Quebecois also believe that it would be economically beneficial for Quebec if they were to secede from Canada because of Quebec political parties.
In 2016, a new anglophone sovereignists group in Quebec, called the “Anglophone for Quebec Independence, AQI, presumed that the Quebec independence will enable Quebec to act as an equal partner on the global stage in their own terms. The AQI also stated that the money that was sent to the federal government could be used to boost funding of health, education, and other province-wide projects in Quebec (PostMedia). Nevertheless, a 1997 publication called “The Secession of Quebec and Future of Canada” (Young) and The Globe and Mail Article, “The Staggering Price of Quebec Independence” (Ragan) argues otherwise. These two sources highlight the facts that Quebec will face economic risks of currency and monetary aspects, loss of federal benefits and debt issues.
Firstly, if Quebec secedes from Canada, Quebec could choose to continue to use the Canadian dollar. However, it would have no monetary policy to stabilize the economy. Quebec could also choose to create a new currency and bank. Even though Quebec could choose a new currency, the uncertainty of the market and market pessimism would likely create a large depreciation, which would cause the debt in Quebec to rise. Furthermore, if Quebec separates, Quebec would not receive equal federal benefits and responsibilities from Canada. In 2013, the net debt in Quebec was $175 billion which was equivalent to 49 percent of the provincial gross domestic product (GDP) (Mckenna). Before seceding, Quebec would need to be responsible for its share of federal debts and assets.
This would increase the debt-to-GDP ratio and place Quebec in a huge debt. Quebecers will also not receive benefits from federal programs, such as Employment Insurance and Old Age Security. Once Quebec secedes, it could be taken into consideration that the Quebec government could replace the benefits that were previously provided, but due to the separation, there would be no financial support, placing a budgetary hole on the Quebec government.
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