Saturday, May 1, 2010

Pt 2: We scream loudly - again - re government accountability

Yes, government accountability and transparency are important issues.

And if Canadians cannot get accountability and transparency from every federal, provincial and municipal politician (hey, even the darn janitors; I mean, who really needs two-ply anymore?) then we’ll scream.

Well, at least we’ll make a racket.

However, while we’re distracted by howls for accountability and jeers for transparency from our government and hope for savings of mere millions of dollars, our national debt ($620 billion by 2014) and individual debt grows by the billions and hangs by the slimmest of threads over our heads and those of our children and grandchildren.


["One of these could be hanging over your little round head"]

Two recent newspaper articles inspired my earlier and current recent posts.

The first, by Greg Weston -

No peeking! Expenses off limits (London Free Press, Apr. 26)

The second, by Kerry Thompson -

MPs, Senators need to call in auditor general (London Free Press, Apr. 29)

Thompson writes:

This is more than $500 million we’re talking about here. If taxpayers’ money is being spent properly, (the auditor general) shouldn’t find anything untoward and Canadians would have a better sense of how their dollars are being used by the people they send to the Hill — or, in the case of senators, people they didn’t send to the Hill.

I agree. A big glass of accountability all ‘round.

However, of the $500 million ‘we’re talking about here,’ a goodly portion is the actual salaries of MPs and Senators, so even if the auditor general could achieve a 25 per cent reduction in Parliament spending, the savings - on Canada’s behalf - would at most be $75 million per year.

If the savings were judiciously applied to the national debt, our balance would be zero in only 8,267 years.

(My bet is, if we pay down debt as we have in the past - i.e., during 20 per cent of our annual budgets for the last 54 years - we won’t pay down debt for more than 3 or 4 years in the next 20. Next stop - one trillion dollars of debt.)

Therefore, in my humble opinion, the recent screaming at the government is less about accountability than it is distractibility.

Certainly, accountability is important, and savings could be made, but 
many taxpayers and organizations, e.g., Canadian Taxpayers Federation, seem to use 'government accountability' as a distraction from a bigger problem, i.e., our debt.

If not a distraction, then a shield against ever paying more taxes in their lifetime.

Many say, “Let government clean up their mess before they come after me."

Others say, “Bug off. I’m shopping. And yes, those three bags of chocolate covered Oreos are a necessity.”

As per an earlier analogy, while we howl about fat on the T-bone, there are three hefty cows (they could be bison!) hanging over our heads by the slimmest of threads.

National debt is not only projected to hit $620 billion by 2014 (an all new Canadian record) but at the same time personal debt will be near $160 for every $100 of income per capita, also the highest level in Canadian history.

So, while screaming for government accountability, we should look up.

Look way up, at the danger caused by our shared lack of personal accountability.

.

2 comments:

Unknown said...

Yes, those damned CTF people and their ignorance of our growing debt.

Someone should really dedicate some sort of website to tracking the debt... oh, yeah, the CTF already did.

www.debtclock.ca

G. Harrison said...

Hi Scott,

I directed readers to the debt clock several weeks ago, for good reason.

I borrowed 'scream' from CTF director K. Gaudet's earlier column, also referenced here, i.e. "Tax cuts possible without cutting services." Slim solutions with slim chances.

Higher taxes (earlier I recommended 1 percent increase to personal and corporate taxes for 5 years, to go toward national debt; still stand by it) must be considered as debt grows by the billions as per debtclock.

Cheers,

GAH