OK CANADA… if this doesn’t make you want to have a new political party in Canada so that things are run properly for the benefit of Canadians, not the benefit of friends of our PM, then we don’t know what will.
Contact the CVP and ask how little you need to do to make HUGE difference.
Call it like father, like son.
A new study by the Fraser Institute suggests Prime Minister Justin Trudeau is taking the nation’s finances down the same black hole of never-ending deficits and debt that his late father did when he was prime minister in the 1970s and early 1980s.
“Because the federal government seems to be on the road to revisiting the damaging fiscal policies of the 1970s,” Lakehead University economics Professor Livio Di Matteo warns in, A Federal Fiscal History: Canada, 1867 to 2017, “Canadians should question whether we’re embarking on another transitional period … that, like Lester Pearson’s and Pierre Trudeau’s time in office, will lead to years of deficits and ultimately another debt crisis.”
Di Matteo says that aside from global wars and economic downturns, “the only other time the federal government kicked off a deficit spending spree and expanded the size and role of the federal government, was in the mid-1960s and 1970s under (Liberal prime ministers) Lester Pearson and then Pierre Trudeau.”
That is, Di Matteo warns, until the election of Justin Trudeau’s Liberal government in 2015.
He notes that Pierre Trudeau never once delivered a balanced budget during his 14 years as prime minister from 1969 to 1984 (interrupted only briefly by the nine-month Joe Clark Progressive Conservative government of 1979 to 1980), leaving behind a massive, for the time, $37.2 billion annual deficit in his final year in office.
Under Pierre Trudeau, Di Matteo says, government program spending skyrocketed from $12.9 billion to $84.3 billion, the net federal debt ballooned from $19.3 billion to $212.6 billion and the debt-to-GDP ratio, a key indicator of overall economic health, soared from 23% to 42.2%.
Di Matteo warns that given Justin Trudeau’s financial track record so far, he appears to be following in his father’s footsteps.
During the 2015 federal election, Trudeau promised Canadians that in order to fulfill his election promises, his government would record projected deficits of $9.9 billion in 2016-17, $9.5 billion in 2017-18, $5.7 billion in 2018-2019, and a surplus of $1 billion in 2019-2020.
He also promised that by 2019-2020, the Liberals would reduce the debt-to-GDP ratio from 30% to 27%.
But following the election, when the Liberals presented their first budget in March, 2016, Trudeau almost tripled his projected 2016-17 deficit to $29.4 billion, followed by $29 billion in 2017-18, $22.8 billion in 2018-19, $17.7 billion in 2019-20 and $14.3 billion in 2020-21.
Since then, the Trudeau Liberals have added $31.7 billion to their projected deficits and abandoned their election promises to eliminate the deficit by 2019 and to reduce the debt-to-GDP ratio to 27% by that year.
Indeed, Di Matteo notes, under Trudeau’s current fiscal plan, program spending is projected to hit $291.4 billion this year, a $40 billion increase from 2014, while the net debt of $727.5 billion this year will increase to $759.5 billion in 2017-18.