How much federal debt is too much for Canada? | About That
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- čas přidán 22. 11. 2023
- Canada's deficit is expected to grow to $1.4 trillion in the next five years. Andrew Chang explains that, while high national debt differs from personal debt, experts say it does come with a price.
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Government debt is NOT a problem IF the debt is used for improving productivity and generating revenues. But Canada's mounting government debt is basically used for public consumption; very few, if any, new revenue generating assets such as highways, subways, sea ports, public housing, hospitals, high value added manufacturing, high tech hubs, etc., have benefited from it.
You get it my man.👍
And so much just given away whenever the PM decides he needs to look good on TV for some pet cause. Not counting when he just wants to make his friends richer.
It actually has quite a lot. We consistently put the money back into education, healthcare, public services, infrastructure, etc.
The biggest reason for the current increase in debt is due to spending and the lowered productivity during the pandemic. Canada is not alone in this.
@@John.F_Kennedy Canada’s labour productivity has slipped relative to peer countries since 2000, NOT since the pandemic, the average Canadian worker would need to work almost 30% more hours to generate the same output as American workers, 25% more hours to match the output of German workers, 15% more hours to keep up with British workers, and 6% more hours to match the output of Australian workers. Canada’s rail, subway, and bus service systems are subpar by international standards for ages. We don’t even have a proper electronic system for patient health records within the same province, let alone within the country. Canada spends a lot of money on education but does not have any strategic focus, the government simply divvy up the money and we end up with a shortage of skilled workers in critical areas of healthcare and in the trades. The government has left the public housing business for at least 30 years. And Canada brought in a million immigrants within a period of two years with absolutely no plan and no attention paid to its impacts on housing.
not a good hedge.. bad business
$46 billion annually is still way too high in debt servicing costs.
Those costs are non negotiable.
Almost $1200 per person just to service the debt
This debt carrying cost is a major contributor to inflation.
@@matthewsemenuk8953 Not true as the debt principal can instead be paid down (or less issued in the first place), thus reducing the annual debt servicing costs. The Treasury could actively be buying back government bonds.
@@JulietMartin2022 Actually, servicing the debt reduces inflation, but issuing the debt of course in the first place increases it.
Imagine all the services that could be had with the interest payment.
Lack of foresight will cost Canada its high standard of living.
It is imagining all inefficient government services that got into debt.
@@very_awake
It already has, GDP per capita and productivity have been declining. I know many people who've left or are leaving Canada
Yeah. One year of the amount we pay in interest could clean up the tent cities from our major metro areas and get those people into homes.
Now that you have had smoke blown up your as by the cbc and it's As Clown
Here is the truth in 60 seconds, look it up
Inflation explained by Nobel Prize Winner - Milton Friedman
Federal government owes or the people of Canada? Oh crap it's the same thing.
The people are not the government, governments come and go.
The debt stays, and taxes are applied to pay for it. This is slavery.
Canadas credit rating comes from the same people that gave sub prime mortgage backed securities AAA ratimgs, they same year it created a global financial crisis.
lol, fantastic way to burst a party bubble.
Like Moodys whose CEO said "our ratings are not intended to be used by anyone for any purpose" during a congressional hearing following the 2008 GFC 😂 😂 😂
Lol people who think govt debt is a good thing have no idea what inflation does to the poor.
You’ll be surprised that a lot of people are just happy with the handouts - $500 here and there. Politicians love exploiting those people.
Argentines, Greeks, Sri Lankan to just name a few know...
Right. Inflation benefits the ultra rich because they are able to spend the currency when it still has value.
@@MasiukA because asset prices have disproportionately benefited from ultra low interest rates and QE
Our income tax system is progressive for a reason. Collecting funds through deficits is not progressive. Like you say, the poor are disproportionately affected by inflation, as the loss of buying power represents a larger percentage of their total wealth compared to those with more wealth. When individuals borrow, they are using existing currency. When the government borrows, it essentially creates new currency. This not only dilutes the value of all currency but also leaves a portion of it in the government's control. They're gathering OUR wealth and they're not gathering it progressively.
Forgetting Provincial debt and Municipal Debt
Absolutely love this show. Put everything in simple and easy to understand terms. Almost would like to have this be its own channel!
