Friday, 18 April 2014

Spendthrift California Gets Awful Warning From Ontario's Debtpalooza.

Ontario's government has put its citizens into four and a half times the debt per capita of California.  California is almost a basket case.

The Fraser Institute reports:
The Golden State has gained international notoriety for its deficits and government dysfunction.....On every measure of indebtedness, Ontario is markedly worse than California.   Ontario’s debt is almost two-thirds larger than California’s bonded debt even though California is a much larger jurisdiction .... Specifically, California’s bonded debt is $143.9 billion as of 2011 while Ontario’s is $236.6 billion, two-thirds larger than California.      As a share of the economy, Ontario’s debt (38.6 per cent) is more than five times larger than California’s debt (7.7 per cent).   Ontario’s per capita debt ($17,922) is over four-and-a-half times that of California ($3,833). ...  Ontario spends a little over three times the amount of revenues on interest costs as California: 8.9 per cent versus 2.8 per cent. More specifically, Ontario spends roughly $10 billion a year on interest costs, about $750 per Ontarian per year just paying the interest on already accumulated debt.

Remember Bob Rae?
This is not just a Wynne-lose scenario.

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