Canada’s Federal Debt Will Soon Be out of Control

Commentary, Economy, L. (Tex) Leugner

During the 2015 federal election, the Prime Minister promised that the Liberals would have temporary deficits not exceeding $10 B per year and would return to balanced budgets by 2019. The Canadian voters drank this kool aid.

However things have turned out to be even worse. The 2019 election promises will create deficit spending of $27.4 B in 2020-21, followed by $23.7 B, $21.8 B, and $21 B for the next four years. Canada’s federal debt is growing at the rate of $80 M dollars per day, $3.3 M per hour, $55,000 per minute and cannot be sustained. Now that the Liberals have a minority government, they will remain in power as long as they can with the support of the NDP and the debt will become massive!

Tomorrow’s taxpayers, your grandchildren and great grandchildren will pay for this unnecessary borrowing and spending. Today’s voters including naïve millennials did that to their own generation. The voters of this divided nation should be concerned present policies are piling unnecessary burdens on the next two generations of taxpayers.

Just as Pierre Trudeau’s reign ended, my generation had to pick up the tab for his unconscionable borrowing; now the next generation of taxpayers will bear the heavy lifting to pay the debt of the current Prime Minister. Logic and any knowledge of finances teach us not to spend more than we earn and we must ask the question; why would Canadian voters elect someone prepared to bankrupt the nation? 

A leading think tank in Canada reported: “Canada is a much less attractive place to invest due to the federal government’s introduction of higher taxes, mounting debt and increased regulation. Canadian investments abroad increased 74 percent from 2013 to 2017, while investment from other countries into Canada dropped an embarrassingly 55.1 percent. The World Bank’s “ease of doing business” assessment concluded Canada had dropped from 4th place in 2006 to 22nd place in 2019.” 

These are shocking numbers confirming that present policies are moving this country into an untenable position. With the United Nations sponsored climate plan, more of an income redistribution program than anything, pushed forward by the federal government, combined with the attack on the western energy economy provided  by Bills C-48 and C-69, the areas of the country that could provide their traditional economic boost to the national economy, Alberta and Saskatchewan, remain at the mercy of Laurentian Canada. 

It is no wonder that the cry, “the west wants out,” can be heard across the Prairies.