You may have heard it said that we have nothing to fear but fear itself.

The widespread economic panic perpetrated by opposition parties and the media only serves to make the situation worse as people put the brakes on spending and investing. The panic feeds on itself when Canadians choose to alter their consuming habits because of what they read in newspaper headlines. That sudden loss of cash flow leads to layoffs, and so the prophecy becomes self-fulfilling.

Are Canadians becoming their own worst enemies as a recession threatens to spread throughout the international economy? We have been through downturns before, and we’ll recover from this one, too.
The federal government has been criticized for suddenly being faced with a deficit situation. The surplus that the previous Liberal government had was reduced when our government took action to leave that tax money in the pockets of Canadians. Long before the international banking system was hit hard, however, our government prepared for the global economic turmoil.

We went into this era of financial uncertainty with the best fiscal record in the G7. We made strategic investments in key priority areas like infrastructure, education and training, and science and technology. Our budget is balanced. Our debt is low and getting lower. Taxes continue to come down. This is not a time for self-congratulations, but it is an established fact and recognized around the world.

The measures we have taken to assist Canadians are permanent, and they stimulate the economy. We have a strategy to deliver benefits today and tomorrow, whether times are good or bad. This is why our government took the measures we did. We had foresight, and we understood the benefits that our initiatives would deliver.

We reduced the federal debt by more than $37 billion to give future generations the freedom they deserve. Previous financial policies would have forced our children and grandchildren to pay for our excess spending. We encouraged investment by reducing federal taxes by over $200 billion and brought Canadian corporate taxes to the lowest level in the G7. When individuals and businesses are allowed to keep and use their own cash instead of packing it off to Ottawa, good things happen.

Should we have kept your taxes as high as they were? This government will not apologize for doing what we said we would do. We will not apologize for reducing the tax burden on Canadians. That kind of second-guessing, backward-looking approach compromises the strengths we have built.

Financial security is more than statistics – it is about taking care of people. We intend to spend wisely on the things that will bring a direct and lasting benefit to Canadians. We will keep our sights set on strengthening our economy by protecting jobs, enabling Canadians to save and businesses to thrive, and creating a better future for our children.

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The audio version of Garry's December 1, 2008 op-ed column can be heard by clicking here