Today's discussion:

Canada’s fiscal outlook is not a pretty picture

The federal government should resist any temptation to add to the fiscal framework at a time when debt has ballooned, interest rates have increased, and growth has slowed. The risk is that we are entering into an era where public debt charges outpace revenue growth—a dangerous inflection for debt dynamics.

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Comments (17)

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The Hub Staff

Thank you for participating in Hub Forum. Check out another piece by Theo Argitis on a soft-landing fiscal plan: https://thehub.ca/2023-12-04/theo-argitis-wheres-the-prudence-freeland-bets-big-on-soft-landing-fiscal-plan/

9th January 2024 at 12:16 pm
RJKWells

As we approach the 30th anniversary of a key course correction that shifted us away from the fiscal wall we were careening towards, Canadians will soon find themselves facing the same consequences of borrowing money we don’t have to spend on federal programs that are the domain of the provinces. A series of essays by the Fraser Institute a few years ago serves as an important guide to what we went through during that era of our history:

https://www.fraserinstitute.org/studies/budget-that-changed-canada-essays-on-the-25th-anniversary-of-the-1995-budget

When looking at the current crop of Liberals in power, I am hard-pressed to find anyone among them with the necessary skills to take on the challenges of putting our fiscal house back in order as we did in 1995. They are more preoccupied with hanging onto the levers of power than they are in charting a course that will effectively navigate the nation through the turbulent waters coming our way.

9th January 2024 at 8:50 am
remi van wermeskerken

There should be no bonuses for any government workers or executives unless the budget is balanced. Why on earth would we go borrow money to pay them bonuses?

9th January 2024 at 8:00 am
Kim Morton

Government employees should not be getting bonuses period.

9th January 2024 at 10:17 am
Leonard Waverman

The current government, ie the coalition, only sees the short term. Therefore, fiscal reality and balancing the budget are seen as irrelevant. In fact, realizing that they will likely lose the next election, makes reckless spending and locking in long-term spending programs more possible! A disaster!

9th January 2024 at 10:55 am
Lauraine

Balancing the budget is an old Conservative Mantra. We have grown as a nation in so many ways since dumping Harper.

9th January 2024 at 2:39 pm
Paul Attics

Along with chronic Federal indebtedness, one must layer on the various Provincial and Municipal debt to have a complete government debt picture.

9th January 2024 at 8:21 am
Francis Mark Blaney

Open your eyes people!! Trudeau’s +Trillion dollar spending spree now costs Canadians $68.6 Billion in interest alone, for the year 22/23. We cannot afford anymore of this Liberal govt!! Trudeau has racked up a debt far greater than ALL the previous govts combined. And yet 25 to 30% of the population still believe he’s a viable leader(LMAO) THIS LEVEL OF NATIONAL STUPIDITY AMAZES ME.
##TrudeauMustGo

9th January 2024 at 1:29 pm
Pierre Filisetti

Everyone is complaining and constantly asking for the “government” to do more…who is willing to be content and forgo the “asking”?

9th January 2024 at 10:44 am
Kim Morton

Our excessive debt load has been building since at last pappa trudOWE’s tenure. Somehow, politicians wishing to remain on the gravy train think buying votes with the people’s own money is sound fiscal management. This goes along with the poor fiscal thinking that taking cash off one credit card to pay the minimum payment on another CC gives you more money to spend. Then there is the outright fraud part of their thinking. CPP is NOT government money. It belongs to the people forced to pay into this rather poor ponzi scheme. Taxing pension money is also fraud. It is not income, it was already our money. For the majority of us pensioners, if we had invested the money us and our employers have been forced to let the government handle, our ROE would be about double the piddling amount the government so generously lets us take back. Last year politicians voted themselves a raise that represents nearly what a pensioner is expected to live on to cover the raising cost of living increase largely caused by government incompetence.

9th January 2024 at 10:15 am
Richard Courtemanche

No, it’s not pretty. We have a parasitic government intent on destroying Canadianism. They are incompetent and irresponsible with Trudeau as the favorite mentee of evil Schwab and company. One would think that competent people in this country could at least collectively uproot a most imbecile and dangerous being before it’s too late. But the globalist trend has penetrated our government more deeply than expected! Or, could even a credible party reverse the trend at this point? Tell me we aren’t doomed!

9th January 2024 at 9:56 am
A.Chezzi

With all that is happening globally, it seems Canada is doing pretty well. While debt is never a good thing, there are times when it has to be to keep the country afloat. Where would Canadians be without heavy government intervention during covid. Now, many small businesses find themselves in a precarious position of having to repay the loans or going under. Do we want that to happen? Small business makes up a significant part of the economy. While these small businesses suffer, large corporations are making huge profits. I am sure Con would balk at windfall tax on these companies but it may well be time to do so. The theory of trickle down doesn’t work We have seen that with the huge profits grocery chains are making and there is no relief at the check out. Inequality is rising. The gap between the hourly paid and top CEOs is 264 times higher. This is insane. Is any person worth $3,322 an hour? We need a new tax structure in Canada.

9th January 2024 at 8:36 am
Ian Malcomso

Nice try! You guys have so seriously politically poisoned the well of Canadian good will to get power these past year that this country is badly divided, like it’s neighbour’to the south. Rallying around the flag and celebrating the past aren’t going to cut it. Authoritarian moves to cut fiscal.waste, eliminate debt, get rid of the CBC, curb social spending, and remove public health orders are only, at best, populist politics. You’ might win in 2025 only because a greater number of Canadians are tired of the Liberals,but that doesn’t mean they’ve warming up to the Conservative radical alternatives.

9th January 2024 at 12:15 pm
Michael F

Nary a mention that every economist agrees that inflation is under control and rate reductions could come as early as next quarter. And no mention of the 18 billion Honda is looking at investiing in Canada alongside their hugely successful Aliston plant. But rhe doom and gloom patrol need to keep up the fiction that everything is broken.

9th January 2024 at 9:13 am
Kim Morton

Where did you find even one reputable economist that thinks inflation is under control? What about the 20 or so billion of taxpayer money the current regime has foolishly squandered on EV battery plants? That money would have gone a long way towards fixing the problems our veterans are facing.

9th January 2024 at 10:21 am
Michael F

It’s really not that hard to look up. And do you think the feds cut a $20 billion cheque to Volkswagen? Are you that naive and misinformed?

9th January 2024 at 10:55 am
Ray Howarth

The Trudeau liberals are the absolute worst thing to happen to Canada since confederetion.
My preferred solution:
boot-out the Liberals AND boot-out Quebec!

9th January 2024 at 3:41 pm