Editor: The global economy appears to be entering another problem period, with some world economies having serious problems — Greece, Spain, Italy, plus many others. Canada’s economy is one of the best in the world, but what happens in the rest of the world will have an impact on us.
One of the biggest problem areas is a rising national debt, in relation to GDP, and the inability to bring it under control. This is caused by a demand for services and the inability of government to pay for them without going further in debt.
One of our main problems in Canada, and the world in general, is an ever increasing aging population. How do we pay for the increased costs associated with this aging population?
Governments have three main sources of revenue — taxes, service fees and royalties. The main one is taxes, but a strong economy sure helps. A reduction of services, or freezing them, is a possibility.
In Canada we will have to live with higher taxes as part of the solution. A reduction in the national debt is also part of the solution. This will have a negative effect on many people, but it will reduce the problem over a shorter period of time, and we will be better off in the long term.
The only thing we should demand of government is the most efficient government possible.
Eric J. Bysouth,