New analysis casts doubt on schedule to eliminate deficits

[Smallc]

Paying people to resod their lawns increases productivity?

No, that created jobs right now.

[Argus]

What was he talking about? The last huge deficit was left by Mulroney. Also if you read his economic statement he hid our exisiting deficit behind the projected sale of assets.

The debt was created by the Trudeau/Chretien Liberals. It was largely that debt, at a time of double digit interest, which balooned under Mulroney. Chretien, in his first several years in office, also had large deficits.

[Argus]

Private prisons would be another area of concern. When anything becomes for profit, safe practices take a back seat.

Also, in private prisons there is no motivation for rehabilitation. They don't want you to get out, and certainly don't want you to stay out. That one concerns me greatly. We tried that in Ontario and it failed miserably.

Stephen Harper opens door to prison privatization

Actually it was working quite well. It was halted because the ideology of the McGuinty Liberals was against it.

[Smallc]

Maybe we could privatize your job?

[Moonbox]

The debt was created by the Trudeau/Chretien Liberals. It was largely that debt, at a time of double digit interest, which balooned under Mulroney. Chretien, in his first several years in office, also had large deficits.

Yes our current debt load can be blamed largely on Trudeau (curse his name). Mulroney certainly didn't help but the MATH proves that Trudeau's deficits are the reason why people vomit at the mention of deficits today.

For the record I also think it's extremely optimistic to assume the federal deficit will be gone in 5 years.

Edited February 3, 2009 by Moonbox

[Chris in KW]

The debt was created by the Trudeau/Chretien Liberals. It was largely that debt, at a time of double digit interest, which balooned under Mulroney. Chretien, in his first several years in office, also had large deficits.

Trudeau, yes. Mulroney, yes. Chretien?

If I recall correctly, the Chretien/Martin LIBERAL governments paid off more than $100 Billion of debt. Where are you getting your numbers from?

[madmax]

Flaherty ran a deficit in his final year. The Liberals who followed him lied about it to make it seem worse, then greatly enlarged it even while greatly increasing taxes.

The LPC didn't make it look worse. It was what it was. The LPC increased taxes.... yes.

They used the increased funding not to pay down the deficit but to buy off public sector unions, including the doctors and nurses and teachers - who stopped complaining about health care and education problems the instant they got fat raises.

There is little doubt that Public Sector Unions, Doctors, Nurses and Teachers are by and large Ontario Liberal Supporters.

But to you Mr. Public Servant POT... I think you need to meet MR. KETTLE.

Give me a break with you throwing stones at Ontario Public Sector Workers while you feed at the trough of the Federal Public Sector.

Next time you waggle your finger, remember your nose is in the way.

[Keepitsimple]

Trudeau, yes. Mulroney, yes. Chretien?

If I recall correctly, the Chretien/Martin LIBERAL governments paid off more than $100 Billion of debt. Where are you getting your numbers from?

Here's a good article that tracks the history of our Federal Government debt:

Link: http://www.calgaryherald.com/jobs/job-list...2421/story.html

Canada began deficit spending with zeal under the Trudeau government in 1968. What followed was nearly 30 years of multibillion dollar deficits and compounded interest payments, which ballooned the debt and brought Canada to the brink of insolvency. The debt was once 70 per cent of Canada's total economic output, hamstringing government's efforts to reduce taxes or increase spending in priority areas.

The federal government has a handy link on the Finance website that includes its Fiscal Reference Tables so it is possible to track when the government began its dizzying debt spiral. (fin. gc.ca/frt-trf/2008/frt08_3-eng.asp#15). The data goes back to 1961-62 when Canada's gross debt was $21 billion and its net debt (after taking into account financial assets) was a mere $15 billion.

Year over year increases were modest through the '60s --with the federal government adding about $1 billion to the net debt each year. When Pierre Trudeau took power in 1968 he was handed a net debt-load of $19 billion. By the time he left office in 1984, the net debt stood at $172 billion.

Even though his successor, Brian Mulroney, ran operating surpluses for most of his time as prime minister, the interest payments on the Trudeau debt were so enormous ($20 billion in 1984, climbing as high as $45 billion in 1991) the federal government continued to be dragged into the red every year. By 1993, the net federal debt stood at $487 billion.

In recent years, the government began to keep track of physical assets (bridges, buildings, roads and submarines) and then subtracts these assets from the net debt. After deducting out the value of physical assets, Mulroney passed on a federal debt of $449 billion.

Under Jean Chretien, the federal debt peaked at $563 billion in 1996-97 and a 10-year stretch of surpluses allowed the federal government to reduce it to $458 billion by the end of 2007-08.

There has been great fanfare over the amount of debt that has been paid down in the last decade. Reducing the federal debt by $105 billion is indeed an accomplishment.

However, the government never issues press releases proudly proclaiming how much money it has spent on debt service charges over this same period. That number is $421 billion. Going back to 1984 is even more sobering: since that time the federal government has spent $942 billion in interest payments to service its behemoth debt.

[daniel]

Trudeau, yes. Mulroney, yes. Chretien?

If I recall correctly, the Chretien/Martin LIBERAL governments paid off more than $100 Billion of debt. Where are you getting your numbers from?

He needs to add Harper/Flaherty to the list of debt-builders.

[madmax]

He needs to add Harper/Flaherty to the list of debt-builders.

Lending institutions enjoy Canada in a Debt Prison. There is a reason that money is loaned at interest. If the money is being used to service the debt, it can't be used for the public good.