Should your child pay to attend school?

  • Jul. 2, 2014 4:32 p.m.

Here is a question to seriously think about – do you think that your five-year-old child should pay to attend their own school? But since your child can’t afford it yet, don’t worry, we’ll just keep the bill and charge interest until they can.

If you said yes, then you will love Jim Prentice for leader of the PC Party and premier of Alberta.

At a recent Chamber of Commerce breakfast in Calgary, Prentice said he wants the province to borrow money to build new schools.

Borrowing for capital projects is no different than having your child take on debt themselves so they can pay it back plus interest when they are adults.

You will hear things on how businesses and home owners take on debt and mortgages but don’t be fooled by the accounting trick that politicians are too often using these days.

Business owners take on debt for expansion in order to generate more revenue and build equity that eventually can be sold.

Homeowners also are building equity that can eventually be sold.

What equity does the government plan on selling? What income is the government plan on generating by this borrowing?

Interest rates are traditionally charged at a larger rate than inflation, which is how banks make money.

This means that if the government waited and saved instead of borrowing, and the price to build went up, it would actually be cheaper to buy it with the savings then it would be to borrow and buy it now because inflation is lower than the cost of borrowing.

The only true reason governments borrow for capital spending is to get votes today. There is no planning involved and there is no financial management thought out. It is completely driven by the need for votes, plain and simple.

Do I want my five-year-old to take on debt today so she can pay for it as an adult (plus interest)?

Simple answer – no.

Cory G. Litzenberger

Red Deer

Just Posted

Central Alberta Humane Society presents cat yoga

Proceeds will be used to care for the shelter animals

Innisfail RCMP respond to fatal vehicle collision

A 22-year-old driver was ejected and pronounced deceased on scene

Central Alberta Buccaneers pillage Vandals 64-19

Bucs’ notch second win of the season convincingly

Young man from Tees dies in tragic collision

The incident occurred early Saturday morning at Clive

WATCH: Lots of action this year at the Innisfail Pro Rodeo

Rain doesn’t stop crowds from cheering on some of the best in rodeo action

Leduc RCMP investigate small plane crash

No injuries after plane crashes in lake

Sweden beats South Korea 1-0

Sweden gets benefit of video review in World Cup

Blue Jay Roberto Osuna not expected to appear in court

The Blue Jays pitcher is charged with one count of assault by Toronto police

Global warming cooks up ‘a different world’ over 3 decades

Over 30 years the world’s annual temperature has warmed nearly 1 degree according to the National Oceanic and Atmospheric Administration

Family separation policy starts dividing Republicans

Deep concerns arise over the child separation policy in the U.S.

Strong earthquake in Japan kills 3

The magnitude 6.1 earthquake that struck the area early Monday near Osaka

Police: Taxi driver who hit 8 Moscow pedestrians fell asleep

Two Mexican World Cup fans were among those hit

From marijuana beer to pot cookies, Canadian companies creating cannabis edibles

Manufacturers think that edibles will do well with users who don’t want to smoke or vape

Most Read