MP Report didn’t tell the truth

By Letter to the Editor on January 22, 2020.

Re: “MP Report: Canada’s fiscal reality,” Jan. 3

The 2019 Economic and Fiscal Update is, in fact, optimistic. Here are a few excerpts from the finance minister’s report.

“Canada’s economy is sound and growing at a solid pace. Economic growth in Canada is on track to average 1.7% in 2019 and 1.6% in 2020 – with Canada expected to be the second-fastest-growing economy among the Group of Seven (G7) countries.”

“Canadians are creating good, well-paying jobs. In the last four years, the hard work of Canadians has helped to create more than one million new jobs – most of them full-time – pushing unemployment rates to historic lows in 2019.”

“Canadians’ wages are growing. For the average Canadian worker, wage growth is outpacing inflation. If current trends continue, 2019 could mark the strongest year of wage growth in close to a decade.”

“Business profits are solid. Businesses in Canada are now recording higher-than-average after-tax profits – boosting their competitiveness and setting the stage for further investments and the creation of more good, well-paying jobs.”

“Canada’s net debt-to-GDP (gross domestic product) ratio remains the lowest in the G7, keeping our country in an enviable position among our peers. Our relatively low level of debt is a major competitive advantage, which the Government is fully committed to maintaining in an increasingly volatile and unpredictable world.”

Here are two facts.

“Government Debt in Canada increased to C$685 billion in 2019 from C$671 billion in 2018.” (Department of Finance Canada)

On this amount, the government pays about $26 billion in interest or about 4%.

On the other hand, “Canadians owe (in consumer debt) C$2.16 trillion which, as a share of gross domestic product, is the highest debt load in the Group of Seven economies.” (https://www.bloomberg.com/news/articles/)

On this amount, consumers’ must pay about $216 billion in interest (at 10%) or about eight times the government’s obligation.

If “nearly half of Canadians (are less) than $200 from insolvency” this stunning number is the reason why. It is not the government that is the source of consumers’ financial angst but consumers themselves. 

Once again, the MP is guilty of perjury in the court of public opinion for failing to tell the truth, the whole truth and nothing but the truth. 

Fake news, Mr. MP, fake news.

Fred Lewis

Medicine Hat

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