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massive debt payments is useless and is the easiest way to shed away those kinds of monies... thus why the lack of vision.
say, intrest rates is 5%, if they built a highway/train/whatever to alleviate congestion problem in Toronto, enhance productivity (and GDP), wouldn't that be better?
How about we add to the equation, that salaries and materials paid to build these, will remain for the most part in Canada and that the kicker is the taxation money coming back. 1 billion project, doesn't really cost 1 billion, its less. Why don't we spend the money on needed infrastructures instead of having to borrow the money later when we'll have no choice to build them. Its a good time for Canada right now, but it won't last forever.
Plus you're saying intrested saved could pay alot of stuff later, you're right! Canada already paid 86 billions on its debt, take away that 13 billion, and you have 73 billion already paid, at 5% intrest rates, those savings account to 3.65B$ a year which is a good chunk of that 13 billion. Why aren't those 3.65B$ spent on necessary things then?? it buys alot of subway stations and highway each year.
Finally, most of the intrest saved will be paid to Canadians which are the main debt holders, those intrest revenues are already taxed at 50%......and go back to the govt hehe.
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