Federal economic stimulus a bad idea
Like so many other Canadians I am left wondering whether the federal government really understands the concept of national debt, or perhaps even the concept of debt at all. Apparently they do not. Chrystia Freeland recently announced that the Liberals would spend an additional $100 billion in addition to the already existing $381 billion pledged for economic stimulus.
Do they really understand how much money this is? An amount like this comes close to half a trillion dollars. I recommend those doubting the reality of such numbers view the Youtube video entitled “A Staggering Graphic. One Trillion Dollars Visualized” to understand exactly how much a trillion dollars is. The only debt load that has come close to the one being proposed by the Liberals is that endured during the Great Depression.
When you consider that Canada was already on shaky economic ground concerning our debt to GDP ratio when the COVID-19 pandemic arrived, we should all be more than a little alarmed by this latest announcement by the federal Liberals. If we want a repetition of the 1990s debt crisis, magnified by current crisis conditions then we definitely going in the right direction.
But if we ever want to restore fiscal common sense to Canada and avoid impoverishing future generations with third world style debt and economic uncertainty, then the right direction is not the one we are pursuing now.
One has to wonder “Where are the adults in the room?” And the answer comes back pretty clearly. They are gone, and the Liberal Party of Canada under Justin Trudeau are playing in the mud in their stead.