2015 Canadian Federal Budget Includes Families, Savers & Seniors

As a Blogger that loves to follow and decipher Canadian financial news, I received the following press release today from the newest addition to the Dominion Lending Centres Team, Dr. Sherry Cooper.  

It is safe to say that am I excited Dr. Cooper has joined us as she is one well educated, accurate and highly respected lady!  

Being that I could not have written this better myself, I decided to share.  Enjoy!

Vancouver, BC - Responding to today’s federal budget announcement, Dr. Sherry Cooper applauds the deficit reducing components of the 2015 Budget, stating that Ottawa’s plan offers a balance between fiscal restraint and targeted spending in key areas.

The budget forecasts a surplus of $1.4 billion this fiscal year, the first surplus in seven years. At the height of the global economic and financial crisis, the deficit was as high as $55.6 billion.

“This is a play-it-safe budget- no big new ideas, but great success in deficit reduction, tax cuts and smaller government,” says Dr. Cooper, Chief Economist for Dominion Lending Centres. “The measures to help families, savers and seniors are worthwhile and affordable.” Budget 2015 continues to shrink the role of government in the Canadian economy, continuing to cut taxes, a trend since the Conservatives took power in 2006. The Harper government is enshrining into law this government shrinkage with balanced budget legislation, allowing no more deficits unless the economy moves into recession, or in the case of extraordinary circumstances. Dr. Cooper stated that the government must be careful around balanced budget legislation. “Balanced budget legislation reduces the flexibility of government to conduct proactive counter-cyclical fiscal policy in a timely manner.” This is particularly relevant in a world where central banks have little room to counteract tight fiscal austerity. Hamstringing government policy in this environment seems untimely, at best. In addition, boomers will benefit from the doubling of the maximum contribution to Tax Free Savings Accounts (TFSAs) to $10,000. According to Dr. Cooper, this is a very good idea given that most boomers haven’t saved enough for retirement and younger people would benefit from the huge compounding effects of tax-free returns. Dr. Cooper added: The measures introduced to enhance personal savings through the TFSAs and RRIFs will help, but the current low interest rates force savers to take more risk to enhance returns.

About Dr. Sherry Cooper: Dr. Sherry Cooper took the position of Chief Economist, for Dominion Lending Centres in early 2015. Prior to joining DLC, Dr. Cooper was the Chief Economist with one of Canada’s largest financial institutions and is well versed in the mortgage sector. Dr. Cooper has an M.A. and Ph.D. in Economics from the University of Pittsburgh. She began her career at the United States Federal Reserve Board in Washington, D.C. where she worked very closely with then-Chairman, Paul Volcker, a relationship she maintains today. After five years at the Federal Reserve, she joined the Federal National Mortgage Association as Director of Financial Economics.

Takes a Village...

We all come from somewhere and today my Dad has taken my two kids (12 and 14 year old) to his hometown of Trail, BC.  He goes back every year (sometimes twice a year), to see his old friends and their senior parents to "chew the fat".

I used to think it was strange to do this, but as I get older I think it is nice, kind and downright respectful to consider the people who helped raise you.  Really...let's face it, it does "take a village to raise a child".

As a kid I was raised in East Vancouver and boy was it a melting pot of people.  In my neighborhood there were 8 different nationalities on one block!  I used to joke that it was like eating at the food fair at the mall everyday going to a friend's house, but really it was.

As kids, we all got along and played together daily, and we spent time at each others homes, listening to different languages and participating in various customs.  It was needless to say, educational and amazing.  I know the person I am today is a direct result of the people that I was raised around, and I really am glad they were all there.

You see, in my world in the  70's and 80's you would have smelled Indian food, heard Chinese music, saw Greek flags and spoke English.  I believe that because of this I am tolerant, interested, and worldly because of my childhood surroundings...and I have many people to thank for this.

So now, as an adult, living with my own family and friends, I would encourage anyone to re-visit what made you into the human being you are.  I bet it was not just your parents, but your neighbors, teachers and friends parent's too!

Thank you to the following families (in no particular order): Wada's, Duncan/Wersta's, Chu's, Kardakaris', Sahota', Bauer's, Naidu's, Nixon's, McRae's, Tomei's, De'Arlieaveria's, Dosanj's...the list is endless.

Because of all of you I can cook a mean curry dish, say "poli-kala" sing a Chinese counting song, bowl, play softball, celebrate Christmas, Dhawali, Easter, etc., and show my kids the beauty of all of it in our Canadian house.   

Liz XO