The Current Canada's debt is getting larger. Does it matter?
Nov 6, 2025
Join Peter Armstrong, CBC's senior business reporter, Armin Yalnysian, an economist focusing on workers' futures, and Trevor Toome, an economics professor, as they dissect Canada's growing debt. They explore what a government deficit really means, compare Canada's fiscal health with other nations, and delve into the budget's investment strategy amid trade tensions. The guests debate the implications of abandoning traditional fiscal anchors and the risks of rapid budget cuts, raising questions about the burden on future generations.
AI Snips
Chapters
Transcript
Episode notes
Deficit Defined And Put In Context
- A deficit is simply the annual amount added to the national debt when spending exceeds revenue.
- Peter Armstrong explains a $78 billion deficit is large but comparable to peers like the U.K. and U.S.
Debt Erodes Confidence And Efficiency
- Rising debt erodes confidence and can threaten a country's credit rating over time.
- Peter Armstrong argues lower debt and balanced books make a government more stable and efficient.
1990s Fiscal Turnaround Example
- The 1990s Chrétien–Paul Martin cuts show bond markets forced deep fiscal consolidation in Canada.
- Peter Armstrong recalls debt service once consumed 36 cents of every revenue dollar, now down to 13 cents.