IMF Critisizes Canada For Being Cheap

[Economy 52,844]

http://www.macleans.ca/economy/economica--lysis/why-joe-oliver-is-condemning-canada-to-economic-mediocrity/

 

Canada was the lastest Country to be under fire from the IMF for not spending enough to promote economic growth. The IMF has criticised a number of other Countries in the past for the same thing particularly Germany

 

In Canadas newest 2015 budget, it depicts a small budget surplus of $1.4 Billion. It includes tax cuts for small businesses, increased child benefit payments, increased Tax-Free Savings Account Contribution limits, and a small increase in infrastructure spending

 

Spending on most other programs including healthcare, education and military was virtually frozen. The Conservatives blame the hit to revenue by low oil prices for the necessairy freezes in spending

 

Like Germany, Canada has low borrowing costs and an even lower debt-GDP ratio at just over 30%. The IMF says Countries like Canada, Germany, Australia and Scandinavia with good finances should take advantage of low rates to increase spending to boost economic growth saying now in the aftermath of the financial crisis isnt the time for Austerity

[Klou 2,414]

Other countries will gladly take donations tbh

[Supersonic 49,376]

Other countries will gladly take donations tbh

​Don't bother even those countries, especially Germany, are HIGHLY in debt, they are just considered wealthy because they are forecasted to be very likely to pack their dues. That's why Germany is refusing to even think about spending more money than needed, the government plans to reduce the general debt as of 2020.

[Economy 52,844]

Other countries will gladly take donations tbh

Lmao, if the Conservatives are squeezing every last penny to try and force a budget surplus for election year (because they promised 6 years ago they would balance the budget by 2015 and before following election if elected)...

 

they are so cheap right now they will hardly open the wallets for anything, only a few family benefits increased basically. They certanly wouldnt "donate" lol

[Economy 52,844]

​Don't bother even those countries, especially Germany, are HIGHLY in debt, they are just considered wealthy because they are forecasted to be very likely to pack their dues. That's why Germany is refusing to even think about spending more money than needed, the government plans to reduce the general debt as of 2020.

Germanys debt to GDP ratio is like 60%. Thats not that high by international standards. Half the developed world is at 90% or more. An alarming high number surpassed 100% (meaning they owe more than their entire annual economic output)

 

Japans debt is at 230% of GDP  

trust me, Germamy isnt that bad

 

Now Canada is even better at 30% or so. Australia for example is even lower at 25% or something like that. But Germanies isnt high

 

And just for FYI Canada has Provincial debt problems (half of Canadas debt is Provincial) so if you include that in the figures of over-all Government debt, our figures arent as rosy. The IMF seems to forget "Federal Governments" are just 1 level of Government  

[Supersonic 49,376]

Germanys debt to GDP ratio is like 60%. Thats not that high by international standards. Half the developed world is at 90% or more. An alarming high number surpassed 100% (meaning they owe more than their entire annual economic output)

 

Japans debt is at 230% of GDP  

trust me, Germamy isnt that bad

 

Now Canada is even better at 30% or so. Australia for example is even lower at 25% or something like that. But Germanies isnt high

 

And just for FYI Canada has Provincial debt problems (half of Canadas debt is Provincial) so if you include that in the figures of over-all Government debt, our figures arent as rosy. The IMF seems to forget "Federal Governments" are just 1 level of Government  

​What I am trying to say is that the German government doesn't really give a damn about GDP to debt ratios, the fact that we are 2,155,000,000,000€ (or US$2,314,039,000,000) in debt is still scary. That's like 2000 billion cheeseburgers. When people say that only being that "little" in debt it feels like somebody saying "You got leukemia? Well look at that poor little guy over there in the corner. He's got a brain tumor, just had a stroke and got castrated as a child. You're like healthy compared to him."

[Economy 52,844]

​What I am trying to say is that the German government doesn't really give a damn about GDP to debt ratios, the fact that we are 2,155,000,000,000€ (or US$2,314,039,000,000) in debt is still scary. That's like 2000 billion cheeseburgers. When people say that only being that "little" in debt it feels like somebody saying "You got leukemia? Well look at that poor little guy over there in the corner. He's got a brain tumor, just had a stroke and got castrated as a child. You're like healthy compared to him."

