Reckless Government Spending

The long-term national debt, and yearly deficits should be a priority concern for Canadians. 

Most Canadians agree that managing the national debt and deficits should be a priority for the government.  The Current Outstanding Public Debt of Canada is approximately: $685,230,000,000.00 CDN.   Interest costs are growing rapidly.   We will soon be spending more on interest costs than we have for essential areas such as HealthCare, Education, and Pensions.   Key investments in our future are at risk.   Higher interest costs could crowd out important public investments that can fuel economic growth — priority areas like education, research and development, and transport and communication infrastructure.   The growing federal debt reduces the amount of private capital for investments, which hurts economic growth and wages.   A nation saddled with debt will have less to invest in its own future.  Rising debt means lower incomes, and fewer economic opportunities for Canadians. 

A good reduction of debt in ratio to what Canada produces (GDP gross domestic product) can lead to increases in national income for workers.   Stagnating wages and growing disparities in income and wealth are very concerning trends, which are a consequence of financial irresponsibility.   The federal government should not allow budget imbalances to harm Canadians, but the Liberals are going in the opposite direction.

Perpetual Liberal deficits yield less flexibility to respond to international crises.  On our current path, we are at greater risk of a fiscal crisis, and high amounts of debt leave policymakers with much less flexibility to deal with unexpected events.   If we face another major financial crash like that of 2007–2010, it will be very difficult to work and earn our way out.

Our unsustainable fiscal path threatens the social safety net and the most vulnerable in our society.  If the government does not have sufficient resources, these essential programs, and those who need them most, will be put in jeopardy.

A solid fiscal outlook provides a foundation for a growing, thriving economy.  Putting our nation on a sustainable fiscal path creates a positive environment for growth, opportunity, and prosperity.  With a strong fiscal foundation, the nation will have increased access to capital, more resources for private and public investments, improved consumer and business confidence, and a stronger safety net.

The good news is that there are solutions.  Get rid of the Liberals and the mental attitude that we can tax and spend our way forward.   The sooner we act responsibly, the easier the path.   It makes sense to get started soon.   We need annual spending cuts along with revenue increases totaling 1.8 % of GDP in order to stabilize the growing debt.  If we wait four more years as the Liberals plan to do, finances could spiral completely out of control.  Like any debt problem, the sooner you start to address it, the easier it is to solve it.

Addressing our national debt, starting with balanced budgets, is an essential part of securing Canada’s economic future.   Economic issues should be at the forefront of the policy conversation in Ottawa and the 2019 election.   There is only one Leader who is prepared to boldly face this challenge with sensible reforms that will put our long-term fiscal trajectory on a sustainable path.   Vote for the Andrew Scheer Conservative Team.