The crunch approaches

Government spending has increased and the future looks expensive.

In figures for government budgeting for the fiscal year to date, the PBO shows health care allocations up by $1.6 billion. That transfer will continue to increase at a six-per-cent clip every year for at least the next four years if the government sticks to its election promises.

Servicing charges on the public debt have also jumped $1.4 billion from the same period a year earlier because higher deficits are more than offsetting the benefits of low interest rates. Those costs, too, will continue to grow as long as the government keeps adding to its debt. And old-age security payments rose $1.1 billion from last year — partly because of a growing number of beneficiaries and partly because the benefit has been enriched.

Kevin Page questions the government’s fiscal plans going forward. Of course, the Conservatives are openly dismissive of Mr. Page at this point.

On health care, the government has apparently considered a transfer formula based on age.




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The crunch approaches

  1. Our two largest provinces rank rather low when it comes to producing wealth, why should we worry? It is all good, communist economics don’t work anywhere else but will be magically effective in Canada, apparently. 

    Governments costs won’t be under control until they start taking on unions. Unions are sociopathic – they constantly take for their members and don’t care about common welfare of all Canadians – that’s why our public spending is constantly rising even while Government lay off employees. 

    Taxpayers are being constantly fleeced for more and more $$$ even tho we are getting fewer services in return and inequalities are increasing. 

    NatPost ~ Nov 2011:

    Ontario gets by on hard work, rather than innovation, according to a new report that says Ontario’s economic stature continues to slip within North America ….

    However, Ontario ranks 15th of 16 North American jurisdictions when it comes to 2010 GDP per capita, at $46,500. New York tops that list at $71,200, followed by Massachusetts, New Jersey, Virginia and California. Quebec is last on the list and is the only state/province to fare worse than Ontario.

    PJ O’Rourke ~ Economics is not zero sum. There is no fixed amount of wealth. That is, if you have too many slices of pizza, I don’t have to eat the box. Your money does not cause my poverty. Refusal to believe this is at the bottom of most bad economic thinking.

    True, at any given moment, there is only so much wealth to go around. But wealth is based on productivity. Without productivity, there wouldn’t be any economics, or any economic thinking, good or bad, or any pizza, or anything else. We would sit around and stare at rocks, and maybe later have some for dinner.

    • Some well-being has to do with distribution of wealth. For a given GDP/capita, societies with more equal incomes tend to be happier than those with less equal incomes. 

  2. Good old Flaherty.  He never met a budget he couldn’t wash in red ink.

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