A groundbreaking new study from the Fraser Institute reveals a potentially game-changing solution to boost the average Canadian worker’s income: reduce government debt. The research, published on June 24th, suggests that by bringing government debt-to-GDP ratios back to pre-pandemic levels over a five-year period, average worker incomes could see a significant increase of approximately $2,100 annually.

The study’s key finding points to the detrimental impact of government deficits and debt on labour productivity. Author Ergete Ferede highlights the crucial role productivity plays in improving living standards and driving economic growth. Essentially, the argument is that excessive debt acts as a drag on productivity, negatively affecting the financial well-being of Canadians.

This isn’t just about numbers; it’s about real-world impact. Imagine the possibilities: $2,100 extra per year could significantly improve financial stability, allowing families to cover essential expenses, pursue educational opportunities, or simply enjoy a higher quality of life. The study’s implications are profound, sparking crucial conversations about Canada’s fiscal policy and its long-term effects on its citizens.