Comment 73225

By A Smith (anonymous) | Posted January 22, 2012 at 03:37:17 in reply to Comment 73224

From 1982-98, the number of Canadians on welfare averaged 8%. During this time period, GDP increased by 5.64%/yr. As for inflation, the average house increased by 4.43%, while oil prices fell from $39.30 CDN to $18.61 CDN.

Since that time, the number of people on welfare has declined substantially and is now at 3.46% (Ontario). With less people on welfare, our economy should be stronger, right?

Well, from 1998-current quarter, GDP in Canada has increased 4.50%/yr. However, the cost of a house has increased faster, by 7.10%/year (1998-2011) and oil has increased by 12.55%/yr.

Oh, but what about the deficit and the debt?

Private sector surplus = Public deficit + current account surplus...

Furthermore, because we issue debt in our own currency (unlike Greece, Portugal, Ireland, etc), there can never be an issue of solvency. All the feds have to do, to make interest payments, is issue more debt.

The good news is, we can increase welfare benefits, decrease household debt, and have a productive economy, but we have to stop worrying about the public debt.

The public debt is a myth/lie. If you don't agree, please tell me why you think it is a real concern.

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