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Originally Posted by Acajack
I have to say I was a bit heartened by Eric's post with the good financial prognosis, though obviously Yves Giroux can only assume that public spending decisions will remain similar to what we have today and have seen in the recent past (huge blips like the pandemic notwithstanding).
It's also possible that a future government might go crazy with spending, perhaps in a psycho-Keynesian effort in response to a serious economic downturn, that the gambit fails and that we end up somewhere like where Argentina is now.
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Debt situation aside, I wouldn't consider it a great financial prognosis, but more of a glimpse into a potential future. The PBO can say whatever they want, but what either a provincial or the federal government ultimately ends up doing can send us down a different trajectory, and the government has been known to go against the recommendations of the PBO. The point still unfortunately stands that our third largest province could be at risk of bankruptcy, and that many other provinces are spending beyond their means. The actual GDP growth numbers themselves also don't look that great for a 2098 target.
I certainly think that we are going to have a brighter future than some of the European giants like the UK (who's financial situation looks awful and is in very fast, active decline after Brexit), Italy (who has difficulty fighting systemic corruption and has to mend a massive national wealth divide), and Germany (who also has a national debt problem and will be dealing with energy price crises more often in the future), but it is clear that there are moves that need to be made to make our own future less chaotic.
Quote:
Originally Posted by Acajack
Still, perhaps we don't appreciate that much how the period you're referencing (1945-2008 and maybe a decade more in Canada's case) was truly exceptional and an outlier in human history.
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I also have had the thought that Canada has been unusually lucky in terms of how the country was able to be so prosperous and governed with minimal resources over that period. The social contract seems like it was very strong during this time, and unfortunately started to fray around 2008 and further in 2020 to present. Hence why many of our high-trust governance and law enforcement systems (less policing resources, minimal checks on white collar/financial crime, light criminal sentencing, lax security for politicians, minimal enforcement on ethical violations for politicians, etc) all seem to be not working so well during our current time.
I think this also explains why there has been so much change and spending on government-related operations at this time (centralization of military operations into a singular facility, massive overhaul of Parliament Hill and associated infrastructure, more security for politicians, discussion of changing the RCMP into an FBI-type agency, formation/expansion of FINTRAC, expansion of CSE/CSIS operations and capabilities, etc). It seems like the government is playing catch-up on the reach of its capabilities and effectiveness now that Canada is becoming a bigger, high-profile country and has big country problems, instead of the smaller, low-profile, and quiet country that Canada was.