Re: “New budget watching says ‘deficit will absolutely be higher’ than forecast, feds have no clear fiscal anchors,” (The Hill Times, Sept. 17).

Federal government expenditures should be evaluated not by any arbitrary “fiscal anchor,” but by their effect on the real economy, in particular the rate of unemployment.

Today’s economic punditry ignore the high cost of keeping inactive 1.6 million Canadians who are not contributing to economic production, and whose skill levels, mental health, and family life deteriorate over time, leading to expensive and intractable social problems. 

The economy can be likened to a cup. While we want to avoid overfilling and causing inflation, neither should we under-fill it, tolerating unnecessary recession and insufficient job creation.

Statistical anchors are ideological in nature, designed to restrain government action, and have no actual economic justification. The federal government wholly owns the Bank of Canada, and can spend any appropriate amount required. Evaluate the budget by whether it enables all employable Canadians to earn income, contribute productively to society, and share the benefits.

Larry Kazdan
Vancouver, B.C.