Does government debt really matter?

Let’s be very careful about electing a government that’s bribing us with our own money

Does government debt really matter?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…

Federal government’s appetite for spending is a serious problem

To pay for this rapid rise in public debt, future generations will face higher taxes

Federal government’s appetite for spending is a serious problemBy 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…

We must get federal government spending in check

Despite higher-than-budgeted revenues, there’s been no reduction in the federal deficit in the last four years

We must get federal government spending in checkBy 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…

Bad budget decisions make Canada vulnerable

Deficit finances put the country in a difficult situation as hints of recession abound. And the Liberal government doesn't seem to care

Bad budget decisions make Canada vulnerableBy 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…

Government spending must be a federal election issue

Sound fiscal policy can come from any party. Canadians need facts, not fiction and rhetoric

Government spending must be a federal election issueBy 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…

Trudeau government’s reckless spending digging deep hole

Future generations will pay higher taxes to finance today’s debt growth. And what has this record debt brought us?

Trudeau government’s reckless spending digging deep holeBy Jake Fuss and Milagros Palacios The Fraser Institute Throughout its mandate, rather than acting to reduce the federal budget deficit, the Liberal government has made “investments” in the form of more and more spending. Of course, this plan relies on a wave of good fortune – with positive economic growth and higher-than-expected revenues each…

Budget deficits can increase social inequality

The burden of the debt financing falls on the whole population, and low-income Canadians can least afford to contribute

Budget deficits can increase social inequalityThere’s been much talk about the federal government’s attempts to enact redistributive policies to reduce income inequality in Canada. But the way these measures are funded could increase inequality. One think-tank in Quebec surveyed a panel of 70 policy experts who noted that the latest federal budget would, on the whole, reduce inequality. I contributed…

Canadian governments addicted to personal income tax

We need a retooled and simplified tax system that’s suited to a 21st-century economy being reshaped by technology

Canadian governments addicted to personal income taxThe latest federal budget, delivered in March, contains a wealth of information on the activities of the government, as well as the money it raises for its endlessly expanding array of expenditure, regulatory and income support programs. This year, the federal government expects to spend $356 billion in total. Roughly $330 billion is allocated to…

Federal budget full of puzzling contradictions

With one hand, the government gives. With the other hand, it takes away benefits to taxpayers

Federal budget full of puzzling contradictionsBy Jason Clemens and Jake Fuss The Fraser Institute Commentators have noted the thrown-together nature of the 2019 federal budget released last week. There seem to be several ill-considered initiatives and some parts of the budget openly contradict other government programs and reforms. One of the more prominent contradictions relates to housing policy. In 2016,…

Liberal budget sells the farm along with quotas

From supply management to food strategy to rural Internet to food processing to export targets, the government got it all wrong

Liberal budget sells the farm along with quotasMost people expected an electoral budget from the federal government this week and that’s exactly what Canadians got. But for the agri-food sector, the budget was underwhelming at best and provided little hope for the near future. Let’s start with supply management. The Liberal government opted to do exactly what the previous Conservative government did…