Thursday, February 4, 2016

Ontario Credit Rating Goes AA or Alcoholics Anonymous

Please read the details and Chart for yourselves; https://www.fraserinstitute.org/

Component 3: Deficits and debt The final component measures the relative performance of the premiers on deficits and debt. Specifically, it measures a premier’s use of deficit financing for government spending and whether the premier increased or reduced their province’s debt burden. The deficits and debt component includes two measures, both of which are calculated relative to the size of the provincial economy (GDP). Deficits and surpluses are captured by the average annual deficit or surplus as a percentage of GDP over the premier’s tenure. Debts are captured by the average annual percentage change in net debt as share of GDP. Premiers who recorded deficits and increased government debt performed worse than those who balanced their books and reduced provincial debt. 

Conclusion In the current economic climate, the pursuit of sound fiscal policy by our political leaders is an important foundation for improving our economic well-being. This report measures the relative performance of 10 Canadian premiers in three core areas of fiscal policy: government spending, taxes, and deficits and debt. Premiers who fare well should be commended, while those lagging behind should use the performance of others as a model for reform. Regardless of where they ranked, all premiers, even those with high rankings, have room for improvement. https://www.fraserinstitute.org/sites/default/files/measuring-the-fiscal-performance-of-canadas-premiers-2016.pdf

According to the interview I listened to this morning Ontario's debt service is a greater expense that what is being paid on Hospital Care or Education.  

This $ 300 Billion Dollars in Debt will require interest payment.

My bank would not allow me to borrow that much money without a plan of repayment.

What do you think?



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