• PM Harpers $34 billion Deficit

    Listening to CBC I hear that the Canadian Federal government is going to do $34 billion in deficit spending this year. This makes me furious.



    Canada set to post C$34 bln budget deficit-PM aide

    OTTAWA, Jan 22 (Reuters) - Canada will post a deficit of C$34 billion ($27 billion) for the coming fiscal year but will return to a surplus position in five years, an aide to Prime Minister Stephen Harper said on Thursday.

    The aide also said Canada will have a budget deficit of C$30 billion in the following fiscal year. The Conservative government will unveil its budget on Jan. 27.

    ($1=$1.26 Canadian) (Reporting by Randall Palmer, writing by Frank Pingue; editing by Peter Galloway)

    This blog is for personal finance and credit etc. The relationship of a $34 billion deficit to personal finance is pretty easy. If the government isn't making the income it needs through taxes, then it needs to cut spending. plain and simple

    This sends a sharp message to consumers that it's ok to get into debt, and to run up your debt level to horrendous levels.

    This , in my opinion is the wrong message.

    Canadians need to understand that if they have to cut back with benefits because we can't afford them, then that's what we need to do.

    Canadians need to cut back anyway. They're too much in debt, and the weight of debt per household is harming alot of families. For the federal government to take on more debt is adding to that weight load.

    HOW LONG AND HOW MUCH?
    My other point is this: it took 10 years to pay down $100 billion in federal debt. and these were in abundant times. Canada was very prosperous.

    The next few years are going to be slower as far as federal income goes. If the federal government takes on $34 billion in debt, how long is that going to take Canadians to pay down the next time.

    How many exports are we going to need, to pay down the debt. How much natural resources are we going to need to sell outside the country to pay down the debt?

    My impression is that we should not do deficit spending under any circumstances. If the federal government can't afford to pay for something with existing revenue, then it would send a better message to Canadians to NOT spend the money.

    Just my quick opinion.


 
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2 Comments
On Jan 30, 2009, David Leonhardt Said:
Bang on. We are suffering from a credit crunch because we've spent too much. How will we ever get back on our feet if the government (that's us!) spends too much, too? Can you tell that there are no credit counsellors in government?
On Jan 27, 2009, a brooks Said:
i disagree with you... canadians need federal money right now. there's alot of unemployment and for the sake of jobs we need the money

the best way to do that is to invest back into the country with infrastrcuture spending

my husband just lost his job and htis is a way for him to find employment in the trades
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