How Canada Can Tame the National Debt

First, stop the bleeding; second, liberate the economy

People walk past boarded up stores on Montreal's Sainte-Catherine Street on June 3, 2020. Every stalled business is a double-edged sword: lower tax revenues and more people eligible for unemployment benefits. The Canadian Press/Paul Chiasson

Commentary

At best, governmental debt is deferred taxation plus interest. At worst, it signals regime uncertainty and corrodes investment and economic competitiveness. Canada’s unprecedented deficits are more than toying with the latter.