Canada’s growing debt isn’t just a problem for governments; it could shape the future for younger generations.
Sabrina Maddeaux and Mike Moffatt explore how government debt, Old Age Security (OAS), and spending choices shift wealth between generations. They discuss whether wealthy seniors should receive full OAS benefits and how younger Canadians may be paying more through higher taxes, housing costs, and rising debt.
While not all debt is harmful, borrowing for long-term investments like infrastructure, transit, housing, and energy can be beneficial, borrowing to sustain costly programs is more controversial and raises questions about long-term fiscal sustainability.
The key question: Is Canada placing too much of the financial burden on younger generations?
Topics covered:
• Canada’s rising public debt and interest costs
• Old Age Security (OAS) and wealthy seniors
• Intergenerational wealth transfers
• Why government debt is rarely fully “paid off”
• Infrastructure investment vs. program spending
• The Gordie Howe Bridge and public investment
• Inflation, money creation, and debt
• Housing, taxes, and affordability for younger Canadians
• OAS reform and fiscal trade-offs
Chapters:
01:28 OAS: The $100 Billion Problem Hiding in the Budget
02:09 Why Wealthy Seniors Still Get Old Age Security
03:28 When Government Debt Is Actually a Good Thing
05:29 Who Should Pay for Infrastructure That Lasts 100 Years?
06:00 The Gordie Howe Bridge and the Case for Government Debt
06:53 The Truth About How Government Debt Gets Paid Off
08:49 Why Canada’s Growing Debt Still Matters
09:16 How Government Debt Can Fuel Inflation
10:18 What Happens When Governments Can’t Borrow?
11:38 Why Deficits Are Especially Dangerous for OAS
12:08 Should Canada Cut Old Age Security?
13:10 Are Younger Canadians Giving Up on Canada?
13:58 There’s No Easy Way to Fix the Intergenerational Wealth Gap
14:55 Why Younger Canadians Want Lower Taxes
16:20 Why Tax Cuts Aren’t Fixing the Generational Divide
16:46 When Government Debt Makes Sense—and When It Doesn’t
Research/Links:
As Canada faces crippling debt, it must do the unpopular thing and cut elderly benefits
https://www.theglobeandmail.com/business/commentary/article-canada-debt-cut-elderly-benefits/
Scott Gallowy Short:
https://youtube.com/shorts/PAAbLq1bJY0?si=9-Z06rW1H8tiQW-k
Canadian taxpayers face up to $3,348 each in government debt interest
https://www.wealthprofessional.ca/news/industry-news/canadian-taxpayers-face-up-to-3348-each-in-government-debt-interest/392762
The Burdens of borrowing: Government debt and intergenerational fairness
https://www.if.org.uk/2025/01/28/the-burdens-of-borrowing-government-debt-and-intergenerational-fairness/
G7 debt is now a pressure point for anxious markets
https://www.reuters.com/world/china/g7-debt-is-now-pressure-point-anxious-markets-2025-06-03/
The evolution of federal debt interest costs in Canada
https://www.fraserinstitute.org/commentary/evolution-federal-debt-interest-costs-canada
Canada’s combined federal-provincial government debt estimated to surpass $2.4 trillion in 2025/26
https://www.fraserinstitute.org/studies/growing-debt-burden-canadians-2026-edition
Intergenerational Injustice in Canadian Public Finance
https://www.gensqueeze.ca/intergenerational_injustice_in_canadian_public_finance
Hosted by Mike Moffatt & Cara Stern & Sabrina Maddeaux
Produced by Meredith Martin
Funded by the Neptis Foundation https://neptis.org/