Before we get too carried away with scary debt stuff, consider these two indicators of the fundamental fiscal fragility/stability of Canadian governments.
It is crucial to remember that these cut backs are not theoretical or abstract, they have had and unfortunately will continue to have harsh, negative effects on thousands of ordinary Canadians.
The other Mayday is a distress call. It comes from the French "m'aidez," or help me. When repeated three times on a radio frequency, Mayday signifies grave and imminent danger.
PSAC has launched a social media campaign to get Canadians talking about coming public service cuts. Is the choice between a strong economy and good public services really an absurd one?
Business elites are attacking the last remaining stronghold of unionism -- public sector workers. Michael Hurley says unions need creative new strategies in response.
The official line we hear every day is that the Canadian fundamentals are great, while other countries are in deep trouble because they are spending beyond their means and borrowing too much.
Andrew Watt has written an especially cogent piece on why the balanced budget rule proposed for the Euro area by Merkel and Sarkozy is a very, very bad idea.
The debate over fiscal policy is often framed in the media as one between advocates of higher deficits from Keynesian-style stimulus measures and advocates of deficits through public sector austerity.
A short addendum to my previous post, after I checked the most recent IMF projections in the June 2011 Update to the Fiscal Monitor.
The major economic problem faced by Canadians is a very slow recovery and weak job market, not government deficits or rising debt. But public spending cuts will make the real problem even worse.