They can be after we defunded the Liberal mouth piece CBC 🤷♂️
He’s so articulate
Great idea!
Say goodbye to it and the fifth estate of PP gets in.
You just gobbled up cbc Propaganda from their resident as clown
Here is the truth in 60 seconds, look it up
Inflation explained by Nobel Prize Winner - Milton Friedman
This is like watching an addict try to justify their addiction. It’s disgusting. Pierre is right.
perfectly said
Pierre is woefully misinformed or dangerously fear-baiting to gain support and votes. Do you want to know the truth or trust the career politician? Do you trust facts and evidence if you see it? Well, then you might like "The Deficit Myth: The Biggest Lie in Politics" by 1Dime. Well researched and presented.
Omg I was thinking this exact thing. Watched Pierre’s ‘time bomb’ video directly before this one… like is this a joke?😳😳😳
Pierre is just going to sell off all our resources, utilities, and public infrastructure to American or international asset management banks and we will be forced to pay them billions for decades just to use things that our tax dollars already paid for. He makes a lot of noise about problems but hasn’t showed any actual solutions. Or worse he’ll sell away our fresh water to hedge funds like blackwater
Not mentioning the provincial debts when comparing with other far more centralized nations is borderline intellectually fraudulent. Fact is with its low productivity, almost nonexistent fiscal margin, oversized governments and total public debt (including provinces) this country is heading for trouble very quickly.
Yeah, Ontario is doomed. You can tell the politicians don't even consider the consequences, they just continue spending and hope someone else is in office to point to when it eventually crashes.
I also think that netting assets (such as public pensions) vs debt is misleading. Ontario had that discussion with its AG during the McGuinty/Wynn terms (AG not in favor of netting the teachers' pensions).
Two weeks to flatten the curve.
We're all in this together.
Multiculturalism is strength.
The debt will balance itself.
ca va bien aller
You forget the waters are rising and weather is changing.
When annoying interest turns into problematic interest, that's when you start to really pay down that debt. We need to reshuddle the federal budget and let someone who knows about money back in charge.
lets un elect liberals.
@@nickyalousakis3851 FYI Liberal P. M. Paul Martin was a fiscal Conservative. He was also a businessman. The clowns in power know nothing about business, and the one guy who did, Morneau, they got rid of, he's a current critic of LPoC handling of finances.
@@mikemcmullin149 -- agree.... i really like paul martin. this is the thing.... no one should be voting for the same party all their lives. you change your vote based on what the country needs at the time.... or to punish an inept govt typically. switching votes is the cerebral vote. i have said many times on these forums that here in toronto it's not an intelligent vote. it's a party loyal simpleton vote.
100% agree. The current Liberal party has little to do with Paul Marin's Liberals. It is much further to the left than NDP used to be.
@mikemcmullin149 and that was why before he left office, he actually balanced the budget. We definitely need another Paul Martin. The question now is, does Polieve have that knowledge? He was a lawyer, right?
How much of that is going to imaginary companies , slush funds, offshore accounts and general incompetence?
Good question. We should tighten up the tax laws and empower the CRA to do its job.
Too many scandals to keep track of.
Like those clowns who developed the arrivecan app...what an entertaining question period especially the "Office Space" meme version of it 😂 😂 😂
@@Alex-js5lg Work on closing the "tax gap" and eliminate tax loopholes. If the underground economy keeps growing, there is no way CRA can keep up with its audits. We may have symptoms similar to those which caused Greece's debt crisis. As the population grows (and payments for socia benefits likewise). is our tax base keeping up with this?
Leave it to government funded CBC to speak highly of the government spending from which they benefit
I think it's worth noting that when some "expert" states entirely on theory that "Governments have a forever view of things, they're not going to go out of business" they fail to mention Zimbabwe, the Weimar Republic, Argentina, Turkey or Greece, and the terrible effects their inflation and debt policies had on their people and economies. The "debt is good, actually" argument relies entirely on thought experiment, and not on history or observable results.
canada's debt to gdp is less than the US', what are you yapping about
Hi Mitchel, you have neglected Venice, America, Britain, and the Dutch Republic in your data mining . the "debt is good" argument does not rely on an infinite timeline whatsoever but its telling that you think it does and that you've found a "gotcha" moment to comment about. When you've done the reading, you can tell us all about it but until you actually do, maybe don't try to summarize other people's arguments incorrectly?
