Government spending should constantly evolve to reflect the needs of Canadians, writes Peter Watson.
In conversations about government spending, it’s surprising how often I hear the same response. The government spends the way it does because that is the way it always has.
You seldom hear that response when you’re talking about a business because a business that thinks that way will cease to exist or already has.
Our government provides important benefits, which should be based on the priorities of Canadians. We hope that as our priorities evolve and change then government spending will also evolve and change.
Two ways our government spends money that citizens complain about is maintaining a Postal Service that is functionally obsolete and has been so for years. Then there are the school systems: Should Ontario continue to have two separate school systems?
There should be ongoing communication between the government and Canadians as to what is important. Current-day priorities are health and housing. That is where additional spending would be welcome.
My personal preference would be additional funding for post-secondary education. Our brightest young adults should not leave higher education because of lack of funding. Funding should also be increased for those pursuing trades, which is a national priority.
The tariff trade war started by the US has energized Canadians to want to become more financially independent from our neighbour. We are thinking boldly and implementing our new bold initiatives will require funding.
We are looking ahead to a brighter future. We must be smart the way we spend government funds; meaning that every year we must reevaluate historic spending to see if our limited resources can be used in other strategically important and desired ways.
Government overspending, both federally and provincially, just adds to our enormous debt. If that continues our delicate financial house of cards might come crumbling down.
Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com
