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Author Topic: Show us the money, Finance Department!
Michelle
Moderator
Babbler # 560

posted 08 November 2003 11:53 PM      Profile for Michelle   Author's Homepage     Send New Private Message      Edit/Delete Post
Canada can afford to spend: Canadian Centre for Policy Alternatives

quote:
Consider this the next time the feds say the cookie jar is empty — that Canada can't afford new spending. For six years running, the Department of Finance has vastly under-projected the size of the budget surplus. Consistently more accurate have been the calculations of the Alternative Federal Budget project. And the latest AFB forecast shows a federal surplus of $6.6-billion for 2003-04, rising to $20.4-billion by 2006-7.

From: I've got a fever, and the only prescription is more cowbell. | Registered: May 2001  |  IP: Logged
Michelle
Moderator
Babbler # 560

posted 08 November 2003 11:57 PM      Profile for Michelle   Author's Homepage     Send New Private Message      Edit/Delete Post
Federal Budgeting - Soviet Style

quote:
In the former Soviet Union, each company or factory was assigned an output quota under the central economic plan. For example, a tractor factory in Minsk might be instructed to produce and deliver 100,000 tractors per year. Managers who met or exceeded their quotas received extra bonuses or privileges - sort of like Soviet-era stock options.

Now, Soviet factory managers were not stupid people. They soon learned that by low-balling their true production capacities, they made it easy to exceed the official quota and hence pocket a juicy bonus. This was good for the managers, but bad for the system: the quotas bore increasingly little relationship to the true productive capacity of Soviet firms.

Soviet central planning is a thing of the past, of course. But this Soviet-style charade of phony quotas, and phony overperformance, lives on in a most unlikely venue: Canada's Ministry of Finance.


By Jim Stanford, Economist, Canadian Auto Workers


From: I've got a fever, and the only prescription is more cowbell. | Registered: May 2001  |  IP: Logged

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