Would you dip into your child’s registered education fund to pay the cost of going out to dinner or to enjoy a winter vacation? Not likely. To pay for rent or groceries? Probably.
On Dec. 7, a small number of MLAs will vote on borrowing another $1.4 billion to pay most households $1,000 and individuals $500, a promise made by Horgan in the recent election campaign.
Unlike the federal government, the B.C. government does not have the ability to print money to pay for its borrowing. The debt will have to be paid by taxes levied on our children and grandchildren.
B.C.’s provincial debt is $73.4B or $14,500 per capita. Prior to the election, the province was forecasting a deficit of $13.5B. Adding an additional $1.4B will bring the deficit to $15B, an additional debt of $3,000 per capita. B.C.’s total debt will increase to nearly $90B.
Horgan’s economic stimulus tactic is immoral and bad policy. It is immoral because it further worsens intergenerational inequity. Today’s B.C. citizens are already leaving a tremendous burden on the shoulders of our children and grandchildren. They are facing a grim future with enormous student debts, higher taxes, unaffordable housing, reduced job prospects and the economic and environmental impacts of climate change.
People who don’t need the money will likely add it to their savings. None of the money will go to productive investments or infrastructure that will benefit future generations.
If we are going to rob our children and grandchildren of $1.4B, shouldn’t we invest it in infrastructure that will contribute to today’s economy as well as benefit future generations?
No one has an issue with helping people hard hit by COVID-19 with a bit of cash relief. But, for those who don’t really need the extra cash, you might consider placing your windfall into a registered education savings account of one of the children that it was stolen from.