Bureaucracy, Democracy, Elections, and Economics 

Three weekends, three elections! Municipal elections last weekend, provincial elections this weekend, and the US midterms the following week. That’s a lot of politicians making a lot of promises in a very short period of time!

And while the candidates and political parties may differ, there seems to be one common theme capturing everyone’s attention: the economy, government spending, and the growing mountain of government debt.

Which raises an interesting question: When did we decide that continually spending more than we earn was a sustainable financial strategy?

It’s certainly not something we recommend to our clients!

Of course, government finances are more complicated than household finances. Governments can borrow over much longer periods, raise taxes, and invest in things that benefit generations. Borrowing to build infrastructure or stimulate economic growth can make good financial sense.

But there’s a difference between borrowing to invest in our future and borrowing simply to maintain our current lifestyle. And increasingly, that distinction seems to be getting lost.

Perhaps the greatest challenge is that democracy operates on election cycles, while economics operate on much longer timelines. Politicians focus on the next election, but the financial consequences of today’s decisions may not become apparent for decades.

Governments have become remarkably comfortable borrowing prosperity from the future to make life more comfortable today. The problem, of course, is that eventually the future arrives!

So, should we be worried about what this means for our investments?

Concerned and attentive? Absolutely. Panicked? No.

History has demonstrated that economies and financial markets can be remarkably resilient. Governments change, policies evolve, and businesses adapt. Over time, investment returns are driven more by corporate profitability, innovation, and economic growth than by who wins the next election.

But we should not be complacent. Growing government debt can eventually mean higher taxes, pressure on public services, inflationary risks, or slower economic growth. None are particularly appealing prospects.

Which brings us back to the importance of thoughtful financial planning.

We can’t control government spending, or the next economic surprise. But we can control how we save, invest, diversify, and prepare for the future.

And unlike governments, we don’t have the luxury of passing our personal financial obligations along to the next generation!

Ultimately, our goal remains the same: to help you build and maintain the financial security to enjoy your life, support the people you care about, and pursue the experiences that make life meaningful.

As for the politicians, I wish them well. I just hope that once the elections are over, a little more attention gets paid to the mathematics and a little less to the promises.

Because, whether you’re managing a household budget or a country’s finances, eventually the numbers have to make sense!

I am a strong believer in democracy and the importance of exercising our right to vote. It’s a privilege we should never take for granted. Regardless of political views, participating in the democratic process is one of the best ways we can help protect it. So, if you have not already voted, I encourage you to get out this weekend and make your voice heard!

All the best,
Bryson