Mr. Poilievre does not understand one simple thing. The federal government's debt-rating hinges to some extent on the ability of provinces to service their own debt. The reason for this is that the federal government would be seen as the lender of last resort. /2 #cdnpoli
2/ Most recently, NL. Back in the days of the Mexican Peso Crisis, it was critical that the federal government deal with its deficit problem (at high interest rates) because at least two provinces were at risk of not being able to float their own debts. /3
3/ Numerous global agencies (OECD, WMF, etc.) have cautioned governments against austerity. The Conservatives should know better, having throttled the post-financial crisis recovery because of their self-serving desire for a 2015 campaign plank ("balance"). /4
4/ The Financial Post covers the business community crying for stimulus, rent relief, wage subsidies, etc., and then the business community punditry fear-mongering about government debt. Pure, blind hypocrisy.
Mr. Poilievre and the pro-CPC press is beating a dead horse because the Conservatives have no ideas, are stuck in the 90s, and are seemingly content to play their broken record.
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