Three words, in any order, and to any degree, might be used to describe our new leader, Prime Minister Justin Trudeau: naive, irresponsible and reckless — but with a sunny disposition.
It’s clear to anyone paying attention that the world was near financial collapse seven or eight years ago. Canada fared better than most countries during this great recession but being last to drown in a sinking ship isn’t much solace. In 2013, Canada government debt topped $1.2 trillion, based on a Financial Post Article dated May 16, 2013.
The Fraser Institute wrote in an article dated April 27, 2012: “you must have a complete understanding of all the taxes you pay.”
They go on to say, “summed up, the average Canadian family faced a tax bill of $30,792 in 2011 against income of $74,233. That means 41.5 percent of the family’s budget went to paying for government.
For perspective, 33.6 percent of the budget went to paying for food, clothing, and shelter combined. Indeed, families now pay more in taxes than they do for basic necessities.”
Further they say: “it doesn’t end there. Most federal and provincial governments are running budget deficits, meaning that current taxes do not cover current government spending.
Canadian governments of today are putting off tax bills that will inevitably come due. Including deferred taxation (deficits) in the total tax bill raises it an additional $2,663 to $33,455.”
It was clear to our current government well before they were elected that economies everywhere in the world are struggling. Having been in my own business for many decades, I learned that you have little control over revenue, the only things you control are expenses.
All political promises come with a real cost. How does a government make promises that clearly can’t be paid for from current or projected revenues and suggest that borrowing the money is the answer when many of us are currently paying upwards of 45 per cent of our gross income for the current services we can’t afford now?
For those who aren’t into numbers, here’s all you need to ask: how do decreasing revenues support increasing expenses? In the real world, they don’t. Look at the current value of the Canadian dollar, or lack thereof, as evidence.