Deficit spending by progressive governments threatens the future of both Canada and United States
Absent a change in leadership, North American economies are on an ugly path
The underlying ideology of progressive administrations is that you can borrow money and give it to the voters that support you but make those that don’t support you pay back the loans. The incentive structure encourages the recipients of this wealth transfer to prefer to live on the dole than make a positive contribution to society and a disincentive for those who are productive to keep producing wealth. One famous pundit once quipped “show me the incentives and I will tell you what will happen”.
My late eldest daughter struggled with heroin addiction and promised that with support and therapy she would kick the habit and focus on being a good mother to her three children and a productive member of society, planning to start a small business. I immediately sent her two thousand pounds sterling to get going and a few weeks later another five thousand pounds.
Katrina encouraged me to believe she was on track and turning her life around. For ongoing support, I gave her a credit card in her own name which I would pay monthly. I thought this would give her enough air cover to turn around her life. She received the card in late June 2013 and within days had run up over $8,000 in “cash withdrawals”
All of the money went to drugs and parties. Katrina died from heroin and cocaine abuse.
The example of my daughter is an illustration of the typical outcome from progressive policies. Something for nothing is a strong incentive to do nothing. Federal deficits are like a credit card for the recipients of the transfers billed to the taxpayers creating the wealth being transferred. The electorate that supports the Democrats in United States and the Liberals and NDP in Canada think society should take money from those who have earned it and give it to those who have not, and that a better society results. A favorite mantra of the left is “tax the rich” and that those who are better off should pay their “fair share” in taxes to support those less fortunate.
Less fortunate? My daughter was not “less fortunate”, just more interested in living it up at my expense and making no serious effort to support her three children. She was intelligent, beautiful and capable of a successful career but made the choices that caused her premature death.
There are those who are less fortunate in our society and the majority of our citizens take pride in our system of transfer payments to level the playing field and help those people along. The issue is degree. The questions the progessives refuse to answer is what is the fair amount to take from someone who has earned it and give to someone who has not, and what will that policy encourage?
With debt now 120% of GDP in United States and interest payments on that debt now greater than military spending an approaching the cost of social security, it is not long until the system crashes and burns. Canada is no better off. Population is no longer growing through birth rates and both Canada and U.S. now outsource births to foreign countries and rely on immigration to build future workforces.
The welcome newcomers bring different traditions and beliefs and will over time change North American culture. By 2041, Statistics Canada estimates 41% of Canada’s population will comprise immigrants, most of them from Africa, Asia and China. Most of the countries of origin are not democracies.
That puts Canada and United States on an unsustainable path, one that will eventually become unaffordable. Within a decade, absent a massive decline in the size and cost of government, social security payments will have to fall on the order of 20% and millions of Americans who have become dependent on the state will see poverty as the legacy of the progressives they elected.
Canada is heading on an equally destructive path. Liberals and Democrats claim conservative voices lack empathy. The reality is that the progressive voices not only lack empathy but also fail to comprehend that “something for nothing” destroys the incentives that make society function and prosper.
Income disparity is a serious problem, but its solution is to create opportunity, not pretend taxation of the successful to the point where there is no incentive to succeed can realize the dream of “equality”. No one wants equality, everyone wants opportunity. What should separate success and failure is effort. Progressive income taxes, public education and state funded healthcare are necessary elemens of fair society but large government, overindulgent “benefits” like universal basic income, and “tax the rich” policies are the antithesis of fairness and destructive to the fabric of a society which values achievement and merit.
I was so saddened by your story of your daughter having 2 of my own & 2 sons. I can't imagine the pain & frustration & anger that you must have gone through. By sharing this with us & the public you hope to 'make' a difference. Bless you.