Letter to the Editor: PT 1 “Attack the debt. Here’s how... maybe”

[“Gasoline (should rise) to $1.50 a litre. We will never conserve if it doesn’t hurt not to.” R.S.M. Eberhard]

Here in Canada, because the World Series isn’t on TV yet, the Stanley Cup finals are months away, the weather is cool and wet, the cottage is all closed up and lawn furniture is put away, we have time to talk to one another and many serious-minded people are talking about the severity of our provincial and national debt.

They’re huge. Getting huger.

R.S.M. Eberhard, London, wrote a letter to his local paper recently and included a few ideas about how to tackle the debt... now!

Few would argue with his preamble:



By our profligate lifestyle, exaggerated expectations and for the most part living on credit, both individually and provincially (I think Eberhard could include ‘and nationally’. GH), we have accumulated a debt burden that approaches that of some European countries. Servicing the debt (Reportedly, Ontario pays $40 billion per year on debt interest) is requiring an ever-increasing part of the provincial budget. (Oct. 15, London Free Press)

Readers of my last couple of posts, e.g., 100 Challenges Ahead 4, have seen some of the frightful numbers and have no doubt started to reduce spending, pay down debt and save for the tougher times ahead. Good move.


["My pig ain't scared of no debt gorilla!": photo GH]

Consider R.S.M. Eberhard’s proposals while you’re getting your household in order.

One. “Raise the HST to 15%, with 1% going to the provincial government and 1% to the feds.”

Now, I assume RSM means to target the debt with the 1% figures. I have no problem with that, because it would be interesting and informative to see if 1% would make any kind of dent. Plus, the HST is a consumption tax, and I’m in favour of reduced consumption all around the market place. After all, as RSM points out, “if you buy and spend wisely, you pay less tax.”

He can say that all day long to me. I’m sitting in front of the computer in a very comfortable pair of used jeans (from the Village of Values store @ $7 plus 13% HST - 91 cents - I would imagine) and drinking freshly brewed coffee from an old metal travel mug - sans handle - that will last me another 30 years if it doesn’t fall off my bicycle’s rat trap sometime on my way to the local coffee shop.

However, some of RSM’s other suggestions need some tweaking.

More to follow.

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Please click here to read about another solution to debt.

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