Business
Canada’s debt ranking falls from best in G7 to 7th worst of 32 advanced countries when total debt is measured
From the Fraser Institute
By Jake Fuss, and Milagros Palacios and Callum MacLeod
Canada’s relative debt position is much worse than the federal government suggests when a larger group of advanced countries are included and total debt—not just net debt—is measured, finds a new study released today by the Fraser Institute, an independent, non-partisan, Canadian public policy think-tank.
“The federal government is very quick to point out that the country’s net debt relative to the size of the economy (GDP) is lowest in the G7, but Canada’s true debt position is much worse than Ottawa lets on,” said Jake Fuss, director of fiscal studies at the Fraser Institute and co-author of Caution Required When Comparing Canada’s Debt to that of Other Countries, 2024.
The study finds that Canada’s relative debt position, instead of being the best of the G7, falls significantly when total debt is measured instead of measuring debt after adjusting for financial assets. Net debt, which is the measure used by the federal government, offsets a part of the country’s total debt by including financial assets.
Specifically, Canada ranks 26th of 32 developed countries for its total (gross) debt as a share of the economy. In other words, Canada’s total debt relative to GDP is the 5th highest in the G7 and 7th highest amongst the industrialized world (32 advanced countries).
The reason Canada’s debt position declines so dramatically when total debt—and not net debt—is measured is because net debt includes the assets of the Canada Pension Plan and the Quebec Pension Plan, which unlike the public pension programs of other developed countries invests in non-government assets such as stocks and bonds.
As of December 2023, the combined assets of the CPP and QPP, some $716.7 billion, represented more than one-quarter of the difference between Canada’s total debt and net debt.
“The government cannot use the assets of the CPP and the QPP to repay its debt, so it is disingenuous to include those assets in Canada’s debt calculations,” Fuss said. “Canada is not the low-debt jurisdiction that Ottawa suggests, and Canadians should be aware of the true state of the country’s indebtedness.”
- The federal government continues to rationalize its debt-financed spending based on international comparisons showing Canada with the lowest level of debt in the G7.
- Of the two broad measures of debt, gross debt includes most forms of debt while net debt is a narrower measure that accounts for financial assets held by governments.
- By using net debt as a share of the economy (GDP), Canada ranks 5th lowest of 32 countries and lowest amongst the G7. By using gross debt as a share of the economy, Canada falls to 26th of 32 countries and 3rd lowest in the G7.
- Canada experiences the largest change in its indebtedness ranking—falling 21 places—when the measure shifts from net debt to gross debt.
- One reason for this pronounced change in ranking is that net debt includes the assets of the Canada and Quebec Pension Plans, which have unique approaches to funding public retirement plans: unlike most other industrialized countries, the CPP and QPP invest in non-government assets including equities and corporate bonds.
- As of December 31, 2023, according to Statistics Canada data, there were net assets in the combined CPP and QPP of $716.7 billion.
- According to IMF data, the difference between Canada’s gross and net debt was approximately $2.7 trillion at the end of 2023, which means the assets of CPP and QPP explain more than one-quarter of the difference.
Business
DOGE already on the job: How Elon Musk and Vivek Ramaswamy caused the looming government shutdown
Legislators had 24 hours to read through 1,547 pages. Ramaswamy read them. Musk presented an alternative. The process collapsed.
Elon Musk and Vivek Ramaswamy are flexing their muscles even before President Elect Donald Trump’s inauguration, spiking a bipartisan spending bill. The bill was introduced on Tuesday with voting scheduled for Wednesday. Legislators were under massive pressure to approve of the spending bill or risk a government shut down. Problem is, the bill was over 1,500 pages long!
Chances are, the bill would have passed and in the ensuing weeks as details became known the public would have been outraged by all the extra plans to spend / waste taxpayer dollars. Legislators would have apologized by saying they simply had no time to read everything and they were desperate to avoid a shut down.
That’s where the new DOGE comes in. First Ramaswamy somehow read the bill and posted a video to TikTok and X to inform voters what they were going to be paying for in this new bill.
@vivekramaswamy Congress wants to waste your money without telling you, make sure that doesn’t happen
From MXMNews
The newly formed Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy, successfully campaigned to halt the bipartisan continuing resolution (CR) in Congress. Musk and Ramaswamy took to X, rallying conservatives against the 1,547-page stopgap funding measure they argue is riddled with wasteful spending and unnecessary policy provisions.
Musk, a billionaire entrepreneur and vocal advocate for government reform, characterized the bill as a “pork-barrel” monstrosity. “Unless @DOGE ends the careers of deceitful, pork-barrel politicians, the waste and corruption will never stop,” Musk posted on X, adding that lawmakers who support the bill should be “voted out in two years.”
