It Is Getting Harder And Harder To Admit Beeing A Fiscal Conservative

Raphael Alexander: $500B debt no reason to panic

Posted: November 19, 2009, 2:15 PM by NP Editor

I’m probably the least likely person to stand up and defend the Conservative Party’s profligate spending, and I think I’ve made a reputation for myself [the benefit of that being debatable] on being consistent about criticizing the exorbitant spending. I didn’t think the stimulus budget was necessary, other than to save the government from being defeated in the House of Commons, and I haven’t been impressed by building community hockey arenas and recreational centres in the name of economic stimulus.

Having said that, is it really surprising we’re nearing the $500 billion debt mark? It isn’t as though this is some new kind of number that’s never been seen before. It isn’t anything like the kind of jaw-dropping record-shattering debt numbers south of the border, where their annual fiscal deficits are three times the debt we’ve accrued in the history of our nation.

I admit there’s nothing good about going into deeper debt. According to the 2009 Conservative budget, we’re to go from a public debt of $458 billion in 2008-09 with $900 million in annual interest charges, to $492 billion in 2009-10 with annual interest charges rising to $2.4 billion. We now know that the projections fall short for fiscal 2009-10, since we’re expected to hit the $500 billion mark by Sunday. Increased annual interest charges make it even more difficult to pay down the debt in the future.

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