The current approach of deficit spending is unsustainable. High debt loads, both sovereign and personal, become dangerous when an economic downturn occurs. According to a report by the Fraser Institute, upon completing his term in 2019, Justin Trudeau is projected to be the largest accumulator of federal debt per person. Per-person debt will increase by 5.2% to $32,589.
Deficit spending since 2015 has not delivered on the foundational change that will ensure a better Canada for tomorrow. Our GDP grew by just 0.1% in the fourth quarter of 2018, the worst quarterly performance in two and a half years. Housing fell by an annualized 14.7%, the biggest drop since 2009. The most alarming – business investment fell to an annualized 10.9% — the third straight quarterly decline.
Most experts expect an economic slowdown in the coming year. The current Liberal deficits are due to high spending at a time when national revenues have actually increased. That means Canada’s deficits will balloon further when revenue drops due to the coming downturn. Continuing on this path will jeopardize Canadian society’s ability to support vital programs and critical infrastructure, make interest payments and bring down the national debt.
I encourage you to click through the links below to see what I have been doing as the Member of Parliament to ensure this important federal priority is heard in the riding and in Ottawa.
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