Why federal deficits to 2055 really matter

The federal finance December 2016 update of long-term economic and fiscal projections recently made news across the country. The projections simulate what the federal government’s long-term finances may look like under certain demographic, economic and fiscal assumptions. However, it’s arguably setting the stage for a new era of fiscal irresponsibility.The key assumptions driving the baseline projection are an aging population, which will reduce the number of working-age Canadians and dampen economic growth. Lower economic growth will in turn translate into a lower growth rate of government revenue at the same time the projection assumes there will be upward pressure on

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