Introduction

The frequent accusations against the Liberal and New Democratic Party (NDP) regarding their fiscal management are sometimes questionable. It is often stated that these parties spend money recklessly and increase taxes, leading to negative budget outcomes. However, the historical and factual evidence suggests a different narrative. This analysis aims to debunk the common myths and provide a factual picture of the fiscal performance of these political parties.

Conservative Propaganda

The notion that Liberals and NDP are fundamentally terrible with government finances is largely a political trope propagated by Conservatives. This stereotype lacks factual basis. It is essential to examine the evidence to understand the true fiscal performance of these parties.

Federal Fiscal Records

Liberal Performance: The last Canadian government to balance the Federal budget within the last 60 years was a Liberal one. This significant achievement contrasts sharply with the historical performance of other parties.

Since 1981, Conservative governments have had higher average deficits and larger increase in debt compared to Liberal governments.

NDP Performance: The NDP has never formed a Federal government but has held office in some provinces. At the Federal level, Conservative governments have had worse fiscal records since 1981. At both the Federal and provincial levels, including the NDP, there have been 158 years of Conservative government, 119 years of Liberal government, and 55 years of NDP government.

NDP Fiscal Responsibility: NDP governments have balanced their budgets 40% of the time compared to 33% for Conservatives and 23% for Liberals. This demonstrates the NDP's commitment to fiscal balance.

Economic Indicators

Spending: NDP governments have actually averaged lower spending as a share of their economies (21.6%) compared to Liberals (24.6%) and Conservatives (22.2%).

Tax Revenues: NDP governments have revenues as a share of their economies averaging 21%, similar to Conservatives and lower than the Liberal average of 23.4%.

Economic Outcomes: Under NDP governments, unemployment rates tend to be lower, wage growth is generally better, and corporate profits show stronger performance.

Historical Context

The tradition of fiscal responsibility within the NDP dates back much further than the 1981 timeframe. Tommy Douglas, the iconic Canadian politician, served as Premier of Saskatchewan for 17 years from 1944 to 1961. During this entire period, he never ran a deficit and committed 10% of provincial revenue to paying down provincial government debt.

Conclusion

In conclusion, the premise that the Liberal and NDP are inherently poor with government finances is false and unsupported by facts. The evidence clearly indicates that the NDP is generally the most fiscally responsible party in the country, with a tradition of fiscal prudence that spans decades. Contrary to the prevalent belief, the Conservative parties have had the worst fiscal records in the past 40 years.