(This column originally appeared in the Toronto Sun)
By: Candice Malcolm
When we give politicians an inch, they take a mile. In the case of the Trudeau Liberals, we gave them permission to indulge in deficit spending – itsy-bitsy “modest deficits” we were assured – and they’ve instead plunged the country into an out-of-control debt spiral.
Trudeau’s spending spree is projected to leave us with $1.5 trillion in federal debt by 2045. That’s the thing about a debt spiral. It starts off by just skipping one payment on your credit card – you can make up for it next month.
But the following month comes and goes, and you just don’t have enough to pay it off. Your debt continues to grow, and now you’re paying interest too.
You know the solution: cut up the credit card and curb your spending. It’s tough medicine, but it’s your responsibility; no one is going to pay it off but you.
With Trudeau, he claimed that three years of deficits would boost the economy through infrastructure spending. He said it would grow the economy, and the budget would “balance itself.”
On Tuesday, the Liberal government delivered a sliver of good news: the economy is growing and revenues are up, and so, the deficit is smaller than they previously projected. It’s down to $19.9 billion, not the $28.5 billion it was pegged at earlier this year. Of course, it’s still 109% higher than the $9.5 billion Trudeau pledged in 2015.
The economy is growing and revenues are up, just as Trudeau said. So, why hasn’t this growth translated into erasing the deficit? Why isn’t the budget balancing itself?
Because, as political comedian P.J. O’Rourke explained, “giving money and power to government is like giving whiskey and car keys to teenage boys.”
The budget isn’t balanced because the Trudeau Liberals keep spending more of our money. Liberal politicians will always find new and creative ways to spend our money. After all, they believe they can spend it better than you can.
Alongside Trudeau’s good economic news, he also announced $8 billion in new spending. Despite new revenues, there’s still no plan to get back to a balanced budget. Two steps forward, one step back.
The question still remains: if the deficits were a short-term measure designed to spur economic growth, and now the economy is growing, what’s the continued justification for deficits?
There is none. There is no credible economic theory that calls for deficits during times of economic growth.
Besides, Trudeau’s deficits have nothing to do with the second quarter surge in our economy. His dabbling of money to his favourite special interest groups and his own pet causes are not the driving force behind our growth.
If anything, the growing economy will soon mean higher interest rates, which means we’ll pay more interest on Justin Trudeau’s federal credit cards.
It used to be the case that during good economic times, we’d save for the future. For the federal government, they could start chipping away at the $650 billion in federal debt, or start putting money aside to cover the surging costs of health care and pension liabilities for retiring baby boomers.
Instead, the feds have come up with...(READ MORE)