Quote:
Originally Posted by eternallyme
Ontario has more debt than Quebec, and Quebec is on pace to balance the budget in the next 2-3 years. Ontario is in an enormous structural deficit with no end in sight.
Right now Ontario's deficit is higher than every other government - federal and provincial - in Canada, COMBINED. If interest rates increase substantially - and they might, especially if the rest of Canada is very strong - the debt issue becomes the biggest crisis in provincial history.
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More debt than Quebec is a useless indicator as Ontario has a much larger economy and a much larger population. A millionaire with $100k of debt is nowhere as bad as a middle class person with $100k of debt. The real apples to apples comparison is debt per capita & debt per GDP, of which Quebec is still way worse than Ontario. Ontario would have to retain the current deficit for 7 years to top Quebec, which isn't going to happen under the Liberal watch, as Wynne's plans are all the kind of things that require a huge increase to operating budget now but very little in the future years, meaning deficit has nowhere to go but down, it's just a matter of how long balance will take (at the very worst, it will take 7 years to balance).
Now Hudak's plans will likely drive us into an even bigger hole with no hope of balance until 2025 at the very earliest as his massive cuts agenda would cause a huge economic drop which would severely erode the tax base--plus he plans massive tax cuts that would do the same! It's been calculated that Hudak's platform would actually drive unemployment up to 11% in 2016. (Whereas currently it's at about 7%).
It's been proven time and time again, that the neoliberal trickle-down and austerity bulls**t DO NOT grow the economy. They create 'fake growth'--where the wealthiest 1%-2% get richer but everyone else stagnates or drops.