Many governments are operating beyond their resources and some, such as Detroit and Montreal, are now experiencing the calamitous situation that occurs when debt is too great.
Government is obliged to set an example. Government has a moral obligation to operate within its financial resources and set an example of fiscal prudence for its citizens. Borrowing from the financial health of its children, as is now occurring, is an immoral act. The average taxpayer is feeling tapped-out. In addition to government debt, Canadian citizens are accumulating personal debt. Nationally, according to BMO (national debt report), average household debt rose from $72,045 last year to $76,140 in 2014, and increasing this debt-load will impact negatively on government’s capacity to raise taxes for paying down government debt. The average… Continue Reading