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Originally Posted by Yakk
1> Lower interest rates made the cost of debt servicing lower.
2> Economic growth has been pretty good over the last few years. Canada has averaged 3.5% since 1995.
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Right, But interest rates haven't dropped that much in the past five years and even so, lower debt servicing does not result in an increase in
overall spending. Just the opposite. And, that spending has far outpaced economic growth.
Spending in 96/97 was $104 Billion. In 99/00 in was $107 Billion. For 03/04 it was forecast at $178 Billion. Rising in 05/06 to $191 Billion. That is assuming equal or lower debt servicing. THAT is a huge wad of taxation.
If spending followed a 3.5% increase from 99/00 to 05/06, it would be just over $130 Billion. So what are they doing with the other $60 Billion. Fixing health care. No.
Pay down the debt or give me back my money!!!!