Wednesday, December 21, 2011

Flaherty please shut up about Europe

So recently some more finger wagging from Jim Flaherty about Europe debt. in addition to earlier comments [1] [2] and others.

What's the point of this anyway Jim? What are you trying to accomplish here. It's not like Canada with a $1 billion a week of federal borrowing and an irresponsible commitment to increase federal health spending by 6% per year forward as far as the eye can see is any kind of model of financial restraint or responsibility.

Canada has the same structural flaws as Europe including low birth rate, aging population, large public sector, high debt from previous governments, large segments of the population living off government cheques, political preference to borrow and spend today and deal with the financial side "in the future", lack of political will to make unpopular cuts, etc.

It makes me think of an apartment building. Two neighbours make $40k a year. Paul has $20k in credit card debt and is insolvent, unable to meet his commitments. His neighbour Jim has $15k in credit card debt, can only make minimum payments, and continues to spend more than he makes. This would be like Jim trying to shame and lecture Paul about personal financial responsibility.

Get your own financial house in order Jim. Canada's fate is Europe's fate is way things are going right now. You should be treating the European situation as a very clear warning to you.

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