We are losing the war of ideas

Last Friday I wrote a post that argued that the Conservative Party has damaged the conservative movement when it comes to the debate between fiscal restraint and “stimulus” spending. By advocating for deficit spending in the 2009/2010 budget and then claiming that this budget was fundamental in saving the economy, the Conservatives have left themselves no room (or at the most a very little bit of room) to argue any other position when the next recession hits. Why not more stimulus spending if it worked so well last time (although it didn’t)? I concluded by saying that Keynesian economics now dominates the fiscal policy debate in Canada because of the actions of the Conservative Party.



Evidence has come out today that the damage has been done not just among policy wonks but the general population as well. A survey conducted by Abacus Data showed that most people would support further “stimulus” spending in the event of a recession.

The federal government has promised to balance the federal budget by 2015 without raising taxes or cutting transfers to persons, including those for seniors, children and the unemployed, or cutting transfers to other levels of government that support health care and other social programs.



Which of the following statements, if either, come closest to your view? [rotate statements]



The federal government should continue with its plan to reduce the federal deficit even if the economy enters another recession: 33%



The federal government should reconsider its deficit reduction plans and focus instead on job creation and stimulating the economy if the economy enters another recession. 58%



Neither: 11%

I had never heard of Abacus Data before but I lack the technical knowledge to judge the methodology and so I will give the benefit of the doubt and assume that this survey is reasonably accurate. You can see all the details here.



I’m not surprised that the majority of people would be supportive of something where there is no strong national voice arguing against it. Organizations such as the Fraser Institute and the Canadian Taxpayers Federation are the only ones speaking out against deficit spending in Canada. But the Conservative Party has a far greater reach and pull than either of these organizations. Without the Conservative Party to make the case the debate has become entirely one sided with most of the population.



Conservatives, libertarians, or whatever…we are losing the war of ideas on this issue.