Monday, July 20, 2009

Why pay down the debt ?

The return to deficit spending, by the federal just about every provincial government in Canada, means the debt will get bigger.

As shown on www.Debtclock.ca, a website launched by the Canadian Taxpayers Federation, the federal government is borrowing money at a rate of $1,585 every second, $95,129 every minute, $5.7 million per hour, or just under $137 million every day of every week of every month for the whole of this year.

The revenue the government uses to spend doesn't grow on a money tree in the office of the minister of finance. It comes from taxation. If we care about future generations and the tax burden this debt is creating for them, we can get spending under control.

I can think of three reasons why we might want to lower the debt. Please add any you can think of in the comments section.

1. So future governments can spend savings from lower interest payments to cut taxes.
2. Young people should not be saddled with a financial burden they didn't create.
3. Once the baby boom generation retires, we won't have enough people around to pay the taxes to support the health care system or pay for the debt we've created.

So, we can try to ride the gravy train until we die, or we can vote for politicians who will cut wasteful program spending, cut taxes, and reduce the debt. The choice is ours.

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