Discussion · Government Orders
Steven Bonk Conservative
“When a government borrows too much money, it causes higher inflation and higher interest rates. Why does the government keep borrowing money when it cannot back it up?”
“Mr. Speaker, I have a lot of respect for my hon. colleague across the way because I know he was the Liberal finance minister in Quebec and helped that province come out of a very dire situation. I also know that we both worked on treasury boards in our respective provinces. When a government borrows money and increases the amount of money supply in the province or in the country, it is inevitably going to drive up inflation, which is also going to drive up interest rates, which makes it more difficult to borrow on bond markets. Can the member explain what the rationale is for the government to keep borrowing and borrowing, with nothing to back it up?”
Official Hansard
Mr. Speaker, I have a lot of respect for my hon. colleague across the way because I know he was the Liberal finance minister in Quebec and helped that province come out of a very dire situation. I also know that we both worked on treasury boards in our respective provinces. When a government borrows money and increases the amount of money supply in the province or in the country, it is inevitably going to drive up inflation, which is also going to drive up interest rates, which makes it more difficult to borrow on bond markets. Can the member explain what the rationale is for the government to keep borrowing and borrowing, with nothing to back it up?