Reducing Government Debt Could Boost Average Canadian Worker Incomes by $2,100 a Year: Study

A magnifying glass enlarges the holographic image of Parliament Hill's Peace Tower on a 20 dollar bill issued by the Bank of Canada, shown in a display case at the Bank of Canada Museum in Ottawa, on Sept. 4, 2024. The Canadian Press/Justin Tang

Reducing government debt in Canada could boost incomes for average workers by around $2,100 per year, a new study has found.

If Canadian governments reduced their debt relative to the size of the economy (GDP) over five years back to pre-pandemic levels, it would increase productivity and boost incomes for average workers by $2,100 a year, says the study published by the Fraser Institute on June 24.