Canada Spending

I took it all for granted
But how was I to know
That you'd be letting go
--Bryan Adams

When measured as a % of GDP, federal government spending in Canada has trended lower vs the US. Since the mid 1990s, the Canadian government has cut spending programs, privatized government activities, reduced tax rates, and slashed debt. In 2015 Canadian government spending had fallen to 14% of GDP compared to 21% of GDP for the US.

Perhaps the gap will narrow now that a new Liberal regime was elected last week in Canada. The Liberals have promised to raise taxes on high earners, spend more on infrastructure, and run deficits to stimulate the economy.

It would be a shame to see the progress made by our northern neighbors wiped out in a shift from prudence to profligacy.