After reading information about the province of Ontario’s budget I’m left with a few impressions.
One, it’s about jobs, some related to the development of the northern ‘Ring of Fire’ chromite deposits.
Two, ring of fire may be the operative words related to our growing debt because very little was said - by the governing Liberals or hopeful Conservatives and NDPers - about how it will be discharged.
About the record $24.7 billion deficit in this year’s budget the Premier said:
We don’t want to compromise our future by moving to balance the budget too quickly. We don’t want to risk the recovery by, for example, not investing in infrastructure stimulus this year.
But we do want to be mindful of our responsibility to our children and grandchildren to address this deficit. (From this morning’s issue of The London Free Press)
In other words, our government continues to put its trust in investments in a market-based economy (spend, spend) while saying very little about the many dangers future generations will face because of our habit of growing our debt at unprecedented rates.
I say ‘our habit’ because of two things.
First, from 1985 to 2011 our debt will have grown from about $30 billion to $205 billion. So, on average, the government of Ontario grows the debt at the rate of almost $6.7 billion per year.
Second, during those same 26 years the government has only paid down debt 8 of those years. So, the government grows our debt 69% of the time. (Source: The 2009 Ontario Budget)
Though Opposition Leader Hudak slammed the premier for glossing over the record $24.7 billion deficit in the recent Throne Speech and said “there were only 24 words about the crippling debt that is mortgaging the future of our children and grandchildren,” I think more needs to be said about the dangers associated with our habit of growing debt at unprecedented rates.
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What do you think the dangers are associated with growing debt?
Please click here to read Part 2.
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