Trudeau plans sweeping freebies to boost indebtedness
(www.reuters.com)
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I could increase my debt level year after year and seem better off until I max out my credit and have to reap what was sown. There isn't a defined line in any economic metric where all of a sudden you went too far, but we are pushing into the bad territory. Look at every country in recent history that has overspent. Are they doing well?
Additionally is everyone better off?
I voted for Trudeau in 2015. How is 'society better off than a decade ago'?
I feel that the fact that it is now impossible for anyone but the rich to buy homes because our housing market is now a ponzi casino is a very serious problem. Two generations, Millennials and Gen Z are completely screwed. This started the same time Trudeau got in and opened the flood gates to mass immigration in a way Canada has never experienced before. Canadians of all skin colours and backgrounds are having their opportunities and bloodrights as citizens trampled on by Woke religious zealot politicians addicted to feeling like compassionate saviors. I'm fine with immigration, I always have been... but ridiculous, 'there are only good consequences because it is compassionate' sanctimonious platitudes are not reflecting the reality at all. We've been turned into Casino Canada.
Government debt is very much like personal debt. If the economy expands, debt can expand too and keep the debt to GDP ratio at a reasonable level. Similarly, if my income increases I can I increase my aggregate debt and keep my debt to income constant. As long as interest rates and risk profile remain the same then debt servicing cost will stay manageable.
What is more important is what you are spending the borrowed money on. If I buy a house then it will become and asset as principal is paid and I wont have to rent and can be healthy debt. If I borrow money and spend it on video games, Doritos and Pepsi, that is not healthy debt. If a government borrows and spends on, say, useful infrastructure with long term benefit - that's good and becomes a long term asset. Trudeau is buying the government version of Doritos and video games. Throwing money at special interest groups, many of which are offshore.
Also, he borrowed and spent during economic expansion and ate up future fiscal buffer. When things went south, he borrowed more and spent more (generally viewed as necessary) but had already been borrowing and spending like a retard pushing Canada's debt into absurdity.