Page 26 - Michael 2024 May

Is a $40-billion deficit

good for the Canadian economy?

The absurdity lies in counting as debt

wealth the population has itself produced.

Record deficits keep coming, both for the Can- er since interests will be added; the loans will have to
adian provinces—a record deficit of $11 billion in be paid back plus the interests.
2024 for the province of Quebec, and the highest — That is another matter. If we cannot, and if we
deficit in ten years in Ontario for 2024-2025—and must not blame the Lesage Government for having
for the Canadian government—a $40 billion deficit spent this $200 million, we can certainly blame it for
in 2024, with $54 billion in interest payments on the having entered this amount as a provincial debt.
debt (up 15% on the previous year), with no return to
balanced budgets in sight for years to come. — Why blame it for having entered this amount as
Here are excerpts from a talk given by Louis Even a provincial debt? It had no other choice, some will say.
in the early part of the 1960s, when the Quebec Gov- — Why say they had no choice? What’s with this
ernment ran a $200 million deficit despite strong criti- debt? What is it we owe? To whom do we owe it?
cism by the opposition. Replace the words “Quebec Who owes this? What was this $200 million used for?
Government” by “Canadian Government” and the For many things. Let us say it was used to build
amount of $200 million by $40 billion, and his words roads, bridges, hospitals, and some other things. Who
can be applied to today’s situation in Canada: built these roads, these bridges, the hospitals, and all
these other things? Who built all of this?
by Louis Even They are people who were hired by the Govern-
A few weeks ago, the Quebec Government an- ment, who have received wages. They spent these
nounced that it ended its financial year with a $200-mil- wages; they bought food, clothing, they paid for their
lion deficit. This means that during the last year, rent, etc.
the Government has spent 200 million dollars more Who made this food? Who made these clothes?
than the Government has received through taxes. Of Who built the houses? Again, the population of Que-
course, to be able to pay out more than it received bec did, either one group of individuals, or another.
through taxes, the Government had to borrow. The
Opposition seized the occasion to admonish Jean Le- Yet, when all is said and done, it is the whole of
sage’s Liberal Government for spending more than it the population that is considered to be in debt for
has collected, and for driving the Province into debt. $200 million, while it is the population as a whole
There appears to be a double accusation made, who has made, who has produced goods to the
two blames addressed to the Government: first, for amount of $200 million. Since when do we need to
be indebted for something we ourselves have made?
having spent more than it received; second, for driv-
ing the Province into debt. This may sound odd since, as some would say,
Must we condemn the Premier and his Govern- money had to be used to pay these people. Surely,
they made the products but there was no money
ment for having spent more than they received through within the population to pay for these. What does this
taxes? No, we say, they did the right thing. Had they mean? Does it mean to say that the system of pay-
not spent this $200 million, there would have been $200 ment is not in tune with the production system? Is this
million less in services and works done for the popula- normal?
tion; therefore, there would have been more unemploy-
ment. And if the Government had drawn an extra $200 We work, we make things, and we have no
million in taxes to balance the budget, the population money to pay? Who does the work? Who makes the
would have had $200 million less for its own use. products? The people do. Who makes, who creates
So, we can only congratulate the Government for money? Neither the people nor the Government.
having spent $200 million in goods for the Province Who makes money then? The financiers do, the bank-
ers do. And we owe our roads to these people? They
without having taken these $200 million out of the tax- had no part in building the roads! And those who
payers’ pockets. have built the roads, and everything else, it is they
— But, might it be argued, the Government has who owe the road to those who had no part in build-
indebted the Province by as much, and taxes will have ing it? Isn’t that absurd? Yes, supremely absurd.
to be raised in the future, and these taxes will be great-

26 MICHAEL May/June/July 2024 www.michaeljournal.org