$508 billion. That, my fiscally irresponsible previous generation, is the weight of what has been left to this generation, that is Canada’s debt. Now entering into another era of deficit financing I decided it would be important to have a quick look at it. Now I am not saying that a short term deficit is the worst thing we can do, especially considering the circumstances. I am saying that the current governments spending decisions are what destroyed the flexibility in the Federal surplus that could have allowed us the opportunity to combat this crisis without issuing bonds or turning into the US. This number may seem small compared to the trillions of dollars being allocated to bailout packages in other countries, but do not forget that this is not a large country. The public debt was estimated at 64.2% of our GDP last year (https://www.cia.gov/library/publications/the-world-factbook/print/ca.html) and will only increase with a deficit and shrinking economy. National debt is not the worst thing in the world, the same way mortgages and credit cards are not the worst thing, but not paying down the debt and adding to it, well that is where it starts to get bad.
How did the current government get us into this problem? They started off strong by cutting the GST (they are in fact considering the introduction of a third cut as part of a stimulus package (http://money.canoe.ca/News/Economy/2008/12/10/7700926-cp.html)- I personally have trouble believing that a 1% cut in taxes will motivate sales, considering people are fearful of losing their jobs). Then they greatly increased military spending (currently $20 billion annually – remember that we are paying to send soldiers to Afghanistan). These are good starters in lost revenue and crazy spending, but are just a sample of the information available to those of you who voted Conservative in the last election. So imagine we did still have a large budget surplus. Would we be able to finance a stimulus package, which economists recommend should be in the area of $16 billion, without entering into a deficit again? Would we be able to pursue green stimulus packages (i.e. high speed rail construction, wind mill construction, how about a machine that harnesses energy from waves which does exist) that not only invest in sustainable developments but are also proven to keep more of the money within the country than alternative stimulus packages creating high paying jobs in manufacturing, engineering, science, etc...)?
Oh the options that have been taken away from us by a party designed to motivate people utilizing cheep (ok extremely expensive) gimmicks. I am not trying to chastise everyone who voted Conservative in the last election, I am not saying it is your fault that Canada is in this terrible situation, I am saying that perhaps more people should pay more attention and stop being controlled by attack ads and political deception. Sure I love saving a few cents at Tim Horton’s on my steeped tea and sure I like thinking that sending people I know to Afghanistan to fight with people I am supposed to fear is keeping me safe. Sure I like to think that everyone who voted Conservative cares about the future of Canada and was only deceived into pawning the problems of the nation onto the guiltless next generation (especially me since I have no interest in paying down a debt created by the current government to solve problems it is partially at fault for creating – cough, Flaherty: “Ontario is the last place to invest”, cough).
So if you voted Conservative in the last election or ever consider voting that way in the future, I recommend you think long and hard about your legacy. Do you want to be viewed with admiration for standing up against insurmountable odds and endearing or do you want to be viewed as a generation that was fooled by Stephen Harper, a man who has done nothing deceive the nation, taking advantage of the ignorance (how many people understand the political system and the economic impact of a recession) and intolerance (Dion may not have spoken good English but his economic plan did not call for 6 months of no government during the worst economic crisis facing the generation). You can all make your own decisions, but next time you go to the polls try doing a little bit of research and I do not mean watching Harper’s commercials and quoting them. (“Dion is going to tax everything” – “Dion is out of touch” – “Harper looks like the steady hand we need at the helm, he wears sweater vests and his son is getting to that age where he doesn’t want to spend all his time with dad”.) Come on people get informed and stop embarrassing Canada, even the US was able to elect a leader who supports more than Big Oil and an insatiable quest for power.
C.
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