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Posts Tagged ‘deficit’

During the 2015 Canadian federal election campaign, Liberal leader Justin Trudeau, now Prime Minister, promised to borrow money (at interest) to pay for $60 billion in new infrastructure investments, as opposed to the NDP’s plan to balance the budget in their first year.

It was, and remains, a false frame of having to stay in a deficit and grow the debt by borrowing at interest for infrastructure investments when the government of Canada, all its provinces, and its municipalities, have the statutory authorization under the Bank of Canada Act to borrow money, effectively, or, in actuality, interest-free.

For instance, money can be borrowed effectively interest-free when the Bank of Canada issues bonds that are held by the government, and when it buys its own bonds, as the government of Canada is the sole shareholder of the bank, and all profits, after expenses, will go back to the government.

But even better, the federal government can borrow money, interest-free, by requesting interest-free money, to borrow for infrastructure investments today.

So, despite Trudeau seemingly one-upping the NDP in saying that he would invest in critical infrastructure by borrowing today, as opposed to putting off such investments in favour of immediately balancing the budget, he bought into the typical false frame that we have to borrow the money at interest as opposed to borrowing it interest-free.

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English: Tim Hudak.

From the August 14, 2012 Waterloo Region Record article, PCs to take ‘nothing for granted’ in byelection fight: Hudak, Ontario PC Party leader Tim Hudak said:

Every time we pay and use those important tax dollars that go to interest on our debt, it’s taking critical dollars away from the front lines we want to move forward in health care and education.

Did he forget that it was his party that ran up a $5.6 billion deficit and handed out extra millions in interest payments to bankers, despite claiming they would balance the budget?

It’s yet more rhetoric from a typical big party politician, and why I won’t be voting for any of them this time around either.

Previously, I wrote the 2011 article, Ontario PC leader Tim Hudak’s promises shows he’s a shameless opportunist.

And just because a party has freedom in its name doesn’t mean I’ll vote for it, as I demonstrated with my article, Why I’m not voting for the Ontario Freedom Party in this 2011 provincial election.

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On March 23, 2010, The Toronto Star reported:

“There will be no tax increases or new taxes in Thursday’s provincial budget despite a record $24.7 billion deficit this year, Premier Dalton McGuinty and his finance minister said Monday.”

However, just three days earlier, Ontario’s Energy Minister announced a new ‘green’ tax on all Ontario electricity bills, set to be issued April 15 of this year.

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While Social Security in the United States is projected to be in deficit by 2010, Canada’s is projected to be solvent until 2075. The difference? Canada fixed its system in 1997 with a combination of higher premiums and lower benefits.

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