Canadian Economic Data

GDP or Gross Domestic Product & Real GDP Growth (1999):  $952.7 billion   &   3.5 %                    (Statistics Canada)

Real (after inflation) GDP Growth from 1960 to 1995:  2.3 %   (1.8 % for U.S.)                         (OECD Historical Studies)

The Federal Debt (1999):  $586.8 billion  or  61.6 % of GDP   (was 131 % of GDP in 1946   and   22 % of GDP in 1975)

Annual Interest on the Federal Debt (1999):  7.1 %   or   $41.7 billion   or   4.4 % of GDP   (was 2.2 % of GDP in 1975)

Annual Interest on Ontario Public Debt of $114.1 billion (1999):  7.9 %   or   $9 billion

Total Public Debt, i.e. federal + provincial + municipal debt (1999):  approx $800 billion   or   $26,600 per Canadian

Portion of Federal Debt that is Held by the Bank of Canada*:   6.7 % (1996)  and  20.8 % (1975)

Portion of Federal Debt that is Privately Held (1996):  93.3 %  (68.2 % by Canadians & 25.1 % by non-residents)

¶ Annual Interest on Total Public Debt (1998):  $77 billion   or   9 % of GDP   or   $2500 per Canadian **

¶ A study by Statistics Canada in 1991 revealed that the $400 billion federal debt was due to:

         Interest Payments on the Federal Debt:                        50 %

         Tax Breaks to Corporations and Wealthy Individuals:    44 %

         Government Spending on Social Programs:                    3 %

         All Other Government Spending:                                   3 %

The Money Supply (1999) & Inflation                            (Statistics Canada)

Government Created Money (bills & coins, i.e. cash):  approx $36 billion                                   Note: no interest attached

¶ Bank Created Money, i.e. Bank Credit:  $557 billion  (94.6 % of total)                 Note: created with interest attached

Total Money Supply:  ($36 billion – $3.893 billion ***) + $557 billion = $589.1 billion

Average Annual Inflation from 1995 to 1999:  1.3 %

The Chartered Banks: The Royal Bank, The Bank of Montreal, CIBC, etc.

Total Bank Assets:  $1392.9 billion                                                             (from Bank of Canada Review for June 1999)

Cash (bills & coins) in bank vaults:  $3.893 billion                                        (from Bank of Canada Review for June 1999)

¶ Banks' Leverage:  $1392.9 billion ÷ $3.893 billion = 358                (i.e. banks create $357 of credit for every $1 of cash)

Tax Revenue

Total Government Tax Revenue (1996):  $297 billion  (Personal: 37.7 %; Corporate: 9.0 %; GST: 24.7 %; Other 28.6 %)

Tax Revenue as a Percentage of GDP (1994):  35.1 %  (US: 28.4; Britain: 34.5; Germany: 38.4; France: 43.7; Denmark: 49.9)

¶ Total Federal & Provincial Tax Paid by the Average Family (1998):  $12,490  (20.1 % of pre-tax income of $62,116)

¶ Total Federal & Provincial Tax Paid by Families with Incomes over $300,000 (1996):  14.4 %

Percentage of Federal Revenue from Taxes on Individuals:  19 % (1961)   and   31 % (1998)

Percentage of Federal Revenue from Taxes on Corporations:  14 % (1961)   and   7 % (1998)

Percentage of Canada's Total Tax Revenue from Taxing Wealth:  .03 % (3.06 % in Switzerland)

Distribution of Income, Wealth & Household Savings          (Statistics Canada)

                                                          Income (1996)        Wealth (1999)        Financial Wealth (1984)        Savings (1996)

Richest 20 (50) percent of Canadians:          43 %               70 % (94 %)                 75 %                              84 %

Poorest 20 (50) percent of Canadians:          5.1 %               .1 % (6 %)                    –                                 None

¶ Richest 1 percent of Canadians (recent survey):                 25 % (38 % in US)        40% (47 % in US)            –

The Stock Market (1997)

Percentage of Stocks Held by:  (Direct/Personal: 60.3 %; Pension Funds: 12.3 %; Mutual Funds/Personal 9.2 %; Other 18.3 %)

Percentage of Canadians Who Hold Any Stocks:   10 % (directly)   and   37 % (with pension funds included)

¶ Percentage of Stock Held by Richest 10 % of Canadians:  Not Available   (82 % for same group in US)

RRSP Contributions (1995)

Approx Percentage of Canadians Making More (Less) Than $80 Thousand Who Contributed:  100 %   &   (25 %)

Approx Percentage of $20 Billion Government RRSP Subsidy Captured by the Richest 11.7 % of Canadians:  60 %

* (Note: the interest on this portion is paid as a dividend to the government which is sole shareholder of the Bank of Canada)

** (Note: The mark ¶ draws attention to the obvious injustice and inequality inherent in modern economic practice)

*** (Note: The $3.893 billion in bank vaults is not considered to be part of the money supply because it lies idle)