@krabzmorningstar6240 we're about to pay around 3X the budget of our military on debt servicing fees annualy, and what do we have to show for that debt? Are Canadians better off? Has it improved cost of living? Has our productivity improved? Or have we taken out a mortgage on the future so politicians can win votes with handouts instead of competently solving systemic problems?
@williamjameshuggins sorry, what is your argument exactly? Is it "telling" that I don't want bloated government spending that achieves little? Is it "telling" that I desire a government that lives within the means of its tax base instead of stealing through inflation to give hand-outs to special interests?
Treat debt like alcohol. It can be useful but incredibly destructive too. The most "telling" thing is the debt advocates who wish to steal the productivity of working Canadians to fulfill their social vision of the nanny/welfare state.
very very well said mitch.
$1.2 Trillion in debt and Trudeau want to spend more? That's insane. We need an electrion. Trudeau needs to go.
You think the debt will go down with the other nope. The only one that paid for the debit was harper.
Or a revelution.
The problem is we are not getting anything from the Liberal reckless spending. Where is all this money going I'm not seeing any benefit, my retired mother sees no benefit,
🇨🇦
🧂
4:18 that's not a reasonable comparison as you omit the provincial debts, which are significant. This is because of the kinds of responsibilities taken by the governments is different. In Canada's case, the provinces take on a large share of healthcare and education spending, which would otherwise be taken up by the federal government. All in all, if we include provincial debt to the federal debt and do the same to the US, the US's debt climbs marginally to USD 25 trillion in 2022 (since has increased to 32 trillion) which is ~110% of GDP, but in Canada's case this debt level rises all the way to CAD 2.1 trillion, which is closer to 95% of Canadian GDP, in other words the gap between the US and Canada in debt load to GDP isn't far apart.
that's exactly why we're "middle of the pack" and not "super responsible" as it appears when you hive off the provinces (that was part of the shell game in the 90s - put the debt on provincial balance sheets to improve the fed gov's credit rating)
@@williamjameshuggins When discussing debt load and debt sustainability every fiscal update we always have to add each provincial and federal deficits together to get the real deficit to GDP figure, and it's an unconvincing argument, especially since the credit ratings of the provinces isn't stellar in comparison to the federal government's.
@@trymex1694 i recommend using the OECD data on general government debt for comparative purposes (unweighted average is 89%, weighted in 121%, we ran 113% - 2022 data). the IMF data the producers cited only considers the fed gov's debt, which as you point out, is not the whole picture.
But wouldn’t you also have to add the debt burden of each state to the total to make this comparison?
@sammavitae114 yes you would, and this would change the total % debt load to GDP, however US states are far less indebted as a % of GDP when compared to Canadian provinces, with California having a ~500 billion USD debt load when compared to, say, Ontario's ~340 billion CAD debt load.
I don't have the exact numbers rn but I'd find it interesting to get total debt loads, I think a comment has a link above I'll update later.
We are spending similar to Iceland’s gdp on maintaining debt, and yet Freeland thinks Canada is not broken. She should change her surname to Lalaland…
Love this guy - he keeps nailing real issues and takes them on from all sides. Quality journalism is a breath of fresh air.
@@user-ec2nn6ht9r Then it's a good thing they posted it - the internet experts can come set the records straight in the comments section.
@@user-ec2nn6ht9r Care to explain how he's wrong? I see you're an armchair expert and got your degree from Google, so let's hear how he's wrong
@@user-ec2nn6ht9r" functioning like a real household budget." I think you might know this and are being purposely disingenuous, but two things can be similar without being the same. It's like saying Liberals and Cons are both Canadian political parties, therefore they are the same, or birds and a dragonfly both have wings so they are both birds/dragonflies.
"A budget is a budget whether {it's} your income or government income." As he explained, a person's budget is not the same as say a corporation or a government, because a) their lifespan b) how your budget can change, i.e., people can't suddenly make more money by increasing the price of your good or increase taxes, but governments and corporations can.
