Trudeau Plan To Raise Canada's Deficit

[Economy 52,842]

https://www.bnnbloomberg.ca/trudeau-doubles-down-on-deficit-spending-in-bid-to-retain-power-1.1323723

 

Liberal Leader Justin Trudeau promisses that if re-elected he will raise deficit to $27 Billion in order to make investments to economy

 

the 2 main opposition parties the Conservatives and the Left Wing NDP fire back criticizing that Trudeau is spending too much and that everytime he makes deficit plans he ends up spending and raising deficit even more than planned as was the case this last election

 

Still, if the $27 Billion target is not overshot, that still keeps the deficit little over 1% of GDP and would hardly affect the Debt to GDP Ratio as the economy grows

 

Experts and critics still say even if the increased deficit is still low, we should be focusing on lowering debt ratio so when next downturn comes we have plenty of fiscal room

 

Given many of the larger Provinces (Especially Ontario and Quebec) have very high debt levels still, the Federal Government may have to do all the work fiscal stimulus should a recession hit and would therefore he prudent to get the Debt to GDP ratio (currently at 31%) as low as possible 

 

Supporters of deficit spending however point to Canada having one of the lowest debt burdens in the world and therefore we should focus on long term investments rather than finances that are currently in exellent shape

[Petie Estie 5,704]

raising to 27 billion....lol. I know Canada's economy is smaller than the US, but damn. That sounds like nothing

[Economy 52,842]

15 minutes ago, SEANGT said:

raising to 27 billion....lol. I know Canada's economy is smaller than the US, but damn. That sounds like nothing

Even for Canadas size its relatively small at just over 1% of GDP

 

in proportion thats like the US having a deficit of $270 Billion

 

i know compared to the US thats tiny but Canada is still #10 largest economy in the world put of almost 200 Countries so were really not that small. USA and China just have huge dam ass economies 

[RemovedPerRequest1 124]

1 hour ago, Economy said:

huge dam ass 

Sounds hot. 

 

But seriously, go Canada !! We got this! 

[Economy 52,842]

14 minutes ago, JSwystun said:

Sounds hot. 

 

But seriously, go Canada !! We got this! 

Honestly tho im kind of against this

 

while Canada may have low debt now, getting more and more loose with deficits is the first step to going into a bad path

 

If we dont try to balance the budget during good economic times, we will never get the debt down enough to compensate for high deficits during bad times

 

A deficit of $27 Billion or about 1.2% of GDP means at best the Debt to GDP ratio stays the same but it wont go down. We need to let it go down so we can have financial room during the bad times

 

Another factor is that Trudeau last time said deficits of no more than $10 Billion annually and only for 4 years then a balanced budget...

 

if he ended up going back on his plans and ended up running higher and longer deficits (and there was no recession or natural disaster to justify changing those plans), how do we know he’d actually stick to his target this time???

[Fish 6,259]

If you look historically, the conservatives are responsible for most of the Canadian deficit. I'd be more worried about this regressive, double face Scheer candidate if I were you.

[Economy 52,842]

2 hours ago, Fish said:

If you look historically, the conservatives are responsible for most of the Canadian deficit. I'd be more worried about this regressive, double face Scheer candidate if I were you.

Well the Conservatives did remain in Surplus up until the 2008/2009 recession and had the budget nearly balanced again before Trudeau took over

 

Also In Ontario it was the Liberals who destroyed our finances

 

So more recent History says otherwise. And at the end of the day its not just the party and where in the right vs left in the spectrum they are. It also depends on whos in charge at the time and what their goals at present is

 

Trudeau ended up running deficits 2.5X larger than he said in last election and now hes proposing raising them more

 

im not sure why ur making this about Sheer when clearly Trudeau has made it clear a balanced budget isnt his priority

 

The original $10 Billion deficits he proposed for only 4 years last time were fine. That $40 Billion debt added over a 4 year span is a very small and trivial amount of money on the grand scheme of things with Canadas over $2Trillion economy

 

But the deficits that may be small for now keep increasing under Trudeau, he keeps raising his deficit targets and now hes eliminated a goal date to get back to balance all together

 

that to me is concerning long term. 

 

Canada did not run 18 years of budget surpluses and pay down debt just to start getting into a path that further down the line has us there all over again