Friday, October 01, 2004

Kerry and Bush

I didn't bother watching the debate last night because they both stand for more or less the same thing. Americans would probably get their panties in a bunch and point out differences in policies regarding gay marriages, the environment etc., but I think that a lot of people (including Canadians) are missing a major point about the US that nobody seems to be talking about.

How about that MONSTEROUS US deficit? Yeah sure we Canadians have a huge one too, but we argue about it all the time and have talked non stop about it for a decade. We've actually paid down $50 of $600 Billion.

The conservative estimates from Republican friendly economic think tanks peg the US deficit at over 7 Trillion dollars with a hidden unfunded deficit totalling over 40 Trillion dollars. Unfunded budget deficit in simple terms is pension, health care etc. that is promised to be delivered but there is no money in the bank for and no tax revenue coming due for.

40 Trillion dollars divided by 300 million people means that every man, woman and child in the United States is liable for $133,000 $US.

MR BUSH, MR KERRY, what about the buck thirty three that all of you patriots owe? Talk about it, argue it, scream about it. Just do something about it because if your country goes down in economic flames, so do we. Mr Bush, your 2004 deficit of $480 Billion US$ would be the Canadian equivalent of $69 billion.

If the Canadian government ran a $69 Billion dollar deficit last year, they would collectively be castrated in a very public display of fury.

How about here in Quebec?

Federal Debt: 500 Billion ($16,666 per capita)
Provincial Debt: 110 Billion ($14,666 per capita)

Total debt per capita: $31,332

Here's the saddest part, as government debts get cranked up, more of tax dollars go to foreign banks in interest payments instead of being spent on government services like roads, hospitals and education. Canadians already spend 30% of tax revenue on debt payments.

For the record, you can make a voluntary donation to the US Secretary of the Treasury to pay down the US debt. ("Gifts for Reduction of the Public Debt." Established by Public Law 87-58 in 1961).

I would recommend that Secretary Snow consider buying some squeegees as well.

Some sources:
Canadian census stats
Quebec financial status
CNN Budget article
Scotia captial budget report
Minister of Finance financial report
US Population demographics
Liberal article about unfunded US liabilities
US Treasury Debt FAQ

No comments: