A Debt-Free Canada

Dear Prime Minister,

July 15, 2020

Thank you for your service.

I trust this letter finds you well.

As the situation has worsened tremendously over the last four months due to COVID-19, it would have been far better if I had written sooner regarding this important matter. Nevertheless, this notion remains actionable, and, incredibly, it is not too late to change the fate of our country.

I am writing to you with both a solution to the biggest problem we face as a country (in terms of freedom, equality, national pride, and sustainability).

The Greatest Threat to Our Future

The Debt of our Nation is closing in on one trillion dollars ($1,000,000,000,000) – and counting.

Why should we pay down our Debt?
  • Respect for a younger generation. In virtually every moral framework, it is better to leave things in better condition than you receive them. It won’t be easy, but its the consequence of past foolish actions.
  • It is financially irresponsible to spend money we do not have.
  • At some point, the Debt will need to be paid. Raising taxes will decrease entrepreneurship because the risks outweigh the upside.
  • Our access to Debt will dry up (starting as of our last credit rating decrease). This will be detrimental to our retired and senior citizens and retirees who have been paying into the system their whole lives with the expectation that they will be met with provision.
  • We are susceptible to making irrational policy with bad actors who are holding our debt.
  • Taking on more debt and injecting it into the economy is, by definition, cheapening our currency through inflation. As it is, inflation increases by more than a cost-of-living raise and cripples the working generations.
Why haven’t we already taken action?
  • Debt has become “normal” and viewed as a “neccessity”. With the help of our peers, representatives, and the media, we’ve been lying to ourselves.
  • Our “representatives” won’t cut off the hand that feeds them.
  • Its not a sexy thing to do.
  • Most importantly, our Debt is paralyzing; it doesn’t seem possible to make a dent.

I’ve developed a proposal that collects these mindsets, directs their focus, and brings unity to our country.

A Really Simple and Feasible Proposal

While $1,000,000,000,000 is a huge number, I have a proposal that will cut our Debt to $0 within 5 yearswith a minimal impact on our social services.

This proposal is really feasible, really easy to implement, and completely bi-partisan:

  1. For the next 5 years, freeze our budget.
  2. For the next 5 years, cut every expense by 10%.

That’s it! We don’t need to argue about which programmes or who is affected. We’re all affected; we’re all a part of the solution.

For added clarity, here are the numbers:

  $2,000,000,000,000 Current Annual Expenses
x                10% Saved
x                  5 Years
--------------------
= $1,000,000,000,000

Yes, this is a sacrifice. It will hurt – for five years. But then, it will be over.

The best part? Everyday Canadians are already on board; it’s a simple process that we already understand. We do it all the time in our business, family, and at the gym. A little pain now in exchange for big gains later.

What do we gain from a Debt-Free Canada?
  • We will be prepared to deal with emergencies when they strike.
  • Our cash reserves could become an income source for future generations through safe investments. Alternatively, taxes could be lowered to gain similar effects.
  • Canada will become an attractive place for contributors. People who see strong leadership with a practical goal are happy to contribute.
  • As an added benefit, this undertaking would show a younger generation how to handle money responsibly.
  • As a country, it has been far too long time since we have focused on a concrete problem with immensely positive results for everyone. This gives an opportunity for the new and older generation unite under one objective; a new reason to finally feel a sense of pride and connectedness to our great country.

I look forward to seeing what you can do,