Today Canada’s new conservative government announced their first federal budget. The budget included broad tax cuts for most Canadians, a change from the liberal budgets in recent years. During the past several years the Canadian government has been paying off billions of dollars in international debt and tightening government spending. Finally they have gotten to a point where the government can afford to reduce tax revenues and put more money into the hands of working citizens. One economist explained that Canada is now considered a low-debt nation (relative to the United States, anyway). The Canadian government feels confident that years of fiscal responsibility will allow them to take on debt later if necessary, for example in the case of a recession. “Canada can afford the next recession!” he proclaimed.
Can the United States say the same?