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Canadas Debt

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    Canadas Debt

    When debt is talked about its usually divided on a per capita basis such as every man woman and child owes $X. But that's not how debt works in our country. The equalization is skewed east but so is the debt.

    “A substantial federal deficit during a period of economic expansion is bad news for all Canadians—but it’s especially concerning in Ontario, which is also saddled with a whopping $346 billion provincial debt.
    That sounds bad enough. Until you consider that Ontarians are also on the hook for approximately 40 per cent of the federal government’s net debt, which comes to about another $280 billion. Add these up, and you find that Ontarians are responsible for an aggregate net debt load of approximately $625 billion.”


    By estimates AB and SK are on track to have about $110B in debt sending $15B a year in equalization probably rising to $20B. If those two provinces separated and took there share of the federal debt with them, we could likely pay that off in a reasonable timeframe with our equalization money.

    There is no chance that the East will ever pay off their debt. It can only be serviced now on the backs of the west. So would we better off separating, you bet we would. There is nothing eastern Canada does for us. Might as well be another country.

    https://calgaryherald.com/news/politics/braid-worried-about-alberta-debt-pity-poor-ontario Worried about Alberta debt? Pity poor Ontario

    #2
    It's like an abusive marriage, it takes courage to runaway to safety.

    Comment


      #3
      hopefully the libtards don't punt numbnuts before the election , and he wins
      then the courage will be there

      Comment


        #4
        Unfortunately, it is not short of a depression that will drive home the true cost of debt to the next generation.

        Spending will not be seen as an easy way of gaining votes. Big wake-up call ahead.

        Comment


          #5
          The US debt to GDP ratio is currently higher than Canada's and projected to increase. Canada's federal debt to GDP is lower than the USA and expected to decrease.

          Farmers in Canada currently have around $100 billion in debt. https://www.grainews.ca/2018/10/29/farm-debt-in-western-canada/

          Farmers in Canada collectively have more debt than many basket case countries.

          Not only is Ontario in trouble because of too much debt, farmers are in a vulnerable position should revenues and asset values start to fall.
          Last edited by chuckChuck; Jul 10, 2019, 06:45.

          Comment


            #6
            Originally posted by errolanderson View Post
            Unfortunately, it is not short of a depression that will drive home the true cost of debt to the next generation.

            Spending will not be seen as an easy way of gaining votes. Big wake-up call ahead.
            Tax cuts are also a source of the problem. You can't keep buying votes with unsustainable tax cuts. The reason we are in this position is because of a push to reduce taxes and increases in spending. Its not just the spending side that is increasing debt.

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