Huge government debts mean Canada is robbing its kids
Submitted to Canada's debt
The author asks if 'it is ethical for governments to increase spending by placing debts on future generations?' He raises concerns about the increasing intergenerational inequity based on massive borrowing, sharing these alarming statistics:
- The 'debt burden' per child aged 0-14 now totals US$279,000, seventh highest when compared to forty other nations
- Government spending on Canadians over sixty-five grew 4.2 times faster than spending on those under the age of forty-five
- In a study measuring intergenerational justice, Canada placed 25th our of twenty-nine countries
He further recommends that Canadian governments enact four key policies:
- Match consumption with debt payment
- Set aside a portion of revenues from non-renewable resources
- Borrow to invest in productive infrastructure
- Apply generational accounting
Massive borrowing based on low interest rates is unsustainable. Now as economic forces push interest rates upward, it may be time to reverse government spending.
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Link to article here.