While this country is involved in discussions (held mostly in secret) concerning our ever increasing debt, and ever increasing spending, perhaps we should look to what the liberals in Canada did. Yes, you read that correctly, the liberals.
In 1992 Canada faced a debt that was almost 70% of GDP. Thirty-five cents of every dollar collected in revenue was needed just to pay the debt.
Canadians have told us they want the deficit brought down by reducing government spending, not by raising taxes…
Newly elected Liberal Party Prime Minister Jean Chretian listened.
Here is what Canada did. For every dollar in tax increases, the government cut spending by seven dollars. The number of government employees shrunk by 14%. Canada’s railways and air traffic controllers were privatized.
Between 1995 and 1998, a $36.6 billion deficit turned into a $3 billion surplus. Canada’s debt-to-GDP ratio was cut in half in a decade. Canada now has faster economic growth than America…a lower jobless rate…a deficit-to-GDP ratio that’s a quarter of ours, and a stronger dollar.
And, if that doesn’t convince you that the United States is on the road to ruin, perhaps this will. The former Canadian Ambassador to the United States, Allan Gottleib, recently published a book …”The Canadian Century: Moving Out of America’s Shadow”. In the forward, Ambassador Gottleib writes,
[i]f we want to see what would have become of Canada had we not lived through difficult changes, we need look no further than Washington, D.C., where unreformed entitlements and undisciplined borrowing are hobbling America’s power to be a world leader.
We now stand in the same place as Canada did some 20 years ago. Twenty years from now, will we look like Greece does today, or like Canada does today?
The choice is ours.