The federal government plans to spend nearly 24 percent less per person over the next six years. The trouble is, restraining direct federal expenses doesn’t get you very far to balancing the budget. Trimming benefits to high-income seniors, however, would.
Federal debt that grows faster than the economy is not sustainable. If next week’s fiscal update shows that, then alarm bells should ring. The longer we delay, the larger and more difficult our fiscal challenges will become.
Whatever you think of the carbon tax as a policy, it’s days may be numbered. The same government that introduced it delivered the potentially fatal blow.
There is a stark difference between older households, who saw their disposable incomes rise sharply, and younger ones, who have seen their disposable incomes drop.
Rather than providing a wide range of possible considerations, Alberta’s pension plan campaign offers only a single piece of analysis that significantly overstates the potential benefits of a separate provincial plan.
It’s hard to see the government’s food price plan as anything but a cynical move to mislead Canadians, cast blame on a politically unpopular group, and eventually claim credit for improvements that are beyond their control.
If the Bank of Canada can successfully and sustainably return to normal rates of inflation soon, then its credibility may improve and bargaining may become easier. But if it cannot, then turbulent times for both employers and workers alike may be ahead.
Fitch expects the government deficit in the U.S. to reach 6.3 percent of GDP this year. Such public borrowing—especially during a period of strong economic performance—is not sustainable. And long-term projections paint an even bleaker picture.
Confidence in the rules laid down by governments is essential for all long-term decisions. The global economy is volatile enough. Politicians in Canada shouldn’t make matters worse.
The recent return of inflation closer to its two percent target simply means prices are rising at a more normal pace, not that affordability has improved—these challenges are going to persist for many years to come.
