Quote:
Originally Posted by corporatejay
I'm less concerned about the next four years and the debt increases as I am about how we pay it back.
Running deficits and incurring debt is not the worst thing in the world, but when the answer is "how are you going to pay this back" and they have no answer, that's concerning.
Buying a car on credit is not a terrible idea if you know you're getting paid at the end of the month and you NEED a vehicle. But if you buy a car and someone asks how you plan on paying for it at the end and you have no idea, that's a bit concerning.
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This will always be my issue with running big deficits. There really is never a solution to paying it back.
Look at the Feds under Chretien/Martin. They made big cutbacks to Fed spending (many would argue that those cutbacks increased the burden on Provinces) and during the high times of wealth creation, ran 10 billion surpluses. Then the people bought the idea that the Gov't was taking too much and sought tax breaks. Next thing we know, the economy falters and 40 billion deficits are the norm once again.
Happened in AB. Happened in USA.