Politicians are relatively silent about the dangers of debt Pt 2

It strikes me funny that households, municipalities, provinces and Canada as a whole are doing so well at accumulating debt but politicians don’t talk about it too much.

And then there’s me.

Is there anything we do as well?

For example: From 1985 to 2011 Ontario’s debt will grow from about $30 billion to $205 billion.

On average, the government of Ontario grows the debt at the rate of almost $6.7 billion per year.


["Need a hole dug? Anyone?"]

Also, Ontario grows debt 69% of the time (i.e., during 18 of the 26 most recent years). (Source: The 2009 Ontario Budget)

Who can do it better, I ask you?

I’ll tell you who - the Federal Government of Canada.

From 1961 to 2014 Canada’s debt will grow from about $15 billion to $620 billion, and on average, that’s about $11.5 billion per year.

As well, the Government of Canada grows debt 80% of the time (i.e., during 43 of the 54 most recent years). (Source: charts from Dept. of Finance Canada, found in Feb. 27 issue of The London Free Press)

Though our debts are growing healthily while I type, almost like clock work, very little is heard from government leaders about it, particularly any associated dangers to our homes (families), municipalities, provinces and the country.

Why is that?

Do government leaders fear talking about, for example, the amount of money Canadians spend each year paying debt charges alone?

I would say, I bet they do, because it’s no fun telling hard-working Canadians that, from Apr. - Dec. 2009, debt charges ($22.2 billion) swallowed up all corporate income taxes ($15.4 billion) and most of the Employment Insurance premiums ($10.8 billion).

There are likely many other reasons too that cause government leaders to keep long discussions about our debt off the agenda.

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What are some of the dangers associated with growing debt?

Why do governments keep discussions off the agenda?

Please click here to read Part 3.

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