Combined with massive money printing by the Bank of Canada, and the risk to our economy becomes clear.
In a Financial Post article, respected economist Jack Mintz explains how truly immense the Liberals spending has become:
“What is surprising is that Canada will have the distinction of running the largest deficit among all countries — advanced, emerging and developing — at 19.9 per cent of GDP. This even “trumps” the United States, which has the second highest forecast deficit at 18.7 per cent. And it’s almost double the average deficit for Euro area countries (10.1 per cent of GDP).”
And, while an increase in spending was necessary to address the economic damage caused by the China Virus, the rate of spending has now soared above even WW2 levels:
“Here’s another kicker. Spending by all levels of government in Canada is projected to hit 57.3 per cent of GDP in 2020. That’s more than at any time in our history, including both world wars. Despite the big U.S. deficit, Americans will be spending only 47.2 per cent of GDP, fully 10 points less than us. Canadian governments are projected to spend more than Sweden (53.3 per cent of GDP), Germany (53.9 per cent) and the EU in general (55.7 per cent), reversing a long-standing tradition in which our fiscal policies stood between Europe’s and our American neighbours’.”
Notably, Canada’s unemployment rate is higher than most developed nations, meaning the government is spending more for a worse result.
Additionally, the Bank of Canada has been printing (or more accurately, creating on a computer) money at a rapid pace, as the charts below show:
This is the kind of thing we would expect to see if the far-left NDP got into power.
Instead, the supposedly ‘centrist’ Liberals – who are clearly moving in a socialist direction under Trudeau – are burning through money at a stunning clip, with serious consequences that will be faced by the Canadian People.
Photo – YouTube