More debt reduction. How fabulous is that?

[Bragi]

Everyone cheers as yet another budget moves Canada from being the least indebted nation in the developed world to, ahh, being even more the least indebted nation in the developed world.

With a litany of critical national needs left unaddressed (e.g. child poverty and social injustice, the future of health care,, crumbling infrastructure, etc.) not to mention pressing global needs (e.g. action on global warming, developing green technology, the needs of the global impoverished, etc.) Canadians applaud as more and more of their dollars are sent off to reduce our already incredibly low national debt.

Sigh. So total is the propaganda victory of the corporate agenda over common sense that we are now totally devoid of even the desire to take action on serious issues, or any awarness that we could do great things if we wanted to. We are truly pathetic.

Not that I'm bitter or anything.

- B

[Mother Jones]

1. Agreed....

the media is failing us big time for not calling it out. (almost as much as the Liberals)

What's worse, here in Ontario, Flaherty has the audacity to say our slumping economy is due to McGuinty not lowering corporate taxes!!!!!

In 2007, Canadian corporations earned RECORD profits.....lowering their taxes will only fill the corporate execs pockets, NOT stimulate the economy.

I'm so sick of his smug face I could scream.

[mynameisearl]

2. It is costing us

about 45 billion a yr to finace the debt , just think what we could do with half of that money if we could get the debt down 50 % . I think we need to pay the bills before we spend more money just like Paul Martin said .
http://www.cbc.ca/money/story/2006/09/27/debt.html

[Bragi]

3. Hah!

About the last thing you can expect in Canada from any reduction is debt service charges is that the money saved will be put to some important national project.

If government wanted to spend money on worthwhile projects, it could do so right now with the resources available to it. There is no impedimenbt at all sicne we now have the lowest debt to GDP ratio of any OECD country.

The reality is that government does not want or intend to spend money on national projects that matter, or it would simply do so.

What it really wants to spend money on are those things it now spends any new dollars on -- war, police, prisons and tax cuts that are either a) idiotic (as in GST cut) or b) favour the wealthy and already high-profit corporations.

They do this while falsely claiming that we can't afford to tackle poverty, or global warming, or education, etc. ect.

What is tragic is that so few people see through the political clutter and the media shills to see what's actually going on, and instead buy into the nonsense that paying down the debt will eventually lead to some glorious day when, finally, we can do the things that need doing. Truth is, we can do them now, if we chose to do so.

- B

- B

[mynameisearl]

4. I dont see how anybody

can say that the country paying over 40 billion a year in interest payments is a good idea . The bills have to be paid and now is the time to do it .

[Bragi]

5. That's certainly the conservative line

I don't buy it. Every country uses debt to finance national investments in things they think will have significant payback, or create significant benefits. As long as the debt to GDP ratio is reasonable, and in line with international standards, and there's a reasonable expectation of a reasonable return on the investment, then debt-financed investments make sense. It's no different than companies incurring debt to finance their investments, which they do all the time.

Far as I can tell, Canada stands pretty well alone in being politically fixated on debt retirement. This goes back to the early 90s, when Canada's total debt and deficit spending (hello Mr. Mulroney) were in fact out of line with international standards. The Libs reduced the debt way down to where it is now, and also ran a big PR campaign on how important this was.

I think they eventually found they liked doing this because they got all kinds of political credit for not spending money, and not doing things like actually mounting meaningful initiatives in areas that matter. Since doing things takes a lot of time and effort, and often results in having to spend political capital, the Libs were happy to make debt reduction their mantra.

Anyway, our debt is now way below international standards, and there is no compelling reason whatsoever to reduce our debt any further. The debt meme, however, is a rationale for right wingers and corporate mouthpieces to decry government action on just about anything. Since they don't support state action to address national issues in the first place, it works out just fine for them if the government artificially starves itself of resources.

So that's my view.

- B

[CHIMO]

6. Sounds Familar

If interest rates were 20% just think what it would cost in new money. But interest rates aren't 20%.
Inflation is making debt mean less.
In the mean time we think that taxing capital and labour at the same rates is fair. Nay, capital should be taxed at less.

The only way value is added is by labour.

And Paul! Well what is the IMF saying about the US debt? Zilch.

So perhaps a Conservative type of living should be advocated by those who are overspending.