This presentation looks at government debt by prime minister. The presentation also discusses how debt change under various prime ministers.

1. GOVERNMENT DEBT –
CANADA
PAUL YOUNG CPA, CGA
AUGUST 25, 2017

2. PAUL YOUNG - BIO
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and
Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting,
Public Finance and Advanced
Management Systems
Contact information:
Paul_Young_CGA@Hotmail.com

3. GOVERNMENT DEBT
• Source - https://www.taxpayer.com/media/CoverStory24-27WEB.pdf and BMO Economics

4. PAUL MARTIN - AUSTERITY
Source - https://www.policyalternatives.ca/publications/monitor/beware-canadian-austerity-model

5. BLOG – DEBT AND DEFICITS
• When was Harper Sworn in as PM? It was February 6, 2006, right? http://www.cbc.ca/news/canada/harper-sworn-in-as-22nd-prime-minister-1.581596. Harper’s first budget was from 2006-
2007, right? http://www.fin.gc.ca/afr-rfa/2007/afr2007e.pdf. It seems to me based on the F/S that Harper had a surplus, right? (see page 24). Harper also had a surplus in 2007-2008 as well
(please refer to the government website: http://www.fin.gc.ca/afr-rfa/2008/afr2008_e.pdf (see page 23). You will see direct program spending went from 63B to 68B in 2007-2008.
• Harper started putting money back into social programs starting in 2007-2008 (link: http://www.fin.gc.ca/afr-rfa/2008/afr2008_e.pdf) – see page 13
• USA economy growth rates on average are 2% as compare to 4% in the 1990s. http://www.statista.com/statistics/188165/annual-gdp-growth-of-the-united-states-since-1990/. LPC comments
that Harper has been poor manager of the economy and yet nothing on USA Growth rates. USA still has not totally recover from housing bubble or stagnation with the middle class:
http://www.cnbc.com/id/102438557. USA is Trade has been rebounding, but the problem is the lack of capacity for exports in key provinces like Ontario and PQ:
http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/gblec02a-eng.htm
• 2008-2009 there was world-wide global recession which forced Harper and his government to spend on a stimulus. Both the LPC and NDP claim the stimulus was not enough it terms of
helping the economy: http://www.thestar.com/business/2009/02/06/stimulus_not_enough_liberals.html. It is funny how Mr. Goodale recently made posts that CPC had been poor on
managing the finances, but says little on how LPC asked for more money
• Mr. Harper increases transfers to the provinces by 50% over the past 8+ years. The provinces have more money for education/healthcare than at any point of time in the past 20+ years. In the
1990s the LPC cut transfers to the provinces, but nothing is said, why? http://www.slideshare.net/paulyoungcga/canada-deficit or http://www.slideshare.net/paulyoungcga/provincial-
transfers-and-program-spending. The opposition parties like the LPC or NDP are good at saying healthcare will see $36B less in money, but say little how healthcare delivery by various
provinces has gotten worst over the past 10+ years, why? The PBO report never look at delivery, but felt it is just a funding issue: http://www.bloomberg.com/visual-data/best-and-
worst//most-efficient-health-care-2014-countries. Paul Martin Austerity era: https://www.policyalternatives.ca/publications/monitor/beware-canadian-austerity-model.
• Neither the LPC nor NDP discuss either the Build Canada or Gas Tax fund, why? Goodale did say the Build Canada fund is not working, but he never ever said that infrastructure projects carry
over to multiple years, why? http://www.slideshare.net/paulyoungcga/municipalities-canada. BTW: What party brought up CPPIB could be used to finance infrastructure projects?
http://news.nationalpost.com/2015/01/23/kelly-mcparland-justin-trudeaus-hidden-agenda/. Did the LPC not raid EI in the 1990s? http://www.cbc.ca/news/canada/martin-defends-
employment-insurance-surplus-1.164131
• Mr. Harper continues to provide different programs that either existed under the LPC or were revamped under his watch. Mr. Goodale was quoted as saying his party introduced SDTC, but
never says how that program benefited green technology, why? http://www.slideshare.net/paulyoungcga/federal-government-programs-canada or
http://www.hazmatmag.com/remediation/federal-budget-supports-environmental-technology-contaminated-site-cleanup/1000016105/. So, where does SDTC or Next Generation Fuel Funds
stand with either the NDP or LPC?
• LPC never talks about issues with provincial policies, why? The LPC is great saying it is all about money, but really they never once said how mining regulations or skills trades or power rates or
carbon taxes or other policies are impacting business investment, why? http://www.canadianmanufacturing.com/manufacturing/mpp-chan-says-exporting-priority-ontario-liberals-142867/ or
http://www.theglobeandmail.com/report-on-business/economy/ontario-drives-manufacturers-away-with-overpriced-electricity/article14854752/. It is never one policy that hurts business, so
why is more not being said by the LPC? CPC have done great taxation, investment/trade/etc. or basically federal policies!
http://www.kpmg.com/ca/en/issuesandinsights/articlespublications/press-releases/pages/canada-remains-most-competitive-business-tax-environment.aspx or
http://www.slideshare.net/paulyoungcga/key-market-and-industry-indicators-for-canada-january-2015. The LPO has also said the AG sector is important, but yet their policies have failed that
sector: http://www.ofa.on.ca/media/news/connecting-with-cabinet-is-first-order-of-business
• Financial Accountability Act: http://en.wikipedia.org/wiki/Federal_Accountability_Act

