Politicians are relatively silent about the dangers of debt Pt 3

But I’m not a politician.

(I just keep on talkin'.)

Though federal government leaders may fear telling Canadians - for reasons of self-interest - they grow debt 80% of the time (i.e., during 43 of the 54 most recent years) and that, from Apr. - Dec. 2009, debt charges alone swallowed up all corporate income taxes and most of the Employment Insurance premiums, I feel Canadians need to know some of the dangers associated with our growing debt load.

Though I don’t agree with everything the Canadian Taxpayers Federation (CTF) proposes about debt and taxes, you can see the debt grow by watching their DEBT CLOCK.


["We may need a spare job soon. I'm lookin."]

Now, when they say that ‘every household has a budget and every Canadian family has to live within its means’ and that ‘the only difference between a household’s budget and that of government is the number of zeros’ I only partly agree. Household and national budgets differ in several ways other than size.

Though we should look at each one carefully, they do differ in scope, significance and collateral levels or holdings with perceived value.

For example, I know how much my hockey card collection is worth, but raise your hand if you can tell me the value of Newfoundland and its mineral and oil deposits.

However, when the CTF says, ‘all the talk of “temporary” this and “temporary” that is bunk,’ I tend to agree. Our habit, as households and as a country, is to grow debt, not savings. 

Then CTF mentions a few perceived dangers:

Without public pressure the country will spiral into prolonged deficits (as is our habit)

crowd out private investment

permanently increase the size of government

and ultimately increase taxes to pay for it all

My own perceptions differ somewhat, but CTF has some good points.

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You may find a visit to CTF’s ‘Debt’s Damage’ and ‘Debt History’ interesting and worthwhile.

Please click here to read Part 4.

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