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House Hansard - 105

44th Parl. 1st Sess.
September 29, 2022 10:00AM
Context: House Hansard - 105 - Sep/29/22
Mr. Gabriel Ste-Marie
  • Sep/29/22 5:02:42 p.m.
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Madam Speaker, I thank my colleague for his question, even though it was not asked in French. Perhaps he will try next time. The trickle-down theory, which refers to the notion of creating wealth before distributing it, was popular in the 1970s, 1980s and 1990s. I would say that it was possible to continue embracing the theory up until the 1990s. It was an ideological vision. Since the 1990s, however, this theory has been clearly debunked. Nothing ends up trickling down, so it is not a theory that can be supported. As for the second part of my colleague's question, I will use the example of England, which is really not doing well right now. The Bank of England has adopted a restrictive policy, but the government has adopted an expansionist budgetary policy. Together, these short-sighted policies cancel each other out and result in debt. It is wishful thinking to believe that cutting taxes will significantly stimulate the economy, especially at a time when the economy is overheated and inflation is high. When I taught in CEGEP, we taught the Laffer curve, which espoused this theory and was developed by an American economist. It never worked. It is a myth. Experience has shown that it does not work.
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