How Canada Cut Spending and Got a “Payoff Decade”

By:  Bob Adelmann
11/28/2011
       
How Canada Cut Spending and Got a “Payoff Decade”

From Reuter’s interview with former Canadian Prime Minister Jean Chretien in August came a much fuller understanding of the forces that moved the Canadian economy from a basket case to a decade of robust growth and budget surpluses.

A liberal much in the mold of liberals in the Democrat Party in America, Chretien took over in November 1993 as his country was suffering from high unemployment, a stagnant economy, and increasing interest rates on its national debt. Its ratio of debt-to-GDP was approaching 70 percent while its annual deficits were nearly 6 percent of GDP and increasing. The economy was ranked just above Italy among the Group of Seven, Canada’s peers. As Scott Clark, Chretien’s Deputy Finance Minister put it: “We used to thank God that Italy was there because we were the second worst in the G7.”

In a rare interview, Chretien was forthright about what happened to turn the economy around and set the stage for the country’s “Payoff Decade.” He said, “There would have been a day when we would have been the Greece of today. I knew we were in a bind and we had to do something. I said to myself, I will do it. I might be Prime Minister for only one term, but I will do it.”
 

From Reuter’s interview with former Canadian Prime Minister Jean Chretien in August came a much fuller understanding of the forces that moved the Canadian economy from a basket case to a decade of robust growth and budget surpluses.

A liberal much in the mold of liberals in the Democrat Party in America, Chretien took over in November 1993 as his country was suffering from high unemployment, a stagnant economy, and increasing interest rates on its national debt. Its ratio of debt-to-GDP was approaching 70 percent while its annual deficits were nearly 6 percent of GDP and increasing. The economy was ranked just above Italy among the Group of Seven, Canada’s peers. As Scott Clark, Chretien’s Deputy Finance Minister put it: “We used to thank God that Italy was there because we were the second worst in the G7.”

In a rare interview, Chretien was forthright about what happened to turn the economy around and set the stage for the country’s “Payoff Decade.” He said, “There would have been a day when we would have been the Greece of today. I knew we were in a bind and we had to do something. I said to myself, I will do it. I might be Prime Minister for only one term, but I will do it.”

Click here to read the entire article.

Photo of Jean Chretien: AP Images

The JBS Weekly Member Update offers activism tips, new educational tools, upcoming events, and JBS perspective. Every Monday this e-newsletter will keep you informed on current action projects and offer insight into news events you won't hear from the mainstream media.
JBS Facebook JBS Twitter JBS YouTube JBS RSS Feed