Since 2005 Ottawa has increased program spending at twice the rate of inflation. Even before the wheels came off the economy last fall, federal spending had hit the highest point ever, under Stephen Harper. Despite pledging in the last election he would not allow an annual deficit, it’s now going to be at least $50 billion (a record), and will take years to reduce.Thanks Garth Turner.
The Parliamentary budget officer estimates at least $200 billion will be added to the national debt. That debt is financed mostly by bonds. When the government is forced to flood the marketplace with new bond issues, it competes for capital, and forces mortgage rates up. That interest on $600 billion debt is tax money, transferred from your income to the pocket of investors. It doesn’t buy a single new MRI machine, fund a school or fill a senior’s prescription.