Author Topic: Economics Culture  (Read 2388 times)

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Offline ?Impact

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Re: Economics Culture
« Reply #75 on: March 09, 2020, 08:50:40 am »
As I have already stated, 26 billion in revenues go to service the federal debt each year. Even if that stays the same and we don't borrow any more, by the time they are 80, a child born today will see over two trillion in federal revenues (tax dollars) go to pay interest on money that was borrowed and spent before they were born.

$26 billion today is more than the federal debt stood when I was born. We also have to consider that the GDP of Canada was $41 billion at the time, so inflation must be taken into account. The interest on the money may increase over time, but inflation cannot be ignored. That $2 trillion in 80 years has no comparison to $2 trillion today.

You are right that money is being spent servicing debt since before people were born, such has always been the case. I did the calculation a few years ago, and if we had no debt in the year I was born, we would have no debt today. While there were a few years where our deficit was larger than the cost of servicing the debt, most years it has been smaller.

We spend 26 billion a year servicing federal debt. 26 X 80 = 2,080. That's $2,080 billion spent in interest on money that was borrowed and spent before they were born. All he is saying is future generations will be able to afford the payments. Fiscal reality maybe, but morally bankrupt.

Morally bankrupt if future generations do not inherit the benefits our society has created. We all benefit to some extent on the investments of previous generations, the real question is to what level.