CALGARY—Sound fiscal management by government, including less but better focused government spending, balanced budgets, and declining debt set the foundation for improvements in living standards as evidenced by the dramatic differences between both during the Chrétien and Trudeau eras, finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“If the goal is to improve the living standards and general prosperity of Canadians, the Carney government should follow a different fiscal path than the Trudeau government, and emulate the Chrétien government by lowering government spending, balancing the budget, and reducing government debt,” said Jake Fuss, director of fiscal studies at the Fraser Institute and co-author of the study.

Comparing the Fiscal and Economic Performance of the Chrétien, Harper, and Trudeau Governments compares government spending on programs, budgetary balances (i.e. surplus/deficits) and debt accumulation recorded by the past federal governments of Jean Chrétien, Stephen Harper, and Justin Trudeau, and contrasts the differing fiscal records with general economic performance.

Chretien’s fiscal record was one of reduced government spending, balanced budgets, and declining government debt, whereas Trudeau oversaw the highest levels of government spending amongst the three governments, largest deficits (i.e. annual borrowing), and highest level of debt accumulation.

Critically, Chrétien recorded the strongest economic performance of the three in terms of measuring broad increases in the standard of living for Canadians while Trudeau recorded the weakest. GDP per person (a broad measure of living standards) increased 26.5 per cent during the Chrétien era versus just 3.4 per cent during the Trudeau government.

“It’s clear from the Chrétien years that lower levels of government spending, balanced budgets, and declining government debt are critical foundations for stronger economic performance in Canada’s future,” Grady Munro, co-author and senior policy analyst at the Fraser Institute said.

Fraser Institute——Bio and Archives

The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of 86 think-tanks. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute’s independence, it does not accept grants from governments or contracts for research. Visit fraserinstitute.org.

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