When Brian Mulroney became Prime Minister in 1984 and a Progressive Conservative government was formed, we held great hope that some semblance of fiscal responsibility would follow.
It appears we were wrong.
According to figures from the Organization for Economic Co-operation and Development, Canada has the third highest level of debt among the seven major industrial countries in proportionate terms. Only Italy and the United Kingdom have a higher ratio of debt to gdp.
Canada has — by far — the fastest growing debt load of any major industrial country. Three years ago, Canada had one of the lowest ratios of debt to gdp when only France and Germany had a lower debt to gdp. In 1987, this ratio for Canada will be nearly 50% higher than for all other major industrial countries except for Italy.
Reflecting upon those figures, the Canadian Investment Dealers Association says the rapid accumulation of net public debt by Canadian government in recent years indicates the large scale, persistent deficit financing by both federal and provincial governments.
That can’t continue. It’s not simply a matter of Canadians eventually expressing their dissatisfaction in such a situation. The simple fact is that eventually, the piper must be paid. Deficit spending cannot continue at such a rate.
When John Crosbie offered “short-term pain for long-term gain,” as finance minister in Joe Clark’s short-lived government, the opposition sneered. Crosbie’s policy was probably the wisest, but both the Liberal party and the New Democratic Party have built what support they have on a policy of unbridled spending with little concern for the effect on future generations. Now, it seems, the Progressive Conservative party has fallen into the same trap.
It leaves voters with little from which to choose.
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