On wishful budgeting

The key takeaway from Deficit Jim Flaherty's latest work of fiscal mismanagement performance art:

Mr. Flaherty, unlike in his previous budget, hasn’t made allowances for the possibility the consensus (on growth forecasts) could turn out to be too optimistic.

The worst case scenario remains a distinct risk. No one knows how long U.S. consumers – the biggest buyers of Canada’s exports – will build up their savings rather than resume spending. Banks remain extremely cautious, making it difficult for small businesses to get loans. Rich countries are struggling with heavy debt loads that will limit what they can do to boost economic growth in the years ahead.

So less than a year and a half after his government was completely out to lunch first in asserting that a recession was impossible and then in claiming that Canada didn't need any economic stimulus, Deficit Jim is now going even further than ever before in "planning" as if nothing can possibly go wrong. Which can hardly be confidence-inspiring for anybody who's paid attention to the Cons' track record.