" If you need more money but can't increase your income and just print more money, you have to pay that back to the person that bought the bond, with interest." Any proof that the government is printing more money? Also, governments can increase taxes or cut spending so that right there disproves your point.
"All the while you're creating inflation. Economics 101. Even the BOC says this." No, the BoC does not say this, or otherwise provide the resource.
From the BoC Titled "Understanding the reasons for high inflation" -> "At the beginning of the COVID‑19 pandemic, prices for commodities like oil, natural gas and lumber plummeted. Because the economy was shut down, people had fewer opportunities to eat out or travel, so demand shifted suddenly from services to goods. But pandemic shutdowns also affected important pieces of the global supply chain, such as factories and ports. This meant that supply couldn’t keep up with all the extra demand for goods. As a result, prices surged.
When economies reopened, prices for these commodities spiked suddenly. And because these commodities feed into so many other products and services, the ripple effect on other prices was widespread. Then Russia’s invasion of Ukraine made prices surge even more.
In a nutshell, the following global forces combined to create a perfect storm:
-a spike in commodity prices
-a surge in the global demand for goods
-impaired supply chains"
This is a direct quote. Notice how your reasoning wasn't in there.
From the Australian Bank:
"More jobs and higher wages increase household incomes can lead to a rise in consumer spending, further increasing aggregate demand and the scope for firms to increase the prices of their goods and services. When this happens across a large number of businesses and sectors, this leads to an increase in inflation."
I'd trust a journalist to have done their research more than I would a random internet post. Moreover, I've heard what he's summarizing echoed in discussions with economists in the media and in person. @@user-ec2nn6ht9r
The debt will pay off itself after the budget balances itself. FJT
Previous Conservative PM Stephen Harper accredited to Canada's AAA rating and lowest debt to GDP. 8 years later, under Turdeau we have 1.173 Trillion in debt. 47B annually in interest rate is ludicrous. He's Not Worth The Cost!
According to trudeau,budget will balance itself
I really appreciate Andrew’s tutorials. They provide very useful context to often politically charged topics.
what's the improvements we get from taking on debt?
doesnt that define the true value of it?
No Canadian government shouldn't keep borrowing many and increasing our debts.
Enough is enough.
Andrew Chang is incredible.
Criminal overspending
Why does the CBC feel it necessary to put pressure on the average Canadian for debt that has been incurred by the 1%? I have an idea, if Canada wants to recoup some money why don't we go after these mega corporations who are continually sheltering their massive profits in offshore bank accounts to avoid paying taxes here in Canada?
all that debt for nothing
Excellent information CBC! Every month I pay into RRSP for retirement and TSFA for unintended big future problems. Every year I need to be profitable to keep my household afloat. Canada, I love you...please pay down this debt through transitioning to high insulation and large scale renewables in every region.
Opposition to government deficits goes beyond concerns about interest payments. When governments rely on debt to fund policies, they are essentially redistributing existing wealth to themselves in a non-progressive manner. While income taxes are collected progressively, with the rich paying more than the poor, government debt does not follow this pattern. This is why the poor are disproportionately affected by inflation, as the loss of buying power represents a larger percentage of their total wealth compared to those with more wealth.
The problem is not the quantity, but the quality. Debt is owned by private asset holders, but owed from the public budget. So it is a ‘predominantly’ regressive flow from the poorest to the richest. It is also stimulative, so potentially inflationary, being offset by interest rates that actually amplify the distributive disparity. Yet there is a structural requirement for growing debt. When money is created, through commercial loans, interest immediately begins appreciating on the principle. Except the interest was not created as new money. So we immediately have a monetary deficit as there is never an adequate money supply to repay existing debt. Competition therefore spurs new loans, which creates more debt. With a debt-based currency, loans are required for debt servicing. But then on a substantive level, each dollar created is a claim on future resources. Our true wealth is natural resources which are either finite, or renewable, but regenerate more slowly than capital grows. Existing dollars exceed the stock of energy and materials, making them rather worthless, except for paying debt. So the problem isn’t the quantity of debt, which will never be repaid, it is the system of market-based capital allocation and private ownership of national wealth.
