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RedDeerGuy1's avatar

What is to stop a country from racking up debt again after its paid off?

Asked by RedDeerGuy1 (24462points) June 29th, 2021
3 responses
“Great Question” (0points)

In Alberta 25 years ago we paid off all of our debt by squeezing the citizens, and they passed a law banning ever going into debt again.

Two years ago the majority UCP (United Conservative party) provincal government just removed or ignored the law and racked up $10—$100 billion of debt.

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zenvelo's avatar

First of all, Alberta is not a country.
And $10 billion to $100 billion is quite a range; which is it?

The provincial government has taxing authority, so the debt . Your post does not cite any news about how the debt will be paid, or what it is used for.

RedDeerGuy1's avatar

As of 2019 Alberta’s debt was $85.9 billions dollars. The rest of your questions I do not know. Might have been low oil and natural gas revenues.

Does any jurisdiction have a no debt amendment to their constitution other than Edmonton Alberta Canada. Edmonton has a law banning debt.

zenvelo's avatar

Almost all jurisdictions have a balanced budget requirement, but that includes borrowing money to pay for things. That is what bonds are for.

Here are some facts on Edmonton’s borrowing
https://www.gov.edmonton.ab.ca/city_government/documents/PDF/Debt_Fact_shee_(1).pdf

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