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The fundamental premise of the budget introduced by Mr. Crosbie in December, Im, was that government spending must he brought under control and the le deral deficit reduced. I en- dorse that objective. Even though it may mean some short term difficulties for Canadians, I believe that it will alliance long term sta- bility for us all. The Pro. gressive Conservative go- vernment is the first to make economic projections and prepare departments of governmait plans five years in advance. We are dedicat- ed to putting Canada's house in order and to end credit card living». The Budget is an indication of the direc- Inflation" earmark at- tributed to any single sour- ce, but generally the causes are blamed on excessive de- mand and/or rising costs, and solutions are proposed accordingly. . Secondly, we need' to re- member that in some ways deficits and borrowing by Jhe federal government mean the same as in our household and businesses. -They must be Theasured against our assets and the activity. As liormwing helps us to buy homes and expand The Bank of Canada and the Clark government see the problem primarily in ex- cessive demand, hence higher interest rates. I be- lieve they are in error, and those high interest costs are themselves a cause of infla- tion, as are the proposed in- creases lit oil and gasoline m h the an! In a ark- ot. tour question .4 m thick: to be eatrgiqd terttte Quickie in with tbr a: February can"; also We are happy to be able to print tttig muslin] In hopes that it will Quinlan voters and has“: their mamas ot Illa-e the am dictates “and on major First of all, let us place the tacit and the national debt burden in perspective. As a traction of the national income, the net indebted- ness of the federal govern- ment tell from gr percent in 1968 to 15.6 percent in 1977. Frank Epp - Liberal El,, Et? TION 'trt) lswe demand, hence - The attack on inflation her interest rates. I be- must involve all the cam. re they are in error, and but especially those factors se high interest costs are that increase the costs of mselves a cause of infla- goods' and services. begin- t, as are the Imposed m- ning with the" lowering of in- asa in oil and gasoline terest rates. Walter McLean - C servative tion our party is committed to: confidence and invest- ment inthe private sector; development in Eastern Canada; energy self-suf- fieieney; cutting the cash deficit in half by 1984; in- creasing job opportunities; assisting Canadians from all walks of life - farmers, n- shermen and small busin- essmen. At this moment, you and I are beqtteatttintt our mildren and grandchil- drm}; Gross Natimal Debt of ' billion; $1,000.00 for every man, woman and child in Canada; giver $100,000,000,000 - one zero for every year of Trudeau governmt. Since ms. the Federal Btattgetagy Deficit has here-sod from '1 mil- iiorttttttt billionandttiebi- prhes. The higher cost tit imports, price and wage generally, excessive profits and higher government taxes all are factors con- tributing to inflation. The present government has fueled most of these factors, and, not surprisingly. the budget forecast higher irttu- Finally. what one does at a particular time depends upon the needs. As the econ- omy stands BOW, I favour a modest and orderly roll- back, leaving room for sti- mulation if the predicted re- cession should actually threaten us. our businesses so federal do: ficits can. under certain cir- cumstances, contribute to the overall health of the economy. " a mortgage is not wasted money so a fe- deral investment in job creation and other pro- grams is not wasted my. Canadian cum of Com- merce. undue Chronicle acknowledges the help of the Waterloo Chamber of Commerce In obtaining the ans-en: We will print ttro ques- tions and response: "every week until election week. MWh-vobun My Mil-MP! the this ream. the deficit will widen. The Conaerwtives View the notion of an ac- counting budget balance as .a sacred cow. But each a ' narrow worahip reneets a lack of understanding of economic processes, ot how it is that the modem Cana- dian economy operates and how it should be managed. Their fixation with an ac- counting bounce and their lack of understanding of eutectic menu. in fact. 1'here are no simple solu- tions to ipsfiattott.dt is partly caused by external forces. Ind-yea: takesteps inter- nally to hold it down. High interest' rates are a bitter medicine: brotsght-mt partly by the elevcn-year record of Trudeau's government - a government out-ot-control - and partly by our dependa- ce on the rampant increase in oil prices charged” by other countries. One solu- tion is to reduce government spending and to adopt “Sun- set Laws" which phase out programmes which have outlived their usefulness. We also accept the principle that government cannot go on printing money. I believe that increased productivity in industry and the private sector generally will help. Programmes to encourage technical innovation, secon- The concern with the size of the federal deficit and whether it should be in: creased, decreased or main- tained is, and I say it in a kindly fashion. a misplaced emphasis. Rather, the real point that Canadians should be looking at is the proper use pf the federal budget " an instrument of policy, as a tool by which defined goals of full employment, price stability, a re-structuring of the balance of payments and generally the expansion of production. employment and profitable operations of independent Canadian bu- siness is obtained. “8] changes in rules are introduced or proposed (as was done in the aborted Con- servative budget of De- cember last) that will con- tract the economy and force unemployment to higher levels, tax revenues will tall on the income side and, for heral- had projected a tttHur 'ttl “no: for W. The was” Govern- mt Budget clearly to" a reduction h the detteit of nearly 11 billion, bringing our“ mm down b 810.4 billion “to. eroding important social programs. Together, the Liberal and New Democratic Parties cost Canada over $3 billion ea In external forces. in world markets will "pettrrtakeat-inter- 'tm1tgtt-tmreemsttmrand , to hold it down. Hill! combat mantion. The Clark rest' rates are a bitter guanine" was the filst to icine’, brow-on partly appoint a Minister of State le clam-year record of for International Trade; re- leau's government - a 'cently Mr. Wilson was in our ‘mment opt-ot-eontrol - community and pointed out partly by our dependen- that the Duty Remission n the rampant increase Programme will allow local " prices