Quote:
Originally Posted by simmer2
I have a question and a comment for those that are more knowledged than me in this area: - Can governments write off their interest payments based on what they are putting the money towards? I'm guessing because they are government they can't write anything off because it comes out of their own pockets anyways
- Does the Government of Canada invest its money in anything so it can try and earn additional money from the surplus?
- Jack Layton, NDP leader, doesn't want any money spent on paying down the debt. http://www.ctv.ca/servlet/ArticleNew...825?hub=Canada
Does Mr. Layton not understand simple economics? If we continue injecting money into social programs with a surplus, then what happens when we don't have a surplus? Those programs people have now relied on get removed and that government gets pissed on. |
Gov't cannot 'write it off' (I just had a Seinfeld flashback - "they just write it off, Jerrry!"). I can't think of how the concept would even work for a gov't.
Gov't does own assets, and the CPP has significant holdings. All gov't buildings, for example, could be considered assets the gov't has invested in (and is now selling off for the most part). Gov't also used to hold significant share of companies like Petro Canada, but I think this has been divested.
I'm not sure what Layton does or does not know about economics, but it is not clear paying off debt is the best choice for surpluses. I personally believe in it for reasons way to long to get into here, but there are a lot of very good arguments for governments using debt for a wide variety of reasons. Businesses and individuals typically carry debt, some for good reasons and some for bad - gov't likely has similar options. I just don't believe they are capable of making good debt decisions so we should largely take that choice away.