Thursday, July 9, 2026 Every July, a wave of federal benefit payments resets for the new benefit year — and 2026 brings one of the biggest shifts in years. Between a permanent 25% boost to the old GST/HST credit, a fresh Canada Child Benefit increase, and the largest quarterly OAS bump of the year, millions of Canadian households will see different numbers land in their accounts this month. Here's what actually changed, and what to check in your own CRA account. The GST/HST Credit Has a New Name — and a Bigger Payout The GST/HST credit has officially been replaced by the Canada Groceries and Essentials Benefit (CGEB) . It's not a new program from scratch — it runs on the same CRA infrastructure and eligibility rules — but the payment amounts are 25% higher, and that increase is locked in for five years. The first CGEB payment went out on July 3, 2026. Under the new structure: A single individual with no children can receive up to roughly $679 per year (about $170 per quart...
Navigating the U.S. Debt Tightrope: Balancing Growth and Sustainability
Even if the U.S. avoids worst-case scenarios, its ballooning debt and the cost of servicing it could eventually slow economic growth and make the burden unsustainable. According to a former International Monetary Fund (IMF) official, the U.S. must tread carefully to maintain a delicate balance.
Here are the key points:
Debt Levels: Debt held by the public is already around 100% of GDP, and projections indicate it will climb to 116% in 2034, 139% in 2044, and 166% in 2054. While these levels may seem alarming, Japan’s experience shows that an advanced economy can manage substantial debt when borrowing in its own currency.
Advantages and Risks: The U.S. benefits from dollar dominance, deep financial markets, and Federal Reserve support for Treasuries. However, institutional breakdowns remain a threat. For instance, concerns exist about U.S. debt default under certain scenarios.
Interest Obligations: As the debt ratio rises, meeting interest obligations could force the federal government to cut discretionary spending. This reduction could negatively impact economic growth. The U.S. must balance interest payments and maturing Treasury bonds.
Challenges Ahead: Rising bond yields and the outlook for higher interest rates pose challenges. Treasury Secretary Janet Yellen acknowledges this difficulty in controlling deficits and debt expenses.
Trade-Offs: To sustain debt, the U.S. faces trade-offs. Borrowing more to pay off debt could exacerbate the burden, while cutting spending on critical initiatives might hinder growth.
In summary, the U.S. walks a tightrope between debt sustainability and economic growth. Striking the right balance is crucial for a prosperous future.
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