You can gobble up the cbc and it's resident as clown's propaganda using smoke and mirrors
or
Look this up right here
Inflation explained by Nobel Prize Winner - Milton Friedman
If the government was investing in assets that had enduring revenue generating value, the deficits could be justified but they are not. They are simply over spending on their day to day expenses and pet programs to placate the NDP and their base of voters. Counties do go bankrupt when lenders stop buying their debt - think of Greece.
Great insight thanks for the video
There are less than half as many workers now per retiree, than there were when boomers were working (1 retiree for 3.4 workers now compared to 1 retiree for 7.8 workers). Middle class people need to pay higher taxes and receive less services to pay for government debt. That's on top of the 70% of social program spending going to retirees for pensions and Healthcare. Young people are getting railroaded
Young people vote Liberal. You demand this kind of government and we ALL suffer it.
@@darrylwbraun not anymore. Polls show a total collapse in support by millennials
How about irresponsible and incompetent government most young people voted for. After working entire life paying taxes and pension premiums retirees are getting on average $780 a month in pension (CPP). This is below level in most developing and third word countries. In addition most of their life savings are disapearing due to high inflation caused by this government policies.
@@user-xv7cd5oe2n Can you name a single policy that this government did that contributed to "high inflation". If you're going to do the classic Con scream of "Cabon tax" I think you should know that it contributes only 1/5 th of a percent (0.15%) to inflation, i.e., for every $100 you spend it adds to about 20 cents, so you should try again.
Also, can I see some sort of proof or example that developing and third-world countries that have a pension plan are getting more than Canadians are on a monthly basis?
@@darrylwbraun it makes no difference !!! The government is run like a business and basically there only try to figure out how much more they can squeeze out of you regardless of the party leading the pack !!! always been that way and always will be!!!
He makes $80,000 and he's going to have a mortgage? This is Canada bro. Are you a comedian?
Lol we already hold most household debt in G7. AA+ , Freeland always mentions AAA perrfect rating ?
Corporate debt , mortgage debt and consumer debt is way too high. Pressure will blow soon .
Spend more and produce noting = higher inflation = higher interest rate = highere taxes to pay goverment debt = working middle class pays for it all. No, it is Not Okay.
But, but, but, before Covid, we only owed about 500-600 billion... what happened... he said sarcastically.
The best information about Canada’s financial situation I’ve heard in a long long time! In spite of the current Polievre attack ads, I don’t think excessive politician pensions are real issue. Nor the carbon tax. Running a country is complicated. But a “downside scenario” could take Canada down. We need to be more prudent. We need to move toward a no-debt future.
How much is too much? Well, how about 1.173T$ sounds like?
Hey, let's blame the Canadian population instead of internal government issues!
I appreciate the efforts, news stories and Andrews presentation on this channel. The "music" is distracting and makes paying attention difficult. Most of the CBC programs are now inaccessible to me due to the background noise. Can this practice be reassessed?
Great video very well explained
They say in question period, "triple A rating." Did it go down, or is it a different rating system?
Ok CBC and Andrew Chang here are a couple of questions you should answer in a follow up report. Who does the government "borrow" money from? The money that is borrowed, (that puts all tax payers in debt) where does it come from? How did this "money" come to exist? Who creates this money and why is there interest owed on it? The BoC and the US Fed, constantly identify the 2% inflation rate, please explain why the target inflation rate is not pegged at 0%? While you are at it please explain the difference between "inflation" and "CPI" If you want any help with those answers just give me a call!
That money comes mostly from Canadians, about 70-75% of it. they are borrowing your savings and paying you interest on it. there is interest because you want compensation for the use of your funds while they use it instead of you.
the inflation target could be set at several different levels but in 1989 the reserve bank of New Zealand starting working with that number on the premise that low was good but negative was bad (complex reasons, look up "Irving Fisher"), so they picked 2%, which gave them a bit of wiggle room to cut rates before deflation set in. we could have picked 1% or 3%, little difference but 0% was seen as "playing with deflationary fire".
inflation is the average rate at which the purchasing power of currency is decreasing. since that's hard to measure (prices fluctuate), we set up a fairly consistent basket of consumption goods that most households buy every month and we monitor the cost of that. the percent change in the price of that basket is CPI, basically a proxy for inflation that we can get information on.
if you actually want to know more about this stuff, have a look at my channel which is mostly videos from my financial history course. i suggest watching in order 3, 4, and 5 which cover debt, banking, and central banking for more details on this stuff
Your kids can pay right.
