Canada posts 2004 Surplus

As reported in The Globe and Mail, the latest surplus marks the first time in Canadian history that the federal government has finished seven straight years in the black, a record unmatched by any other Group of Seven nation. As a result, the national debt stood at $501.5-billion at the end of the fiscal year, down from $560-billion in 1998 and the cost of servicing the debt fell by C$1.5 billion to C$36 billion, or to 19 percent of revenue - the ratio peaked at 39 percent in 1991.

Of course, large surpluses get lots of critics but in the end all Canadians will benefit as debt financing costs fall and more tax funds become available for public works (please note no mention of tax reduction). Of course, we really need to address health care funding and funding of cities.

In stark contrast, consider the current state of the economy in the US as deficits soar and government spending (by those anti-government masters, the Republicans) runs unchecked.