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How to cut a fifth of government spending like Canada

This is a discussion on How to cut a fifth of government spending like Canada within the Economy forums, part of the Topical Discussion category on Politics.ie. As described in The Times,the Liberal Canadian government in 1994 cut government spending by a fifth in order to eliminate ...

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Old 7th July 2009
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Default How to cut a fifth of government spending like Canada

As described in The Times,the Liberal Canadian government in 1994 cut government spending by a fifth in order to eliminate a federal deficit of 9.2% of GDP. Nasty cuts or nice cuts, there will be blood | Rachel Sylvester - Times Online

Surprisingly,despite the huge cuts,the government was reelected as the public recognised that the cuts were done efficiently with the economic pain shared widely. Historically,the Liberals were big spenders on the welfare state.

The key to the success of the austerity programme was a reduction in the federal government
spending on defence;massive cuts in transport spending and in industrial,regional and agricultural subsidies; and a 23% reduction in the number of state employees.

Last edited by patslatt; 8th July 2009 at 11:17 AM.
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People aren't stupid. If they trust the government and the government's cuts work they will swallow them, they may not be too happy but the public will understand.

They, for good reason, simply do not trust the current government and the government have proven themselves rather incompetent so their cuts would be unlikely to work, for something like this to work we need Enda Kenny as Taoiseach.
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its what is needed as well, there is always waste that can be cut with no one suffering.
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Quote:
Originally Posted by sandar View Post
its what is needed as well, there is always waste that can be cut with no one suffering.
Yes, and this waste should be constantly trimmed during the good times too. We should not wait for bad times to start thinking about value for money.
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Originally Posted by Drico View Post
People aren't stupid. If they trust the government and the government's cuts work they will swallow them, they may not be too happy but the public will understand.

They, for good reason, simply do not trust the current government and the government have proven themselves rather incompetent so their cuts would be unlikely to work, for something like this to work we need Enda Kenny as Taoiseach.
Enda has said that no public sector worker making less than €100,000 a year would experience a cut in pay,which means most of them would be exempt from a cut.
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Like Canada?

Now they are throwing away billions in Afghanistan. Austerity one day ... squander the next.

Not to be emulated.
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Like Canada?

Now they are throwing away billions in Afghanistan. Austerity one day ... squander the next.

Not to be emulated.
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Quote:
Originally Posted by patslatt View Post
Enda has said that no public sector worker making less than €100,000 a year would experience a cut in pay,which means most of them would be exempt from a cut.
The Labour Party think there should be cuts only for those earning over 200k, whereas the SWP/PBP folks think it should be limited to the handful on over 250k!

So by comparison, Enda's 100k threshold sounds positively draconian

In reality the threshold will have to go a lot lower, otherwise the cut will save so little as to be not worth worth doing except for the optics. Which is to say, not worth doing at all, seeing as we need a tad more than optics at this stage.
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Old 8th July 2009
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Quote:
Originally Posted by Drico View Post
People aren't stupid. If they trust the government and the government's cuts work they will swallow them, they may not be too happy but the public will understand.

They, for good reason, simply do not trust the current government and the government have proven themselves rather incompetent so their cuts would be unlikely to work, for something like this to work we need Enda Kenny as Taoiseach.
I'd rather have the current government thanks!
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Quote:
Originally Posted by Proposition Joe View Post
The Labour Party think there should be cuts only for those earning over 200k, whereas the SWP/PBP folks think it should be limited to the handful on over 250k!

So by comparison, Enda's 100k threshold sounds positively draconian

In reality the threshold will have to go a lot lower, otherwise the cut will save so little as to be not worth worth doing except for the optics. Which is to say, not worth doing at all, seeing as we need a tad more than optics at this stage.
So the "Labour party" TD's do not want to see their own salaries cut..
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