Comment 119489

By kevlahan (registered) | Posted June 21, 2016 at 09:35:17 in reply to Comment 119488

But Hamilton turning down LRT just means the money gets spent in another city, it doesn't actually save any money at all. We are dealing with reality, not a hypothetical alternative where turning down the money means it gets given back to Ontarians.

And no one has seriously claimed that Ontario is close to being bankrupt.

However, Canada’s “general government net debt,” which adds in central and subnational debt and subtracts financial assets such as pension-plan holdings, is just 28% of GDP this year, still by far the lowest in the G-7. Germany, the next lowest, is at 47%. The U.S. is at 82%. So by most objective measures, Canada’s relative fiscal strength prevails.

And we are dealing with another real debt: almost 40 years of insufficient spending on infrastructure construction and maintenance. For example, spending on transit increased at 4.8% annually from 1958 to 1977 (keeping up with population growth and improving service) but has only grown at 0.1% since then. At some point we need to fix this problem and the "Big Move" is a significant step towards this.

And the budget watchdog said in May that the Ontario government can balance the budget next year:

Comment edited by kevlahan on 2016-06-21 09:46:02

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