Initially written in 2008, just as the global financial crisis detonated, this commentary looks back at the federal government’s Throne Speech an optimistic, vague, and unintentionally comedic set of promises delivered right before Canada plunged into recession. Many commitments in the speech aged poorly, and revisiting them now feels eerily similar to reading political messaging during the COVID-era downturn.
I’m sorry I could not resist the picture, since every time I think of the Throne Speech my mind naturally moves to the water closet.
The Speech From the Throne
You can find the complete speech on this link, have a read it’s a lot of fun to read something that implies so much and says so very little.
- A Fiscal statement is coming next week from Jim Flaherty (mini-budget? budget? whatever).
- We are going to try not to run a deficit, but we make no promises.
- Support of workers in transition. Does that mean they are going to give me an athletic supporter, money or training? Support is a generic term; training is implied, but not sure.
- Quoted Warren Buffett, who quoted Wayne Gretzky, who said we should skate to where the puck is going to be, not to where it has been. , commenting about how we need a Dynamic economy. I always liked Yogi Berra’s “Hit ’em where they ain’t..” as a colloquialism.
- More effective government, that’s kind of like promising to eat right, words are interesting, actions are the telling part of it.
- One very interesting statement about Electric Power generation:
“Our Government will set an objective that 90 percent of Canada’s electricity needs be provided by non-emitting sources such as hydro, nuclear, clean coal or wind power by 2020. “
Interesting target to have, given a lot is already Hydro and Nuclear how close are we to that number? - Improving the UCCB, no objective statement what that improvement might be, but I like that idea.
- Lots of motherhood statements about funding the military and the police to keep us all safe (not bad things, just fairly standard stuff).
- “May divine providence guide us in our deliberations.” Really not sure what that is supposed to mean, but it reads well, that is for sure.
I guess we shall wait until next week to hear what Mr. Flaherty has to say about programs, taxes, expenditures and the like. I smell a deficit coming, but we shall have to wait and see.
What actually happened after the 2008 Speech?
- https://www150.statcan.gc.ca/n1/pub/11-010-x/2009003/part-partie1-eng.htm
- 2008-2009 budgetary commentary
(Spoiler: the deficit was enormous, the timelines were fantasy, and the government pivoted faster than a hockey player on fresh ice.)
2008 Throne Speech Redux
The 2008 Throne Speech is an excellent reminder of how governments often communicate during a crisis: vaguely, poetically, and with just enough feel-good language to keep the public from running to the banks. It’s political aromatherapy.
It also shows how governments often announce sweeping goals with no actual roadmap. The 90% non-emitting power target was ambitious, but in hindsight, it feels more like a wish than a plan. We see a lot of that today, too: net-zero targets, housing affordability promises, “supporting workers” without defining the support.
For personal finance nerds like us, Throne Speeches are a reminder that government policy can shift quickly. You can’t build your retirement plan on political promises. Build it on things you actually control: spending, saving, investing, and not assuming Ottawa will swoop in and solve everything.
