My New Economic Plan Pt 6: Get small before you get low

As debt grows and serious economic damage occurs (please link to Pt 5), our economic, environmental, and social choices grow more limited and the whole idea of ‘getting small before we get low’ becomes less of a voluntary choice.

In a recent article about Canada’s growing debt we’re informed by Tom Velk, an economics professor from McGill University, that debt puts us on “a road to higher taxes and less government services in the long run.”

That doesn’t sound very positive.

Velk says, "You have higher taxes, less growth and more and more of the economy managed politically and therefore inefficiently."

He doesn’t shine a very positive light on government intervention, does he?

The article reports that while Velk would like to see the government start paying down debt quickly, he doesn't expect it to happen.

"We have enough left-wing wingnuts to tear up the streets if these programs are cut back so even a guy like Harper won't do it."


["How much should I trim off?"]

Though it’s apparent Velk doesn’t hold wingnuts in very high regard or trust that our roads will hold up under pressure, he does put his finger on something we know is true.

Any mention of raising taxes raises the blood pressure of many Canadians (not all of them wingnuts, to be sure). And talk about lowering services certainly lowers the level of civil debate in the House of Commons.

After all. What usually happens when taxes, government expenses for social programs, fuel and car and housing costs rise?

Our choices change. Our lifestyle changes. Our old, ever-expanding Levis have to last longer.

And by gum, many folks don’t like the sounds of any of that.

Our aging baby boomers have been promised health care and pensions and the government may not have the money to pay for it all. (Most private and government pension plans are seriously underfunded).

My gosh, if I have enough strength to lift my arms, maybe I’ll be up in arms and raisin’ a ruckus at the nearest rally someday!!

In a NY Times article entitled ‘America’s Sea of Red Ink Was Years in the Making’ I read the following from the US point of view:

“The solution, though, is no mystery. It will involve some combination of tax increases and spending cuts. And it won’t be limited to pay-as-you-go rules, tax increases on somebody else, or a crackdown on waste, fraud and abuse. Your taxes will probably go up, and some government programs you favor will become less generous.”

It seems to me that on either side of the border there will be no place to hide from growing debt and its debilitating consequences.

Is it any wonder that I mention - every once in a long, long while - we should reduce spending, pay down debt and save money for the tough times ahead?

Or, get small before we get low?

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No, it’s no wonder.

There is no such thing as a free lunch and we’ve been living too high off the hog for too many years.

Whatever ‘too high off the hog’ means, I feel it’s true.

Back bacon, anyone? Anyone?

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