The Debt: An Economic Catastrophe Essays -- essays research papers fc

The Debt An Economic CatastropheFew national economic issues have generated the same lovely of concern as has the national debt problem of Canada. There is a pressing need for long-term policiesto lift Canada out of the national debt hole it is in. Eliminating the debtwill not only let loose up money being spent on interest and reduce taxes, but makeCanada a more feasible rear for future generations to live and work.Interest on the debt has eroded the governments ability to fund its ownoperations and essential social services. Presently, thirty-five cents of everytax clam the federal government raises is used for interest payments alone onthe debt. Though there have been operating surpluses within the federalgovernment, they have been eaten up by the debt interest payments. Few peopleunderstand the devastating effects of compound interest. The debt, at acompound rate of 10%, doubles in sevener years, quadruples in fourteen years, andis eight times as much in twenty-one years. T his creates great difficulty forgovernments to slow the debt, much less eliminate it. Our federal debt growsall by itself to the tune of approximately ninety million dollars every day.This may seem hard to digest, but it is reality. The need for debt eliminationis vital if Canada wants to free up billions of dollars being spend on interestpayments. Two approaches may be taken to this. First, an increase ingovernment revenues through higher revenue may be considered. However, taxesare a...