It had seemed that the Liberal Democrats recent approach of differentiation from its dominant Conservative coalition partner on some policies, while sticking to
the broad government austerity programme — reconciling the «unity / distinctiveness» dilemma — would reap some reward with voters.
If we compare operating spending by municipalities to GDP, which is a
broad measure of ability to pay, it remains within historical averages of close to 3 % of GDP.  In 2012, operating spending by all municipalities in Canada amounted to just 3.1 % of GDP, the same that it was twenty years ago, and down from the 3.3 % reached in 2009 during the depths of the recession.  This ratio was higher during the recession because GDP had dropped and
governments sensibly embarked on stimulus spending to prevent a depression. This was before their misguided adventures in
austerity (which presumably the CFIB supports, but have caused devastation to small businesses in countries elsewhere).
We believe by offering a progressive economic alternative to
austerity, Labour can best reach out to a
broad coalition of voters whose living standards have declined under this Coalition
government.