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Originally Posted by SilentKnight
One thing I'll never understand - is how people say we have "a surplus". The principle amount of the national debt is still owed. All we've done is brought it down to where we have a little money left over after the interest on the principle is paid.
Its like having a $1000 Visa bill, making the minimum monthly payment, and having a bit left over for some Kraft Dinner.
I agree Martin's a good finance minister and he's done a good job with the federal purse strings, but saying Canada has a surplus makes it all sound more optimistic than it actually is. The country as a whole is still in debt up to its eyeballs.
SilentKnight
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Economics was not your forte ...
We have a surplus because our operating expenses are lower than our income, resulting in money left over ....
A company can declare profits, it doesn't mean they do not have debt.
Now, in your simplistic example, if the person didn't have a surplus, she couldn't make the minimum payment, hence her debt would grow ...
Simple no ?
BTW, in Quebec, we can vote Block... which I will. If I was in Canada ( lol ...) I would vote NDP to get themm to hold the balance of power.
