$8,000,000,000

[Newfie Canadian]

If you were Ralph Goodale right now, and you could spend the surplus, what would you do?

It seems pretty obvious that the government of Paul Martin is continuing the tradition of lowballing the surplus estimates.

http://www.ctv.ca/servlet/ArticleNews/stor...?hub=TopStories

[Stoker]

If you were Ralph Goodale right now, and you could spend the surplus, what would you do?

3 Billion into Healthcare, 3 Billion into defence, 1 Billion into tax rebate, and 1 Billion into the blackhole known as other.....

[RB]

most of it will go towards the debt

but i'll take a couple from blackhole known as other to sue the mindless rascals for illegally making money off the people

[JWayne625]

Don't say that too loud, Quebec will hear.

Quebec faces a bleak future with a declining birthrate and a heavy debt load, Premier Jean Charest told a forum of provincial leaders on Tuesday.

They'll start threatening to separate again, and since Martin's BIG GUNS are from Quebec, they may start worrying about their place at the Canadian troth, and start another sponsorship program. Or worse yet, transfer even more federal government offices into Quebec. God forbid!

[caesar]

They can send me a couple million. I am not greedy. Quickly now or I will threaten to separate.

[playfullfellow]

I agree with caesar, wouldn't getting a bit of a cut of that myself but that is very unlikely. Every yahoo and special interest group will have their hands out. Civil unions will balk at any offer made to them now, they figure there should be more. Health care groups will figure they should get a bigger chunk because they suffer so much already. Qubec will figure they need a larger slice of the pie as they are so hard done by. Gobs of money will be spent trying to figure out why our sub burnt.

If the money is going to get wasted, lets see it go to our debt. Proper tax rebates and help our ag industry get it's problems figured out. Maybe even set up a rainy day fund that can earn some interest. Plenty of things can be done but I doubt the Liberals will do anything usefull to the average Canadian.

[Newfie Canadian]

Looks like RB is right on the money, pardon the pun.

I didn't know it was a law though.

Under current law, all federal budget surpluses must be used to pay down the federal debt, which now stands at $510 billion.

That sounds like a Chretien/Martin thing.

[August1991]

Does it make any difference if the federal government pays down the debt or if it cuts taxes? In both cases, it is not using the money to buy anything but instead it is giving money (back) to individuals.

Hence, I see no difference.

I take $100 from you and then return $40. Does it make any difference whether I say the $40 is a "gift" or I say the $40 is partial reimbursement?

This is all sleight of hand. I would be more concerned with the other $60. What was it used for?

[Newfie Canadian]

I've always thought of using the surplus to pay down the debt as a dodge for doing something real.

[Bakunin]

I don't know who estimate the surplus in the liberal party but he should be fired.

[Newfie Canadian]

I don't know who estimate the surplus in the liberal party but he should be fired.

Goodale, Manley, Martin; take your pick.

[ticker]

harper said the money was there during the election and the liberals said they were broke. now the next test is what kind of deal NS and NFLD are going to get for their offshore oil. another promise from harper that made the liberals pretend to change their position.

[Slavik44]

They can send me a couple million. I am not greedy. Quickly now or I will threaten to separate.

I'll join you, then maybe we can get more money

[maplesyrup]

So Canada's only $510 billion more in debt than Alberta. Not bad.

I say use every cent to pay down the debt. That will bring us to: 510 billion - 8 billion = 502 billion. Before you know it we'll owe less than $500 billion. Jeez, Canada's on a roll, here!

[maplesyrup]

Under current law, all federal budget surpluses must be used to pay down the federal debt, which now stands at $510 billion.

What is the source (URL) for this quote?

[Newfie Canadian]

That's what it says here, 5th paragraph.

http://www.cbc.ca/story/news/national/2004...lus_101204.html

[Guest eureka]

I have seen this only with respect to the USA, but there is a statistical corelation between debt and deficit reduction and the onset of major depressions since that in 1873. Perhaps we should know more about that relationship before enthusiastically endorsing debt paydown and perhaps we should try to discover what are healthy limits

I have never seen an explanation, but I can think of some possibilities. Debt paydown reduces the supply of Bonds as a vehicle for investment. This, in turn, leads to investment in more speculative vehicles and in quality stocks.

As a consequence, prices in those are driven up to unrealistic levels with the inevitable collapse. Money chasing real estate also leads to inflationary pressures there. Inflation can be imagined in all kinds of ways. Economic collapse is a possibility.

I would like to se the money go into social programs generally. The debt is slowly taking care of itself as the economy grows. That is provided we are more careful in the future of the amount of budget deficits - which, I favour also in times of need.

[Newfie Canadian]

The feds are just racking in the money.

On track for another surplus.

[Big Blue Machine]

I think the feds should spend half of it, then use the rest for debt.

[maplesyrup]

I have a question about the budget surplus:

Every year for the past at least half dozen years if not more the so-called business community experts, the economists and the accountants, the Fraser Institute, as well as the Liberals and Conservatives have been way off on their budgetary forecasting, yet the Canadian Centre for Policy Alternatives, the economic wing of the New Democrats has been dead on every year with their forecasts.

What does that tell you?

Having said that there is a major fundamental difference between NDP policy and mine on these budget surpluses. I believe Canada should be paying down its debt as quickly as possible, perhaps doubling or tripling the rate what the Liberals are paying it down, and most certainly to use this extra $8 billion to go 100% towards paying down the debt.

[scribblet]

Hi: does anyone know to whom we owe the federal debt to, and what it was spent on? I think taxpayers deserve to know that.

That surplus was gained on the backs of the taxpayer, I think half should go back to the taxpayer and half to the debt.

[Newfie Canadian]

Hi scriblett.

Here's a link to the statcan page that has a table outling the debt from 1999 to 2003.

http://www.statcan.ca/english/Pgdb/govt03.htm

[fellowtraveller]

I think the feds should spend half of it, then use the rest for debt.

I don't. Since the 'surplus' results from overtaxation and voodoo economics, I'd like to see the 'surplus' applied either to a refund of the money I've unwittingly lent them, or to legislated debt repayment.

Letting the federal government have carte blanche, tacit permission to spend every penny and then some has brought us to the current mess.

The two truly unforgiveable aspects of the huge debt is that it will be passed on to future generations, and that this generation is so eager to add to it.

This year we will pay over $37 billion alone in interest on the national debt- and this in a time when interest rates are very very low. Watch what happens to this 'surplus' when rates start to increase

Imagine what we could do with an extra $37 billion, and then think again about clling for new spending and new programs.

[Guest eureka]

The surplus does not result from overtaxation. When will Canadians learn to think for themselves rather than listening to the fanatics at the Fraser Institute and Harper et al?

The surplus results from underfunding of social programs. It comes on the backs of the disadvantaged in society.

The interest is paid mostly to ourselves as the link someone posted will explain if it can be looked at through eyes that have had the blinkers removed.

As I posted earlier, we may get what we are asking for if we allow this tax fixation to continue. Inflation, recession and social unrest are likely consequences as well as the further defragmentation of the country when the federal government loses its ability to make the expenditures that hold the country together.

Sometimes I wonder if it should be mandatory for Canadians to discuss this in the context of the "dumbing down of Canadians" site. It seems that they will never learn.

[August1991]

The surplus results from underfunding of social programs. It comes on the backs of the disadvantaged in society.

The problem with that argument, eureka, is that all governments together currently take on average about 50% of our income. Half of the 50% is used to buy goods/services on our behalf and the other half is shuffled to other people - often back to ourselves.

How much more money can the government take? Could the government redirect money to social programs? From where? (We spend almost nothing on the military.)