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What to Expect Pay-the-Rich Schemes by Borrowing Money from Private SourcesReports say another $100 billion will be added to the deficit in the Throne Speech, which is already approaching $400 billion. If this is the case, then the $500 billion deficit will be nearly 25 per cent of Canada's GDP. This amount is borrowed by the Government of Canada from private lenders of the financial oligarchy. It further concentrates wealth, power and control in fewer hands. This is a feature of state imperialism, that the financial oligarchy, the state and its agencies, including governments, defend and extend into every cell of the economy and society, the power, wealth and control of the oligopolies.
Much of the borrowed money is channeled back to the private lenders in interest and guaranteed payments as well as bailouts to their companies and in big government funded infrastructure projects, many of which are public-private partnerships, in almost every sector, such as the service sectors of education and health care, and the various levels of the police and military. Public health care is nowadays inextricably linked to making sure the financial oligarchy profits from much of the sector through selling pharmaceuticals and supplying, at a hefty price, whatever material hospitals require to function, including the buildings.
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The federal,
Quebec, provincial
and territorial governments collectively owed the
global financial
oligarchy around $1.3 trillion prior to the
pandemic. This amount has
risen dramatically with public borrowing from
private lenders during
the present crisis. The question has to be posed
forcefully: Why do
governments borrow from private lenders?