Canadian ‘debt’ propaganda is based on myth
The April 20 Examiner had a large colour photo on A3. It showed Franco Terrazzano, federal director of The Canadian Taxpayers Federation, standing beside a trailer that displayed a national “debt clock.” It indicated that the federal “debt” had clicked past $1.163 trillion.
Terrazzano, and unfortunately, many others, think that is a bad thing. I think it is wonderful. Why is it wonderful?
That number represents what Canada has spent into the Canadian economy since Confederation and did not tax back. It sits as assets in the accounts of our pensions and businesses and has paid for many other good things like the national railway, the Trans-Canada Highway, national parks, the St. Lawrence Seaway, the First and Second World Wars, etc. None of that “debt” was borrowed like yours and mine. Nor are they like provincial and municipal debts.
Canada is a sovereign currencyissuing nation. That means Parliament approves a budget and then the Bank of Canada marks up the government accounts accordingly. If you would like to see how that works, watch a YouTube video featuring Warren Mosler who wrote a book called “The Seven Deadly Innocent Frauds of Economic Policy.” You can buy the book or read it for free on his website. Also, search YouTube for Stephanie Kelton who wrote the bestselling book “The Deficit Myth,” or read her book.
Canada’s first governor of the
Bank of Canada, Graham Towers, was asked by MPs in February of 1942 if the wartime “debt” was a private-sector asset. He readily agreed that it was.
In the photo, Terrazzano is pointing at the average Canadian taxpayer’s share of the “debt.” The number seems to be $30,201.56. That means taxpayers collectively own that amount as an asset in the above mentioned things, plus our national airports, federal contributions to electricity production, the Trent Canal system, National Research Council, Canada Post, Canada Pension Plan, health care, daycare, universities and much more. Seems like one helluva good deal.
Terrazzano’s campaign and Pierre Poilievre’s leadership ideas are based on myths. Like many myths, they don’t stand up under scrutiny. They weaponize the socalled “debt” and “deficit” for partisan political purposes.
Herb Wiseman, Village Crescent