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Sunday April 25, 2021
The federal budget is in. As presented by Finance Minister Christia Freeland last week, the budget expects to run a $354 billion -- yes, that’s billion -- deficit for the current fiscal year.
Plus $152 billion next year.
And $59 billion the year after.
On top of somewhere over $400 billion thrown at the economy during the early months of the COVID-19 pandemic to reduce the carnage caused by closures, shutdowns, lockdowns, and travel restrictions.
The federal government itself has no money. It operates on money it collects from us, in taxes. If it doesn’t have enough money on hand, it has to borrow from us, so that it can feed that money back to us, to get us through an economic crisis, and then we have to re-pay ourselves the money that was borrowed on our behalf from ourselves.
Does that strike anyone else as somewhat circular?
Categories: Sharp Edges
Tags: government, deficit, credit, borrowing