Meanwhile, Ramaswamy, a former Republican presidential candidate and DOGE co-chair, proposed an alternative to the bulky spending bill. Sharing a draft of his one-page resolution, he described it as a minimalist approach that avoids exacerbating historical spending excesses. “This is what a clean CR looks like,” he wrote, emphasizing the need for fiscal restraint.
Musk and Ramaswamy posted this to X.
Shorter = better. This bill is only 116 pages, instead of 1,500+ pages. Took a LOT less time to read. Glad to see the following garbage from yesterday’s bill removed in the current version: – Congressional pay raise/health benefits – 17 miscellaneous commerce bills – Random new pandemic policies, like funding for “biocontainment research laboratories” – Renewal of the “Global Engagement Center,” a key player in the federal censorship state
In record time, the public was informed, politicians were influenced by outraged taxpayers, and politicians blamed each other for a faulty bill and were forced to go back to the drawing board.
It’s all explained very well in this video presentation from Kaizen Asiedu, a Harvard graduate in philosophy who makes videos informing Americans about complicated political matters.
Friday’s deadline to avoid a government shutdown looms. Musk posted on X that a shutdown would be “infinitely better than passing a horrible bill.” His DOGE partner Vivek Ramaswamy urged Americans to contact their representatives to “stop the steal of your tax dollars.”
And President-elect Donald Trump posted this: “If Democrats threaten to shut down the government unless we give them everything they want, then CALL THEIR BLUFF,”.
Should the spending bill fail, it will mark a significant victory for DOGE and a potential turning point in efforts to reform Washington’s spending habits.
Business
Senator Introduces Bill To Send One-Third Of Federal Workforce Packing Out Of DC
From the Daily Caller News Foundation
By Harold Hutchison
Republican Sen. Joni Ernst of Iowa introduced legislation Thursday that would send nearly a third of the federal employees out of the Washington, D.C. metropolitan area.
The bill, known as the ‘Decentralizing and Reorganizing Agency Infrastructure Nation-wide To Harness Efficient Services, Workforce Administration, and Management Practices (DRAIN THE SWAMP) Act, is far more sweeping than the “Returning SBA to Main Street Act,” legislation introduced by Ernst Dec. 12 that focused on the Small Business Administration (SBA). Ernst told the Daily Caller News Foundation that the move would improve services for Americans while saving billions of taxpayer dollars.
“Federal employees don’t want to work in Washington, so why should taxpayers be footing the bill? By relocating at least 30% of the federal workforce, we will save billions and improve service for veterans, small businesses, and all Americans. The bureaucrat laptop class has been out of the office for far too long, and it is time to get them back to work for the American people,” Ernst told the Daily Caller News Foundation.
The legislation requires most government agencies to “promote geographic diversity, including consideration of rural markets” when relocating employees from the D.C. area and to “ensure adequate staffing throughout the regions of the Administration, to promote in-person customer service.” Exceptions are made for fewer than 10 agencies, most involved in national security, like the Department of Defense, Central Intelligence Agency, the Department of Homeland Security, and the Department of Energy.
The legislation also requires most federal agencies to reduce the total office space in their Washington, D.C., headquarters by at least 30% in a two-year timeframe following the bill’s enactment.
Ernst issued a 60-page report Dec. 5 that covered findings from Ernst’s investigations into telework since she sent an August 2023 letter to 24 government agencies requesting a review of the issues involved with telecommuting.
Previous investigations by Ernst into telecommuting by federal employees detailed the issues that telework created involving locality pay, an adjustment to the basic pay of civilian employees in the federal government intended to make sure that federal employees have comparable compensation to private-sector counterparts in a given area of the country. In the August 2023 letter sent to 24 government agencies requesting a review of the issues involved with telecommuting, Ernst cited a media account of a VA employee who attended a staff meeting while taking a bubble bath.
Ernst issued a 60-page report Dec. 5 that covered findings from her investigations into the issues involved with telecommuting by federal employees. Those findings detailed issues that telework created involving locality pay, an adjustment to the basic pay of civilian employees in the federal government intended to make sure that federal employees have comparable compensation to private-sector counterparts in a given area of the country.
In one case cited by the senator on multiple occasions, a United States Agency for International Development (USAID) employee received locality pay for the Washington, D.C., area despite living full-time in Florida. The employee in question retired before the conclusion of the probe, according to a summary posted on the USAID inspector general’s site April 30.
Ernst’s legislation mandates that affected federal agencies “ensure that the rate of pay of the employee is calculated based on the pay locality for the permanent duty station of the employee.”
The Office of Management and Budget did not immediately respond to a request for comment from the DCNF.
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