morneau, Trudeau or others
why $59B in deficits is only supporting 2.1% GDP growth. Harper
had 2.3% GDP growth after the recession.
• https://www.slideshare.net/paulyoungcga/gdp-canada-real-
truth-march-2018 or
https://www.slideshare.net/paulyoungcga/stephen-harper-and-
cpc-fiscal-record-june-2018

21. PAUL MARTIN / DEFICIT MANAGEMENT
• This provides a great context on how Martin was able to slay the deficit and reduced the debt! The LPC will never say
that hardship was felt by cuts to services and/or raiding of funds or the facts spending was delayed to future periods
(i.e. transfers to the provinces or infrastructure):
http://www.canadahistory.com/sections/eras/moderncanada/budget_surplus.htm or
https://www.policyalternatives.ca/newsroom/news-releases/martins-economic-record-marked-increased-income-
inequality-no-real-wage-gains
• Or
• BTW: Is JT’s Advertisement not talking about the cost of living or stagnation with wages? So, if Harper is to blame then
so should Martin, right? Was Martin not LPC member?
• Liberal Party of Canada never once commented on the above posts, but say Martin slay the deficit/debt! It is not just
about the overall result, but what happen down the road when Mr. Harper took office as part of restoring dedicated
funding to the provinces and/or infrastructure and the increasing of direct program spending:
http://www.slideshare.net/paulyoungcga/canada-deficit or http://www.slideshare.net/paulyoungcga/municipalities-
canada or http://www.slideshare.net/paulyoungcga/provincial-transfers-and-program-spending. Or
https://www.policyalternatives.ca/sites/default/files/uploads/publications/National_Office_Pubs/hellandhighwater.pd
Source -
https://www.policyalternatives.ca/public
ations/monitor/beware-canadian-
austerity-model
Paul Martin Deficit Reduction Plan

22. BLOC, NDP AND LIBERALS SIGNED
AGREEMENT
• “Dion, who previously announced he would step down as Liberal leader,
also pledged he would hand over "a strong government for a stronger
Canada" to his Liberal successor on May 2. I am honoured to do that,"
Dion said. Layton said the accord's proposed multibillion-dollar stimulus
package for the troubled economy, which includes support for the auto
and forestry sectors, is "prompt, prudent, competent and, most
important, effective.“ This Parliament has failed to act, and it falls on us
to act," Layton said.
”Source - https://www.cbc.ca/news/canada/liberals-ndp-bloc-sign-deal-
on-proposed-coalition-1.700119

23. SUMMARY
• Trudeau has grown spending on average 5.2% or about 2.5 times GDP
• Trudeau has committed $2.65B or more to the United Nationals
• Canada was hit with GDP drop in 2016 due to wild fires in Alberta. Justin
Trudeau two year average for GDP growth is 2.0% which is on par with the
past 16+ years
• Liberals ran election campaign on $10B deficits and now claim part of the
$22B deficits are structural issues left by the CPC
• Canada has a structural deficit as revenues continue to be challenge through
slow growth.