Canada Facing Largest Deficit In Developed World

[Economy 52,919]

https://www.bnnbloomberg.ca/justin-trudeau-s-gaping-deficit-begins-new-era-of-debt-for-canada-1.1462135

 

Canada is facing a deficit of 14% of GDP ($300 Billion) the largest in the developed world

 

Canada recently lost the top Triple AAA rating which only a handful of Nations in the world have over the size of deficits in addition to a more lax take on finances in recent years

 

Edit: The Governments own official estimates just got revised up to 16% of GDP or $343 Billion

[Economy 52,919]

@Maleficent @OBEY @Teal Ambition @juicyjuicy @JustinTrudeau

 

14% of GDP in one year. That's absolutely massive 

[brownie 5]

Isn't the U.S. deficit like literal trillions? How is 300 billion the top? 

[GregJA 5,556]

This is what happens when we have a leader who thinks he’s Oprah 

[junglejim4322 95]

Well, at least Canada provided emergency income for students + people who lost their jobs. The deficit would have been way worse without it.

[GagaSine 7,464]

So should I move to the Netherlands or not lol 

I have an EU & a Canadian passport, I was going to move to Europe but then corona happened... I thought I should stay in Canada indefinitely but now idk...

i don’t have any investments or skills so I guess it doesn’t matter lol

[March34th 1,973]

5 minutes ago, dopemonsterkid said:

Well, at least Canada provided emergency income for students + people who lost their jobs. The deficit would have been way worse without it.

the emergency fund was only good to an extent. it didn't include people who made less than i believe it was 6k in the last year, so people like me who have had trouble with jobs or income didn't qualify.

while i believe it was great for the government to do this because we are in housing and job crises across the country, it should have applied to all adult canadians, not just the middle class or well off people. so many were left below the water when this hit.

[Gabe 2,619]

9 minutes ago, dopemonsterkid said:

Well, at least Canada provided emergency income for students + people who lost their jobs. The deficit would have been way worse without it.

And thats why im not too upset. 

It will be fixed over time when the moment is right. 

[gabeoz 7,915]

13 minutes ago, brownie said:

Isn't the U.S. deficit like literal trillions? How is 300 billion the top? 

% of GDP not total amounts. Deficit is yearly losses, US deficit is ~$1T (it will be much higher this year for obvious reasons) with a GDP of ~$22T which is just under 5%

[Maleficent 6]

Let’s not forget: we elected a man who said “the budget will balance itself” 

[Blastertoyo 22,734]

1 minute ago, Maleficent said:

Let’s not forget: we elected a man who said “the budget will balance itself” 

And cuz he is “hot” 

[steven 6,547]

1 hour ago, Blastertoyo said:

And cuz he is “hot” 

Sadly yes 

[Economy 52,919]

1 hour ago, brownie said:

Isn't the U.S. deficit like literal trillions? How is 300 billion the top? 

Largest as share of economy. 

 

Debt and deficits relative to GDP is what economists usually measure by and consider relevant.

 

Comparing total numbers is irrelevant because a Country like Iceland with 300K people vs USA with 330M ppl would be impossible to compare in anyway that gives any real context

[Economy 52,919]

2 hours ago, dopemonsterkid said:

Well, at least Canada provided emergency income for students + people who lost their jobs. The deficit would have been way worse without it.

The deficit wouldn't be worse without it. The economy would tho

[Economy 52,919]

2 hours ago, Gabe said:

And thats why im not too upset. 

It will be fixed over time when the moment is right.

That will remain to be seen. The Government was gradually getting more and more lax with financial goals for years before the pandemic hit

 

If you can't balance the budget when unemployment is at a 40 year low you never will

 

Canada is only as fiscally strong as it is because between 1996 until 2007 ,(before the great recession) a lot of emphasis was put on getting finances back in order

 

But that has largely been abandoned