6. HISTORY OF RECESSIONS IN CANADA (SINCE 1980-1981)
Source - http://www.thecanadianencyclopedia.ca/en/article/recession/

7. GDP GROWTH BY PRIME MINSTER/CANADA
• Source - http://www.unifor.org/sites/default/files/documents/document/909-harper_economic_critique_eng_0.pdf

8. CANADA GDP GROWTH
• Source – Scotiabank and http://www.indexmundi.com/canada/gdp_real_growth_rate.html

9. JUSTIN TRUDEAU ELECTION PROMISE STRONG
GROWTH
• http://www.nationalobserver.com/2015/05/21/news/harper-worst-prime-minister-economic-growth-great-
depression-trudeau
"Prime Minister Harper has the worst record of any prime minister on
economic growth since R. B. Bennett in the depths of the Great
Depression." — Liberal Leader Justin Trudeau, Friday, May 15, 2015.
Though Justin Trudeau said it as recently as last week, the Liberals have
been claiming since at least 2013 that Canada's economic growth under
the Harper-led Conservative government has been the worst since the
1930s.
Among those who use it often is Liberal MP — and former federal
finance minister — Ralph Goodale.
In an April speech, Goodale added some detail, noting that "since the
Harper government came to power, Canada has had an average annual
economic growth rate of only about 1.75 per cent — that's the worst
growth record of any prime minister since R. B. Bennett in the 1930s."

10. LIBERALS 2008-2009 RECESSION
• https://www.theglobeandmail.com/news/politics/ignatieff-
pushes-more-stimulus/article1229628/
"Mr. Harper has said that the time for more economic
stimulus is over, it's finished. …We believe, on the
contrary, that there are perhaps other things that need to
be done. That's why we're insisting on an improvement of
employment insurance, for example."
The two leaders struck a June deal to set up a working
group on employment insurance, to discuss a Liberal call
for a national, lower standard for eligibility for EI to replace
eligibility requirements that vary widely from region to
region, and a Conservative proposal for extending some
benefits to the self-employed.
Globe and Mail – July 24, 2017

11. SUMMARY
• To reduced government debt means running surpluses. Liberals ran surpluses via cutting program
spending
• Government debt can be good if the debt is used to drive capital investment that support economic
growth, i.e. exports
• Trudeau will add $100B more to the debt despite GDP growth rates that are similar to previous
governments.

12. OTHER SOURCES
• Trudeau - https://www.slideshare.net/paulyoungcga/justin-trudeau-cpc-deficit-june-2017
• Harper - https://www.slideshare.net/paulyoungcga/fiscal-management-conservative-party-of-canada-
pm-harper
• Lapsing funds - https://www.slideshare.net/paulyoungcga/lapsing-funds-fiscal-management-cycle-for-
government