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Dear John,
The federal government is very quick to point out that the country’s net debt relative to the size of the economy (GDP) is lowest in the G7, but Canada’s true debt position is much worse than Ottawa lets on.
A new study published by the Fraser Institute finds that Canada’s relative debt position, instead of being the best of the G7, falls significantly when total debt is measured instead of measuring debt after adjusting for financial assets.
Canada’s net debt includes the assets of the Canada Pension Plan and the Quebec Pension Plan, which – unlike the public pension programs of other developed countries – invests in non-government assets such as stocks and bonds.
The government cannot use the assets of the CPP and the QPP to repay its debt, so it is disingenuous to include those assets in Canada’s debt calculations.
Check out the full study here and be sure to share this news with your friends and colleagues.
Sincerely,
Niels Veldhuis
President
The Fraser Institute
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