The year’s hardships, and concern for what’s next in 2021, can refocus our vision and practices at the personal and social levels
As we enter the final quarter of this year, many Canadians are likely more than ready to say goodbye and good riddance to 2020, the year of the pandemic. But what if, in some ways at least, 2021 could actually be even more difficult? Consider this: Besides killing nearly 10,000 Canadians and more than one…
The federal government can’t continue to ignore the warning signs of a slowing economy. It should limit discretionary spending now
By Tegan Hill and Jake Fuss The Fraser Institute The recently-released Economic and Fiscal Update demonstrates the federal government’s proclivity for marked increases in deficit-financed spending despite warning signs of a slowing economy. New borrowing and a larger deficit increase the risk to federal finances should a recession occur. The federal update pegs the deficit…
Canada’s debt has grown faster than the economy. That dangerous pattern casts a shadow over the nation’s long-term financial health
By Alex Whalen and Jake Fuss The Fraser Institute Just before the holidays, the federal government released its fall economic update. It revealed that Canada’s federal debt-to-gross-domestic-product ratio increased in 2019, meaning Canada’s debt has grown faster than the economy. This is particularly important because the government chose the debt-to-GDP ratio to guide federal fiscal…
It’s right for Canadians to value a just society that leaves no one behind. But relying on ever-increasing spending to do so is driving us toward bankruptcy
I know what it means to live in poverty. I grew up in a large family in a small village in Cape Breton, the fourth of eight children. My father was a wonderful man who struggled with alcoholism his whole life. We had no running water and only a coal stove to heat the house.…
Any voluntary increase in spending by the federal government would further exacerbate the deficit
By Jake Fuss and Milagros Palacios The Fraser Institute Many economists have warned of a U.S. recession in the near future, in part due to the rise of trade protectionism, political turmoil and market volatility. Of course, a U.S. recession will also harm the Canadian economy and create significant problems for federal finances. So when…
Let’s be very careful about electing a government that’s bribing us with our own money
Before we select our next set of national leaders in the Oct. 21 federal election, we should be paying attention to matters that don’t usually concern us day to day, like the treasury. What the treasury does we call fiscal policy, but it’s essentially budgeting: determining levels of revenue (taxes) and expenditure (all the programs…
To pay for this rapid rise in public debt, future generations will face higher taxes
By Jake Fuss and Milagros Palacios The Fraser Institute With seemingly little regard for the consequences, the current federal government has increased spending throughout its mandate with no sign of change any time soon. This spending trend has been a stark departure from promises made during the 2015 election campaign, when the Liberals pledged to…
Despite higher-than-budgeted revenues, there’s been no reduction in the federal deficit in the last four years
By Jason Clemens, Tegan Hill and Milagros Palacios The Fraser Institute The period from the mid-1960s to 1995 was terrible for federal government finances in Canada. The government borrowed every year but one, interest costs consumed ever-greater shares of revenues, the country’s debt ballooned, and we came within a hair of a currency and debt…
Deficit finances put the country in a difficult situation as hints of recession abound. And the Liberal government doesn't seem to care
By Tegan Hill and Milagros Palacios The Fraser Institute The latest economic news foreshadows recession. Canada’s persistent government deficits will only worsen the situation. Recently, the U.S. stock market had its worst day in 2019, plunging 800 points. The bond market is showing weakness with short-term interest rates higher than long-term ones, a situation that…
Sound fiscal policy can come from any party. Canadians need facts, not fiction and rhetoric
By Jake Fuss, Tegan Hill and Jason Clemens The Fraser Institute As the fall federal election approaches, political commentators will bombard Canadians with sometimes misleading rhetoric. But Canadians need facts, not fiction, to make well-informed decisions. Such rhetoric undermines the public’s understanding of good policy and on one key issue, creates confusion around the size…