I’m not convinced that people know the difference between a debt and deficit when it comes to a country.
The United States currently has over $16 trillion in debt. Their 2012 fiscal deficit is about $1.3 trillion.
Put simply, the national debt is the accumulated total of all previous budget deficits plus money borrowed intragovernmentally (this would include things like surplus money paid into social security which the government took and spent).
In Canada, our national debt now stands at over $600 billion, and our current fiscal deficit is about $30 billion. The population of the United States is 10 times bigger, their national debt should be $6 trillion and their fiscal deficit should be $300 billion. Oops! I think they’re in big trouble.
What really amazes me is what their plans are for the next 8 years. Fiscal deficits right through 2020. Meanwhile, in Canada we’re planning on being in a surplus position by 2015. Furthermore, our plan is to start paying down our national debt while the US has no such plan.
A while back, I read a book titled Comeback America by the former Comptroller General of the United States; David M. Walker. Here’s what he had to say about the US national debt, “Yes, we can create a better future for our country and our families. It’s not too late. Plan A is to save our Republic and create a brighter future. Plan B is moving to Vancouver, BC, Canada because Australia and New Zealand are too far from our families.”
I’m proud that Canada has a better handle on our Country’s finances and if David Walker is right (which I think he is), we should all invest in real estate in Vancouver because we’re about to get an awful lot of company.