More debt, more deficits.
The Trudeau Liberals have unveiled their full election platform.
And unsurprisingly, there are deficits and debt as far as the eye can see.
While the government was projected to run a deficit of $11.2 billion in the 2023-2024 fiscal year, the Liberals are now saying the deficit will be $21 billion under their new spending plans.
Debt will rise by $31 billion in the next four years – if the Liberal plans are put into effect.
In the 2015 campaign, the Liberals promised 3 years of ‘modest deficits,’ and claimed they would balance the budget in 2019.
Instead, the deficits went on and on, and now those deficits will get even bigger.
The Liberals are claiming that their deficits are sustainable, since the debt to GDP ratio is remaining steady or declining.
Unfortunately for Canadians, this argument would have more credibility if the increased spending was going toward things like infrastructure that had a long-term beneficial impact for GDP and economic activity. However, the Liberals are instead increasing government spending year-after-year without a noticeable impact on economic growth (which is slowing), and are also increasing taxes, which slows economic activity and takes money out of the pockets of Canadians – who are already facing record-high household debt.
As a result, when Canada faces a recession, our debt will be higher, Canadians will be more vulnerable economically, and the government will have less room to boost growth since spending is already through the roof.
This means that the Liberals may be able to get away with higher deficits for now, but our whole country will pay the price when we face a downturn or a crisis.
Photo – YouTube