Personal vs. Government Finances
The government of the province of Quebec tabled its budget yesterday. Based on what I have read in various newspapers it seems that we have, once again, a government that seems to know only how to do one thing: increase taxes. Now I realize that the budget deficit is out of control and that the province's debt is extravagantly high. Yes something needs to be done. Basic finance tells indebted individuals that they must either spend less or find a way to earn more to get their personal finances back in order. Since earning more tends to be a harder for individuals then spending less, most of us (who actually choose to address the issue) will tend to spend less. Getting a higher paying job is not easy and can takes months or years. Salary increases are rarer today than they were in the past. So if you want immediate effect you spend less and you prioritize. So now let us look at government finances. It would seem that different rules apply. Apparently earning (hmm....bad ch...