Finding intelligent ways to use public spending to stimulate demand and keep the recession brief must include finding methods that will not further burden the public with debt. If the government is insistent upon borrowing money at interest, thereby creating more public debt, to create economic stimulus; The lasting value of any public asset aquired is in doubt unless it can appreciate in value at a rate equal to the rate of interest on the debt created for its aquisition. That notwithstanding any maintenance to the new assets. It just does not seem possible that the government creating more public debt can possibly correct the current economic imbalance. We, the public, through the federal government, have already created $90b in public debt to fight the recession. The money went to banks that make enormous profits year after year and to auto manufacturers who created their own debt quagmire through poor management. That $90b alone will handcuff many future generations with interest bearing debt.
Most problems facing society today are due to massive debt. It is the cause for cuts in social program funding, for the lack of education funding, for the deficiencies in the medical system, endless 'belt tightening' for the public and countless other difficulties. To increase the public debt in an attempt to correct the current problem seems nothing less than folly anyone looking dispassionately at the problem.
Mr. Flaherty claims that most Canadians are asking him to get the banks to free up credit and that more money needs to circulate. However if the money is circulating to a business or individual or government then right back to the lender little, if anything, will be gained for the working public and the status quo will be maintained.
In for a penny in for a pound seems to be the mode of operation for the powers running this country as they play with interest bearing public debt ostensibly for the benefit of the public.
Ian Biggs, Dartmouth