Friday, January 1, 2010

Business and Labour concerned about coming Federal Cuts.

Conservatives will always use deficit reduction as a rationale for cutting entitlement spending. Many business groups however often applaud such cuts. In the case of St. John's it probably worries because it may receive considerable help from Ottawa. Milton Friedman the former guru of free market ideology claimed that contrary to many conservatives deficits could be positive because they provide a justification for cutting out government entitlement programs. We are likely to see this in coming years whether Harper stays in power or Ignatieff miraculously gets elected. This is from vocm.

Business and Labour Concerned Federal Cuts Coming

The St. John's Board of Trade is raising concerns after recent comments from the Prime Minister. Stephen Harper has indicated the federal deficit will decrease because there will be a reduction in growth in spending. Board of Trade Chair Bruce Templeton says the federal government's track record isn't comforting. He says in less than 10 years, the federal government's expenses will have increased by almost a third. Templeton says that it looks like the federal government will have to cut programs and services just to balance budgets and he's concerned how that will affect this province.

The Public Service Alliance of Canada says it is quite concerned that federal government jobs could be cut if the Conservatives form a majority government in the next election. Spokesman Larry Welsh says government is currently running a significant deficit and he fears that could spell trouble.

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