Except the birthrate is declining...
@@Alex-js5lgthanks feminism
What wasn’t covered was the loss of the purchasing power because of all the money printing. The money printing has been necessary in order to borrow more money to grow the economy. And the massive printing has caused the raise of inflation resulting in a loss of purchasing power. In short, a government that borrows is a government that fuels the loss of purchasing power. That part was not discussed. Answer: reign in the spending and peg the dollar to something that can’t be printed at will.
It is amazing how CBC put this spin on things when the corporation they work for is subsidized largely by the federal government. Sorry, but governments should be trying to control their out of control spending.
The BOC printed money and bought 450 billion in bonds. If think this is a normal economic system, then you are a fool
the BoC BORROWED that money from Payments Canada (ie, you bank and your savings). they did not print up $450 billion and you can see as much by simply looking of the BoC's balance sheet. I'm guessing you haven't if you believe they did?
Borrowing money for social spending is insane. It only ensures suffering for future generations and austerity. Borrowing for infrastructure like a needed bridge for example is different.
3:34 your analogy is flawed. Sure thing one can borrow 3X of income of debt, but the problem is not how big debt relative to income, the issue is one is actually paying down debt or not, or simply borrowing more than what you would pay.
If you gradually paying down debt, that’s just normal debt. If you borrow money to pay debt, it’s pyramid.
how much were we paying 8 years ago?
A smart person can take on debt and make something out of it. Unfortunately we are stuck with Trudeau and Freeland.
Back in 2008, the Conservative Government ran a budget deficit to stimulate the economy. I remember a lot of people were up and arms because this was perceived as bailout to the automotive industry. In reality, it saved thousands of high paying middle class jobs. It wasn’t a popular decision at the time but a necessity for sure. A few years later, Harper end up balancing the Federal budget.
Prior to 1972 Canada had very little in the way of national debt. During the 1970s however, Pierre Trudeau racked up annual $40+ billion deficits and he did this every year until he resigned. During the late 1980s, to service the ballooning national debt under Trudeau's previous govt, the Conservatives brought in the GST. It was the only way to maintain key social programs without cutting back, as Trudeau's legacy debt was choking tax revenues which should have gone to fund national agencies and programs. In the 1990s Chretien's finance minister Paul Martin made the one and only gov't attempt to actually pay down this debt with very tight budgets for many years. The debt was somewhat getting smaller by the 2000s with fiscally tight budgets. The Harper years saw continued tight fiscal policies, low interest rates, solid economic growth and low inflation. The 2015 election changed everything with the arrival of Justin Trudeau, the son of Pierre Trudeau. This man completely blew out of the water the national debt, with astounding $45-60 billion annual deficits that are still happening to this day. Between 2020 and 2021, when the national debt was $640 billion he actually DOUBLED it in ONE year to the current $1.2 TRILLION mark. This now results in a whopping $45 billion a year just to service the interest payments. By 2028 that will reach $50+ billion per year. Justin Trudeau is by far, the most fiscally irresponsible PM Canada has ever had and is running the country straight into the poorhouse on the installment plan.
Brian Mulroney actually doubled the debt after Pierre Trudeau in 9 years, he also sold off what could have been a very profitable public gas company like the Netherlands has (you should look into how stable having a national gas company makes your economy) in Petro-Canada, which is now 60% owned by foreign investors. It is one of the very few ‘Canadian’ owned gas company. Mulroney also signed nafta which absolutely trashed our export values because we were forced to sell our goods to America for under market value. Doubled the debt, brought in the gst, AND signed a trash trade deal with america, good ol’ conservative in Mulroney
Debt raised a bit but remained pretty stable and actually came down a decent amount (150 billion or so) by the time Chrétien and Paul Martin were done and then Harper came along and raised it by another 200 billion along with doing things like selling the Canadian Wheat Board to the Saudis which has done a tone of damage to the value of our grains for our farmers. I got those numbers from a Fraser institute study, which is very conservative friendly. Also the numbers were adjusted to 2022 dollars so might seem different depending on what you look at
@@Blingdung Between 1997 and 2008, $105 billion of the federal debt was repaid, dropping to $457.6 billion in 2007-08. Between 2008 and 2015, more than $150 billion was added back onto the federal debt, leaving it at $612 billion. According to the 2015 budget, balance had been reached. This balance was maintained through February 2016.
