Due to the recent Stock Market crash, pension funds are evaporating and savings are shrinking across Manitoba. The banking crisis in the United States has caused Stock Markets around the world to drop. Many Manitobans have their savings and registered retirement savings plans in Mutual Funds and in shares directly invested within the Stock Exchange, and as a result, the values of their savings and pension funds have dropped dramatically. All of this is sure to have a negative effect on the ability of all governments to continue to provide necessary government services around the world. Many provinces have prepared for a downturn in the economy. When the sun was shining they were repairing the roof. British Columbia, for example, had a Provincial Debt of $40 Billion only 9 years ago – today it’s less than $8 Billion, because their government paid down the debt. Alberta totally paid out its debt and owes nothing and consequently pays no interest. Saskatchewan paid its $10 Billion debt down to less than $5 billion and is on track to eliminate its debt within the next 2 years.
How does Manitoba compare? It doesn’t. While all other Western provinces have been good money managers – Manitoba has not. Manitoba’s general purpose debt has grown from $7 Billion in 1999 to well over $10 Billion today. The total debt of the province, which includes Manitoba Hydro debt and other Crown Corporation debt, has grown from less than $16 Billion to well over $20 Billion since 1999. While other provinces have been fiscally responsible and preparing for a downturn of the economy, the NDP has been ignoring the advice of financial experts and has been increasing the provincial debt when economic times were good.
What do you do when you earn more money than you can use? You pay off your credit cards, pay down your mortgage, and put money into savings. What does the NDP government do? It finds ways to spend every nickel that comes in and then some. The NDP borrows more money, so that when there is a downturn of the economy, you as a Manitoban, has to pay more taxes to pay the interest. This is a fiscally irresponsible government.
