We have a financial dependency with our federal government that relies on it to manage finances prudently, writes Peter Watson.
Financial planning advice meant to help Canadians in today’s changing world of tariffs very much includes the actions of our government.
In addition to tariffs, we are entering the unknown word of artificial intelligence and are unsure how many Canadians will lose their jobs and need government financial support.
Our government more than ever needs to be financially strong. Just like Canadian households, it must be prudent and live within its means.
I suggest an idea that will likely never happen, but I think it should be said. Elected members of our government should spend money as if it was their own. If they want to risk another billion dollars with Canada Post, they should take that money from their own pension fund future benefits.
In a perfect world, we want our government to spend money as if it were their own. Business corporations have that reality. If they mismanage their finances, including overspending, those firms go bankrupt.
That is what should happen. Unfortunately, with our federally elected House of Commons, we do not have that luxury.
We are entering a period of difficult times in the ever quickly changing world.
In the future, many Canadians will need financial support from Ottawa. If we waste money now, financial assistance in the future, when it is most needed, could be financially impossible.
Dear federal Members of Parliament, Canadians have an important financial partnership with you … So please do not let us 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.
