There have been several news stories over the years about a phenomenon that pops up at Tim Hortons drive-thrus from time to time.
A driver pulls up to the window to pay their bill only to be told, “The car in front paid for your order.”
This act of kindness often repeats itself, with driver after driver choosing to pay for the car behind them. The record seems to be a staggering 228 cars in a row at a Tim Hortons in Winnipeg back in 2012.
After reviewing the Notley government’s recent budget, it seems they’ve flipped this concept on its head again this year. What Premier Notley has done is order a very large amount of coffee and doughnuts and told the drive-thru worker, “The car behind us will pay.”
Who is picking up the bill in the car behind them? Your kids and grandkids.
This year the Alberta government will again spend billions more than they’re expected to raise in revenues. When this happens the government has to pick up the phone and call the big banks in Toronto, New York and elsewhere and borrow the extra money to pay for their budget plan.
Over the next 10 or 20 years (depending on the length of the loans), the government will then make annual interest payments on the funds they’ve borrowed.
While some people will describe these loans as being similar to your mortgage, that’s completely false. Unlike your mortgage or your car loan, payments the government makes on it debt don’t actually chip away at the amount borrowed (the principal). The payments only cover interest costs.
Thus, once the 10 or 20 years are up, the initial loan either has to be repaid or the government has to borrow the money all over again.
You can see how this situation is especially unfair for your kids. While many young children are busy playing with Lego or finding a date for their local pre-teen dance, the Notley government is racking up debt these youngsters will have to pay for once they start paying taxes.
When her government took office, the province’s debt worked out to approximately $3,000 per Albertan. This year it will reach over $12,000 per person. However, her plan is to increase debt levels to $21,000 per person by 2023.
Perhaps the worst part about this entire situation is that there’s absolutely no need to increase the debt.
Next door in British Columbia, their government provides virtually the same government services – health care, education, highway repair, etc. However, British Columbia’s government provides the services for a much lower cost – they’re just plain more cost-effective.
If Alberta could get its expenses down to the same level as British Columbia’s government, we would have a balanced budget and there would be no need to increase the debt.
Sadly, instead of rolling up her sleeves and making tough budget choices, Premier Notley decided to order a lot of food and stiff the car behind her with the bill.
Try asking your kids or grandkids if they think that’s fair.
Colin Craig is the Alberta Director for the Canadian Taxpayers Federation
This column was published by the Edmonton Sun on March 27, 2018