Is Public Debt Reduction Worthwhile?
This paper examines whether reducing Canada’s federal debt is a worthwhile policy objective, in light of economists’ advice and public opinion favouring debt reduction. As well, the federal government has projected a gradual decrease in its debt-to-GDP ratio over the next 30 years. Reducing the publ...
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| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
University of Calgary
2025-02-01
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| Series: | The School of Public Policy Publications |
| Online Access: | https://www.policyschool.ca/wp-content/uploads/2025/02/FP-8-PubDebt-Final.pdf |
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| Summary: | This paper examines whether reducing Canada’s federal debt is a worthwhile policy objective, in light of economists’ advice and public opinion favouring debt reduction. As well, the federal government has projected a gradual decrease in its debt-to-GDP ratio over the next 30 years. Reducing the public debt means that governments have to adopt a policy of fiscal austerity. This
paper focuses on the trade-offs of fiscal austerity — short-term sacrifices for long-term benefits. |
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| ISSN: | 2560-8312 2560-8320 |