I feel very badly for the people of Japan, the economic pain that they continue to endure is taking a significant toll on hard working families. There is once again a very important lesson that governments in Canada must take away from the struggles in Japan which is the long term implications of run away debt and deficits. Japans crippling national debt stands at more than 200% of their annual GDP, the worst debt situation of any industrialized nation. As a result this past spring their government was forced to introduce a 60% increase (5 to 8%) in their sales tax to try and service the debt and satisfy bond holders despite the fact that their economic recovery was exceptionally weak and fragile. We never want to be in that position in Canada. Furthermore any government discussion in Canada endorsing or suggesting new revenue tools, fee or tax increases should be weighed against the known impact it will have on economic growth as once again demonstrated by what has happened in Japan over the last two quarters. https://ca.finance.yahoo/news/japan-says-economy-contracted-1-6-pct-july-001013138.html
Posted on: Tue, 18 Nov 2014 04:41:34 +0000
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