New budget will not jump start the economy

We went to bed unsettled and woke up assured the new budget is pretty weak and will not jump start the economy. CIBC Economist Jeff Rubin told CBC it was a “down payment on the recession. We’ll be back looking for more within six months.” $80 billion and its not enough, or not the right spending. The labour people on PEI say it does nothing for the workers and the poor and they are correct. The NDP and Bloc don’t like it. The Bloc, like Atlantic Canada, are asking for Employment Insurance reform to help laid off workers. They didn’t get it.

PEI’s Treasurer Wes Sheridan is scratching his head trying to figure out how he will squirm and worm his way into those new spending programs. They are all cost shared. Essentially, the PEI capital budget is out the window as we struggle to maximize Federal dollars on every bit of capital spending on PEI.

Out in Stephen Harper country, the Calgary Herald reports Budget comes up short, Alberta panel reckons – Stimulus won’t work, experts agree; Delivering Disappointment. The headline is chock full of negativity. The panel makes a good point. 80% of Canada’s business is with the US. Until the US economy picks up, we are cooling our heels. Why bother with all the big construction projects which only increase debt without helping starving citizens.

Unemployed middle class people who have big mortgages and high costs are becoming desperate. The LA Times reports Los Angeles man kills his 5 children, wife, self after their both were laid off and became despondent. The relief should come to people not big corporations.

PS, don’t rush out and spend your big $115 tax savings. You may need it for food money. If the Liberals let the Budget pass, we’ll report on the personal finance implications as they become clearer.