charged” by companies (such " Electro- r countries. One solu- home) to make Canadian in- is to reduce government dutry more competitive on ding and to adopt “Slln- the world market. This will an" which phase out also ensure jobs for people rammes which have within the Riding. The aim ved their usefulness. of Energy self-sufficiency lso accept the principle by the 1990’s will reduce in- government cannot go nation by reducing our de- inting money. I believe pmdency on the high price increased productivity of imported oil. Bringing dustry and the private down interest rates is a or generally will help. commitment of the Clark rammes to encourage government over a four- lical innovation. secon- year period. Bob Needham - Generally, Canadians should be hard-nosed about the quality of' economic management which they get from their elected represen- tatives. Canadians should look to NDP policies for ex- pansion and creation of pro- fitable employment for Can- adian workers and Canadian business. The budget should be used to intemalise econo- mic processes so that all Canadians benefit. it the ‘comtry is put back to work. if resource revenues accrue to Canadians and, in as- sociation. " lull employ- ment “aggressively pur- sued. the budgetary deficit will look after itself; it will bea burden thatnoonewill even notice simply because full employment implies a continuous stream of in- come receipts and tax re- values. Liberal and Conser- vative policies of contrac- tion will actually widen the deficit and make me an- necessarlly hard for Cana- dians in all walks of lite. Then is a erUig 'hlt't mm: in Cana that the NORM: solve. will mean that the budget deficit will widen; the Con- servatives will end up shoot: ing their own sacred cow. Ag repooted on CBC-TV, a student at York University hit the nail right on the head when he said that Joe Clark should have gone to school longer. l dollars in menu: In " teating the Clark govern- ment with a motion that pointed Ipoqillcally to an "itmqttmrittle" Budget. I an prepared to upper-t a Btretttet which .1110" Can- dians to pay their bill: now - to prevent my son: from being encumbered by debt when they begin their work- ing lives. _-- dary manufacturing. and ‘the sale of Canadian goods Marxist candidate slams Soviets Reductions in Govern. ment #eatdhgt There is no necessary relationship be- tween Government spending and inflation. In fact nduc~ tions in Government spend- ing might increase infla- tion! This can happen be cause large corporations which ‘suffer sales declines as a result of the contraction in government spending can still boost prices so as to restore margins. The key is By Dave Dineen Waterloo Riding Marxist- Leninist party of Canada candidate Brian Erdman, striving to separate hip party in the current election campaign from the com- htnation is a process of continuous increase in costs of production. incomes and prices. It is a process to which various groups con- tribute activelywhile some must sit passively by. on- protected by power or posi~ tion. But because of this, all groups must share joint re- sponsibility for its solution. The ittfhttiott that we see and. experience daily is in- tiatitm in the prices of goods and services we buy, with those on fixed incomes sut- fering most. Policies to con- trol inflation must start at this level so as to be im- mediately effective and to provide a convincing de- monstration, obvious to all, that standards of living are. going to be maintained and, in fact, that they will rise over time. Coming at infla- tionirorn the, rice . will, pressure for increases in in- comes. Complementing the direct control of prices, in- creases in productivity should and must be used to support general increases in the standard of living. Prin- ciples of equity and digtribu- tion must be designed so that all Canadians benefit from productivity increase. IRIAN EHDMAN... This comment on the to- tiatitnt pm la written on the ammo that Cana- ttiam are '/l',t,tt,"g,tf, in continuing in ' and are willing to work and act co- operatively lot its solution In a stung federal state. It is essential that this point be clearly understood. The ap- proach of social democrats in the NDP is that oi-to- operative action by and amongst all groups in so- ciety, Watch» Chronicle, Wound-y, WV 23. mo . Though Mr. Conway's rhe- toric dominated the session. the Waterloo communist stated the Soviets should be driven from Afghanistan and "that all inttterialiats, socialilmperiallata and reactionarlea mould be dri- ven from every corner of the globe where they are Mr. Erdman, who was the Marxist-Lemma candidate in the May 1079 election, held a joint press conferen- ce Jan, 18 with Marxist- Lenlnm Kitchener Riding ugdiilnte Jeff Conway. munilm practiced in the USSR, lashed out last week at the Soviet "social-im- peruiists". WW w...." "I“. - Interest Rates: - Higher interest rates are an affront to logic and com- mon sense in an unemployed economy. High interest rates have adversely affect- ed small business in this Riding and throughout Can- ada. When the cost of bor- rowing is high, less borrow- ing is done, less money eir- culates and business suffers. But chrrently there is no shortage of money to laid. As the President of one of Canada 's chartered hanks said this past week, they have plenty of money to lend. In this sense. higher interest rate policies of Li- beral-Conservative govern- ments also mtribute to wi- dating the government defi- cit as less taxable income is generated! Solution to the. inflation problem cannot be assured by slavish devotion to either tax reductions or tax in- creases. Corporations can pass on increased taxes by increasing prices, while there is no necessity to re- duce prices when corporate taxes are reduced. tht the personal income side: in- creases in personal income taxes lower disposable in- come and set up pressures for more rapid rates of in- creases in money wages and salary payments, which in turn are'passed along in higher prices. Middle-in- come Canadians already shoulder the burden of taxa- tion and they simply will not 'tanarJ.9.r inmsiéieyr to recognise that prices are summed; they on be increased even,wlien go- vernment spending is cut and even when unemploy- nht is at hid: levels and is being forced to higher levels by e0rttmetio'tary LibCon grtvemrmnt. policies. Por. tunately, administered prices can be administered in the [some interest; price stability is possible and can be achieved at the same ttme-that full employment policies are aggressively 1'-r and Corporate (Continue on up I)