Sunday 28 October 2018

2018-15. Canadians prefer elimination of deficit, government does otherwise

In an opinion  poll 1000 Canadians were asked whether they preferred elimination of deficit or having a deficit to invest in government programs. 
58% wanted the budget balanced
33% wanted deficit to invest in government programs
But we will have a deficit. During the last election the government was promising deficits no higher than $10 billion a year and a surplus in 2019. But last year and this the deficits are around $19 billion and are projected to increase to over $21 billion in 2019-20.
So what gives? Governments know that when people are asked, in the abstract, if they want a balanced budget, they say yes. But when things become specific, for example the program they like is to be cut, they are against it.
And the second reason is voting. Young people would pay for current deficits, so they are, presumably, against them. Old people benefit from deficits, because they are getting government programs without paying the full bill. And, as I said many times, a smaller proportion of young people vote.

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