In case any Canadians are feeling smug about our debt situation compared to US debt woes we offer this cautionary article to consider:
Our federal debt is about 35% of GDP while the U.S. passed 100% on Tuesday, and Ottawa’s deficits are only 2% of GDP rather than Washington or London’s staggering 10%. But let me try to wipe the smile off your face.
For starters, a more realistic on-book number for Canadian public debt is over 80% of GDP. That’s what the IMF gets by including provincial as well as federal debt (for instance, Quebec’s $238 billion) and such “hard” unfunded liabilities as public sector pension funds.
An even bigger reason for worry is soft unfunded liabilities for things such as the Canada Pension Plan and the Canada Health Act. In 2006 the Chief Actuary of Canada formally estimated the unfunded liabilities of the CPP at $620 billion. …Then there’s infrastructure.
Read the rest. And what about Municipal debt? So you had better listen up Municipal councillors everywhere, and especially in spendthrift Wolfville. Are you listening to Councillor Irving or ignoring him?