Conservative leader Stephen Harper mocks Liberal Leader Justin Trudeau's plan to run 'tiny little deficits' for the next three years.

ELECTION 2015: Economic slump dominates campaign

Justin Trudeau's plan to run deficits for infrastructure spending changes focus for Thomas Mulcair, Stephen Harper

Sliding stock markets and sagging natural resource prices have raised the stakes for the Oct. 19 federal election, as parties try to position themselves as the best choice to deal with an economic slump.

Statistics Canada’s release of data showing small contractions of the Canadian economy in the first two quarters of the year sparked a prolonged exchange between party leaders over whether the country is or was in a recession.

Economists such as Central 1 Credit Union’s Helmut Pastrick have mostly agreed the downturn is primarily based on low oil and gas prices, and isn’t a full-fledged recession. Central 1 forecasts continued slow economic growth for southern B.C. based on the low Canadian dollar and improvement in the U.S. economy.

Conservative leader Stephen Harper noted that the statistics showed a return to economic growth in June, and he accused Liberal leader Justin Trudeau of over-reacting to “a couple of months of weak data” to commit his party to up to three years of deficit spending.

Trudeau’s abrupt change of position on running deficits of up to $10 billion a year has redefined the debate. Trudeau unveiled what he called the biggest infrastructure plan in Canadian history, doubling the current Conservative budget from $5 billion to $10 billion in the next two fiscal years and continuing to increase it over 10 years.

Touring the Okanagan, NDP leader Thomas Mulcair touted his plan to reduce small business taxes and provide tax breaks for manufacturing, while balancing the budget in the first full year of an NDP mandate.

Mulcair’s promises of tax cuts and spending control prompted both the Liberals and Conservatives to accuse the NDP of creating a huge revenue hole that could only be filled by spending cuts or new tax increases.

The Conservatives estimate that Mulcair’s plans for a national daycare program, increased foreign aid and other spending leave a gap of $8 billion in the first year. The Liberals estimated the NDP budget gap at $28 billion over four years, not counting unspecified increases for veterans and home care.

NDP candidate Andrew Thomson called the Conservative calculation “deliberately misleading,” inflating the NDP’s housing plan cost by more than five times.

Harper has mainly run on his government’s record, including an increase in the Universal Child Care Benefit and cutting the Goods and Services Tax. The Conservatives estimate their measures have benefited the average family by up to $6,600 a year.

 

Just Posted

Hope students visit Chilliwack’s second annual Youth Housing Conference

Hosted by Tzeachten First Nation and CMHC, the Conference is aimed at Aboriginal youth 15 to 30

Newly elected Hope politicians took part in the Local Government Leadership Academy

The three-day event is aimed at helping new mayors and councillors navigate municipal politics

Trudeau’s principal secretary, Gerald Butts, resigns amid SNC-Lavalin furor

Butts categorically denies the accusation that he or anyone else in the PMO improperly pressured former attorney general Jody Wilson-Raybould

VIDEO: Winterhawks end Giants winning streak at seven

Playing on home ice, Vancouver’s G-Men fell 5-3 during a Family Day game against Portland.

Aaron Pritchett and George Canyon to headline Gone Country concert in Cloverdale this summer

‘Early bird tickets on sale via Twins Cancer Fundraising website

Lost a ring? This B.C. man will find it for you

Chris Turner founded The Ring Finders, an international directory of metal detector hobbyists

Poverty coalition has high hopes for B.C. poverty reduction strategy

Funding allocation expected to be released with 2019 budget

‘How did we get here?’: B.C. mom of transplant recipient worries about measles outbreaks

Addison, 7, cannot get a live vaccine because she has a heart transplant

NDP Leader Jagmeet Singh calls for public inquiry over SNC-Lavalin questions

Vancouver member of Parliament Jody Wilson-Raybould resigned from cabinet last week

Canadian airlines waiting for guidance from Ottawa over X gender option

Major U.S. airlines said they will change their process so passengers can identify themselves along non-binary lines

UPDATE: Plane flips over at Pitt Meadows airport

The pilot and lone occupant exited the aircraft on his own and uninjured.

Most Read