Ok but u HAVE to look at ratios not total numbers. Whats a lot for one isnt a lot for another

 

For instance Norway is a rich wealthy Nation but has only 5 million ppl so their economy is not even worth $1trillion. If they have even 1/5 of the debt the USA has they would default and go into a total financial meltdown... But for the USA with 320 million ppl and a much larger economy and budget they can handle a lot more debt before becoming a problem (and yes its a problem)

 

So total numbers are irrelevant. U gotta look at it in a proportional basis

 

Anything above 60% of GDP by many economists and experts is considered dangerous and high. So Germany would be borderline by those standards

[Supersonic 49,376]

Ok but u HAVE to look at ratios not total numbers. Whats a lot for one isnt a lot for another

 

For instance Norway is a rich wealthy Nation but has only 5 million ppl so their economy is not even worth $1trillion. If they have even 1/5 of the debt the USA has they would default and go into a total financial meltdown... But for the USA with 320 million ppl and a much larger economy and budget they can handle a lot more debt before becoming a problem (and yes its a problem)

 

So total numbers are irrelevant. U gotta look at it in a proportional basis

 

Anything above 60% of GDP by many economists and experts is considered dangerous and high. So Germany would be borderline by those standards

​As of 2013, Germany is at 78% though.

[Economy 52,844]

​As of 2013, Germany is at 78% though.

Is that National debt? Cuz theres many different types of measures:

 

-national debt

- public debt

- net debt

- external debt

 

different types of debt are used to assess a Countries situation in specific circumstances.

 

For instance if ur looking at future liabilities like retirement payments etc ull look at public debt

 

if ur talking about impact debt might have on currency, ud look at  external debt (debt owned by foreigners outside ur nation) as well as net debt (debt you owe in relation to what others owe you, or debt in relation to assets you possess)

 

That can confuse people cause the numbers will vary depending on what ur talkig about. I was talking about "National debt" which is total debt owned by a Nations Fedetal Government. That debt is at 60% if im not mistaken

 

 

[Supersonic 49,376]

Is that National debt? Cuz theres many different types of measures:

 

-national debt

- public debt

- net debt

- external debt

 

different types of debt are used to assess a Countries situation in specific circumstances.

 

For instance if ur looking at future liabilities like retirement payments etc ull look at public debt

 

if ur talking about impact debt might have on currency, ud look at  external debt (debt owned by foreigners outside ur nation) as well as net debt (debt you owe in relation to what others owe you, or debt in relation to assets to possess)

 

That can confuse people cause the numbers will vary depending on what ur talkig about. I was talking about "National debt" which is total debt owned by a Nations Fedetal Government. That debt is at 60% if im not mistaken

 

 

​Yes, I googled it. The national debt of Germany is at 78% right now. They even have a pretty graph (and comparisons to other European countries like France and the UK)

[Economy 52,844]

​Yes, I googled it. The national debt of Germany is at 78% right now. They even have a pretty graph (and comparisons to other European countries like France and the UK)

Oh ok. Then perhaps 60% was actually one of the other measures then

 

i distinctly remember reading about Germanies 60% of GDP debt. So perhaps it wasnt National Debt they were talking about

[Miker 5,683]

Canada balanced the budget at the expense of taking it from the contingency fund which is usually around 4B. With the election upcoming this is a political budget not a true budget balance since I don't think that 1.4B surplus will go very far before it is spent.

How did the potential banking job turn out @Economy?

[Luc 4,776]

Oh ok. Then perhaps 60% was actually one of the other measures then

 

i distinctly remember reading about Germanies 60% of GDP debt. So perhaps it wasnt National Debt they were talking about

​Germany's government debt is 60%.

 

Canada could lower taxes by a bit, would make the government very popular

In my country even the conservatives don't want to cut any further, eventhough the deficit is 2,3%  I want my country to higher taxes by a bit, and in the future they should try not to have a debt..

[Economy 52,844]

​Germany's government debt is 60%.

 

Canada could lower taxes by a bit, would make the government very popular

In my country even the conservatives don't want to cut any further, eventhough the deficit is 2,3%  I want my country to higher taxes by a bit, and in the future they should try not to have a debt..

That is what they did. They cut taxes for small businesses, increased contribution limits to tax-free savings account (which is like antax cut, introduced income splitting for couples with kids (also a form of tax cut).

 

There was also increased tax credits for each child by $60/month to a total of $260/month for those  6 and under and $160 for those 7-17

 

but they froze spending on all sorts of programs and thats what IMF doesnt agree with.

 

But Canadas Government is right-winged... The hit to the budget by low oil prices was obviously gonna be dealt with by restraining spending not increasing taxes  

[Gagaloo911 12,959]

Fvck the IMF and its neoliberalism practices that impoverish third world countries and basically hold a gun to their heads to allow foreign "investment" into their country so the crony capitalists can make more money at the expense of these countries' peoples and forcing them into cheap labor while stealing their resources for cheap a$$ products and first world consumers