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The #NDP should vote against the budget, not abstain.
They should vote against it mainly onnthe basis that it requires balanced "operational spending", and only allows deficits for "capital spending".
Operational spending includes all program spending to individuals like CPP/OAS, EI, healthcare.
Capital spending excludes all spending to individuals.
That makes it OK to create money to give to large private capital firms, but forbids creating money to spend on healthcare.
@johnefrancis @chu I hope they vote against it, trigger an election, and I won't make the mistake to not vote for them again next time 馃А
capex vs opex concept doesn't make any sense for the federal govt, since the difference between them is tax treatment, which is meaningless for the federal govt.
Another difference is how they can be financed. Private entities can borrow for low risk, long term capex at fairly low rates, using the purchased long life thing as the collateral.
Also meaningless for the federal govt, which doesn't borrow money, as it is the creator of money.
long term investments with low risk returns are considered capex. Short term, <1y spending is considered opex, not particularly tied to an expected return.
So why is healthcare considered opex in Carney's new accounting scheme?
Isn't keeping Canadians alive and healthy the ultimate long term investment? Corpses in Canadian graveyards don't generate any tax revenue.
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