The 2016 budget began the plunge back into debt with a promise of an additional $140 billion in debt through 2023 ($757 billion debt). -From the Canadian Taxpayer Federation website
The national debt doubled in one year during Covid in 2021.
Current national debt under Trudeau Jr. is now $1.3 trillion as of January 14, 2024.
Our Taxes are disgusting, both parents have to work even more than ever and our services are worse than ever. Anything the government touches turns to crap
Very good work, thank you Andrew Chang + team! These explainers are relevant ways to get informed and to understand the issues we face.
explaining why deficits are not something to freak out about
So many things wrong with this video. Our debt is not being paid down and instead we are taking more and more debt every year. This is why inflation happens. Inflation is the result of a increase in the currency supply which is in effect, what happens when you mass borrow money.
How does one person spend more than all previous prime ministers combined
Hopefully would can see more of this
And how do we compare to other G7 countries?
If a neighbour asked you if they could borrow some of your money, you would immediately start thinking as a banker does when they evaluate the creditworthiness of a borrower. Now imagine that in an effort to increase your confidence in being paid back with interest, this neighbour showed you they had machine that printed money and could document they have been in prime working age since 1867. Your neighbour is very similar the government in this example. So what are the implications of this for you as a citizen? An easy one is to realize straight away that the government does not share the same financial constraints as a normal household.
"No plans to reduce the debt service costs in the next 5 years." Red flag. This government should not be allowed to run the economy in the next 5 years.
he calls 20B problematic int? Think of this way.. its 125 Million a day, 5 million per hour 24/7/365 and its going up all the time due to debt renewal in this higher rate environment, the 46b per is forecast to riise to 62b by 2027
Well you're not alone, Britain is up to its eyeballs in debt too.
Canada uses Newcomers to pay pensions of old Europeans through tax
I hate to disagree but when has a house cost $240k, as of last month the average price of a house was $656k in Canada and the average wage of a full time worker is $59k as of 2022....so that mortgage is about 11x more than your salary.....
Didn’t our rating drop from AAA to AA+ in 2020? Odd it wasn’t called out
Canada needs to change liberals and ndp costly coalition
Very interesting
Very misleading for so many reasons I don’t even want to bother explaining. Just remember, when you’re standing in a bucket you can’t lift yourself up by the handle.
Good explanation
What he also doesn’t factor in is productivity levels and economic growth
Both Canada gdp per capita and productivity is decreasing per capita, almost every single state in America is more productive than most of our if not all of our provinces
Combine that with higher interest rates it’s not as rosy as he makes its sound
GDP per capita*. It just looks better leaving a word out on their statistics
you guys know you can look those numbers up right? GDP per capita is up over the past 5 years (and 10 years for that matter) as is productivity over the same time frame.
there is no attempt to conceal anything from anyone - all the data is public and audited.
The only way we can keep this debt is the GDP needs to constantly grow in a finite world. Eventually we will not be able to grow once all the resources are used up. This is one area that economist has not looked at. Once we stop growing it will all collapse on its self. I studied economics and this economist is not telling us the whole story. He is half right but he is not stating the other side. Ask yourself why we have such high immigration? To keep GDP up. I am shocked economist are not explaining this.
A liberal shill CBC hand picked to plead more liberal lies 🤷♂️
we did talk about that, but its on the cutting room floor. they interviewed me for about 20 minutes and used 60 seconds to keep the narrative tight (within 10 mins). c'est la vie
William you should know better agreeing on interview with CBC.
Well William I am glad you understand this. Many economist do not understand what could be heading our way. I wish this was better explained how this works.
