Budget 2009 a Report Card

Here is make report card and reasoning behind the assigned grades for the Flarhrety Budget.

1.5 Billion for retraining for people who don't qualify for EI. A

Any investment in human capital and skills upgrading has an immediate multiplier effect plus it improves Canada's future competitiveness. This spending does not lead to a size increase in the civil service.

12 Billion for Infrastructure Improvements. B+

Infrastructure improvements address future competitiveness plus they improve the quality of life of all Canadians. There is a significant time lag between the announcement of a project, and the effects of the stimulus being noticed in the real economy. There is a risk that the stimulus can be applied at a later point in time when stimulus is unnecessary thus contributing to inflationary pressure.

100% Write off year of acquisition computer hardware. A+

Have you ever been held up in a lineup because of a bottleneck that slowed down the speed of a computer network?

$1,350 maximum tax credit for residential renovations. A

This one gets maximum marks for creativity. At a low administrative cost, the government is able to sprinkle stimulus over the entire country. Like the chocolate sprinkles that the dutch children got to eat on their toast. It gives a reason for any homeowner that was considering upgrades for energy efficiency, geriatric fittings, etc and soon. An added advantage is that it provides Her Majesty with an expanded list of names of people who provide renovation services for money. This has a lasting impact in that it brings a significant portion of the underground economy within range of the taxman.

Overall, the Harper Government has earned a "Stay of Execution".