Harper Government’s New Debt vs. Debt Repayments

Politicians in the current government are often caught appeasing deficit weary Canadians by assuring us that they paid down loads of debt before turning on the taps of “stimulus”.  Well how true is this claim?  Bunk.  At least according to you know, facts.

Below is a calculation by the Canadian Taxpayers Federation, spelling out exactly how much the government has paid down in debt since taking office in 2006 versus how much it has racked up in debt already.  Also included is how much the government is expect to rack up by 2014-15, if one can believe the claim that we will emerge from deficit without either spending cuts or tax increases.

What the numbers say is clear:

  • For every dollar paid down in debt, the government has added more than two dollars, so far.
  • For every dollar paid down in debt, the government is expected to add 6 1/2 dollars before getting back into black, if you can believe the projections.

So the next time politicians make that claim to calm your fears, ask them for the numbers.

Debt Balance

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October 14, 2009  Tags: , , , , ,   Posted in: Blog Content

One Response

  1. wilson - October 14, 2009

    Did you know that in 2009 the Harper Government (so far) is spendning LESS than in 2008….(smiling, teehee)?

    ”…In Canada, the first and second quarter Canadian GDP results show that government spending at all levels of government (federal, provincial and local) increased by 0.5 and 0.8 per cent in each quarter respectively (compared to 1.4 per cent in the first quarter of 2008 and 1.1 in the second). Government capital investments increased by 2.1 and 3.7 per cent in the first and second quarter of 2009 compared to 4.4 per cent in first quarter of 2008 and 2.8 in the second quarter.

    In other words, Canadian governments actually slowed their increases in spending in the first two quarters of this year compared to 2008; hardly what one would call stimulus spending…”

    http://thechronicleherald.ca/Opinion/1147473.html

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