@@user-xv7cd5oe2n i don't consider it a problem, just a constraint of the format.
if you want a lot of detail and nuance, its going to take longer than 10 minutes. the short-short version is that we've had low productivity growth relative to the americans for over a generation now. if we can turn that around for the next 20 years we'll get some much needed wiggle room (its tough to do, but we're not flying blind)
250k? Try 1 M
Gov Canada has been running a war time economy and giving window guidance to the bank of Canada. There's no way I'm fighting for a country that prevented homeownership for me.
Don't worry everyone, Trudeau says the budget will balance itself. Let's follow Quebec and keep supporting him like a bunch of 18 year olds who are completely clueless.
Canada's debt is way out of control, leading to inflation, higher taxes, cuts to social problems, etc., etc.
I'm from Argentina, debt is better than printing money... But... If you default your debt like Argentina your country falls of a cliff with hyperinflation.
Deficit is not a loss. It’s an investment in Canada and its economy. People need to get that through their thick heads.
How is a debt a « technology »? And also, money « evaporating », to the tune of 54 billion, cannot be good. Not for me, not for the government.
Who are we getting the money from ?
Budgets balance themselves...much like the original Trudeau, it will take 20 years after he leaves to bring it back under control.
Shocker we arent the same as a household .
It only hurts when they, whoever we owe, comes to collect. It will happen, and Canada will not be happy about how that affects the country. It is about choice, you don't get a lot of choice when you are in debt. In 1995 the government was forced to gut the health care system to reduce the debt. What will we lose in 5, 10 years?
Do politicians run their own finances like this? You can not be financially secure on borrowed money.
RIP Canada!
The four biggest problems with Canada, Top heavy bureaucracy, health care cost abuse, high interest rates on the debt and reconciliation that seems to have no end. This has to be addressed by responsible people, not bureaucrats throwing tax payers money at the problem.
Defund the CBC and give the money back to small business. We will all be much better
Are we borrowing to stimulate the economy or just to “spread the ‘wealth’”? How is promising all these social programs (safe supply, dental care, pharma care, CTB) that are being funded by debt sustainable? It’s pretty disingenuous for the Federal Government to mislead the public. Also, the sticker price of goods in 1981 cannot be compared to 2023’s. Although significantly higher, the Revenue to Debt Ratio 40 yrs ago is significantly lower in dollar value compared to today even after inflation.
Those benefits you mentioned are an integral part of having a healthy, harmonious society. If they can't be paid for by the current budget, then more money needs to be clawed back from wealthy corporations/individuals. Allowing the upper echelons of society to hoard resources and live in luxury while huge swaths of society struggle to obtain basic necessities is what leads to violent revolution.
Well it reduces income inequality and brings more money to Canadians to stimulate the economy
@@Alex-js5lgReally? For who? Canada is broken with these liberals and the ridiculous budgets. If taxes dont go up to pay for these programs we cant afford them? Can you in your personal budget spend 50% more a month than you make? No you cant! Government is the same, manageable debt is fine but the liberals have doubled our debt, increased taxes and look at Canada now a banana republic! Wake up!
@@dantedavis4679Free money? Are you clueless? Free money from the government gets its money from taxes? The more free money you want taxes go up and is bad for everyone. Sad people like you cant understand how economics work other than government hand outs
@@Alex-js5lgor run the government more efficiently and waste less money in order to fund all those programs..
The money we are paying on the debt is a subsidy of sorts to the banks and other lenders. Isn't the Lieberal government generous with our money?
and how much did they spend on chmpagne flutes, hotels, and posh getaways for themselves this fiscal year?
Governments go out of business. Take a look at history.
240k for a morgage? To buy what an RV?
looks like cbc is trying to say that everything is fine and trudeau is good?
Who is Canada indebted to?????? That never seems to be explained when cover the national debt.
Joe Biden
The chinese
Just out of curiosity, how much does public pension, OAS, CCP, child benefits and welfare cost the entire nation per year - combined?
Most people do not realize that GDP includes government spending... the GDP number is boosted when governments spend, even deficit spending which is all Canada does. We ARE in trouble folks, do not be fooled by number spinning.