Canada Facing Largest Deficit In Developed World

[PartTimeCatdad 588]

US deficit is projected to reach 18.5% of its economic output.   (https://www.google.ca/amp/s/mobile.reuters.com/article/amp/idUSKCN21V1TA) 

Canada instead holds the largest change in spending, not the largest debt to GDP ratio. 
 

I don’t understand the resistance against govnt spending. Sure, it’s a spike, but the liberals have used to support small- medium sized businesses, workers and students during a global economic shut down.

Id be mad if my govnt didn’t do its job to stabilise the economy and support tax payers during a time of crisis.   

[Economy 52,919]

@Maleficent updated to 16%

[Maleficent 6]

2 minutes ago, Economy said:

@Maleficent updated to 16%

I don’t even know what the proper reaction is. I’m just laughing now 

[Economy 52,919]

Just now, PartTimeCatdad said:

US deficit is projected to reach 18.5% of its economic output.   (https://www.google.ca/amp/s/mobile.reuters.com/article/amp/idUSKCN21V1TA) 

Canada instead holds the largest change in spending, not the largest debt to GDP ratio. 
 

I don’t understand the resistance against govnt spending. Sure, it’s a spike, but the liberals have used to support small- medium sized businesses, workers and students during a global economic shut down.

Id be mad if my govnt didn’t do its job to stabilise the economy and support tax payers during a time of crisis.   

I'm perfectly fine with the government doing stuff like this now in times of emergency

 

I just don't trust them that they are going to take financial responsibility seriously enough as time goes forward

 

Since Trudeau was elected in 2015 every financial plan got replaced with a more lax one. 

 

First it was deficits of no more than $10 Billion a year for 4 years. Then that doubled to nearly $20 Billion, then they eliminated the goal of eliminating the deficit entirely as the deficits have grown

 

I understand if they had to break their word because of unexpected downturns. But that wasn't the case. The economy was a decade into the expansion and unemployment at a 40 year low so what was the excuse exactly?

 

I get not everything about the economy was perfect but it rarely is. You can't keep waiting for perfect circumstances all the time to be responsible with the nation's money

 

So my issue is given Trudeau's and his parties pattern with how they see finances, I'm not sure I trust him that as things stabalize he's going to take the budget seriously enough

[Economy 52,919]

3 minutes ago, Maleficent said:

I don’t even know what the proper reaction is. I’m just laughing now 

I can accept a deficit this high if it truly is temporary to stabilize things in a time of emergency and when thing get better they get serious about getting finances in order

 

But I'm 90% sure Trudeau won't. We will be lucky if at the peak of the next business cycle the deficit falls to 3% of GDP if he's still in power and with the same attitudes 

[Maleficent 6]

Just now, Economy said:

I can accept a deficit this high if it truly is temporary to stabilize things in a time of emergency and when thing get better they get serious about getting finances in order

 

But I'm 90% sure Trudeau won't

Trudeau isn’t gonna do sh*t after this Covid thing is over.

He’s just gonna parade around the fact that he “beat the virus” and made sure “every canadian had food on their table during it”.  

I have 3 passports (UK, Canada, America) and I’m not proud of any of my countries rn 

[Economy 52,919]

14 minutes ago, Maleficent said:

Trudeau isn’t gonna do sh*t after this Covid thing is over.

He’s just gonna parade around the fact that he “beat the virus” and made sure “every canadian had food on their table during it”.  

I have 3 passports (UK, Canada, America) and I’m not proud of any of my countries rn 

If he takes credit for beating covid Nnnnnnnnnnn

 

Here in Canada the entire operation was very decentralized, the vast majority of restrictions were decided by Provinces not the Federal Government

 

Obviously the feds were involved in some stuff including border closures but they weren't calling the majority of the shots

 

[Delulu Rogers 7,668]

Never liked trudeau. Hope he gets voted out  

[Economy 52,919]

3 hours ago, March34th said:

the emergency fund was only good to an extent. it didn't include people who made less than i believe it was 6k in the last year, so people like me who have had trouble with jobs or income didn't qualify.

while i believe it was great for the government to do this because we are in housing and job crises across the country, it should have applied to all adult canadians, not just the middle class or well off people. so many were left below the water when this hit.

I don't think it was targeted at middle class specifically. The issue of failing to qualify for it for not having the right circumstances affected middle class people just as much as well. There was a lot of issues with contractors as well I don't know if u Remember that issue especially in stuff like Construction or Entertainment or gigs where many contractors are self employed and considered a business

 

In fact considering it was a flat $2000 a month I think it was actually extremely progressive. Very low earners in some cases made more with the benefit than when they were working whereas ppl who made more money had to take a reduced pay. It wasn't set up as a % of your former income like normal unemployment benefits usually are, everyone who qualified for it got the exact same whether you were a high income earner or low income earner

 

So I don't think the issue has anything to do with middle class or low class. In fact considering the services sector lost the most jobs (and they are not good paying jobs in most cases) I'd almost bet my life on it that a disproportionately high number of people on the CERB benefits were actually lower income not higher income

 

The bigger issue I think is that a rushed program failed to take a lot of circumstances into account

 

I myself was in an awkard situation because I had been laid off right before pandemic (and because unemployment and low the moment I lost my job I wasn't entitled to many weeks) and almost right after my lay off everything went to sh*t and because I had EI I didn't qualify for CERB but I only had 12 weeks (the weeks u get is determined during time of EI application, the fact that unemployment surged right after did not grant me more weeks)

 

Long story short in my situation I didn't qualify for CERB either and I had to scramble to find work, any work. I was sending like 5 applications a day cuz finding a job when unemployment is like 14% and businesses in shut down is nearly impossible

 

 

 

[PartTimeCatdad 588]

You’r right to point out the fiscal targets that liberals repeated renegade on, but I think there is a real reason for govnt investment despite record low unemployment. Before 2016, Canadian businesses had all access to US’s economy, but since the US tariffs, new NAFTA, and trump’s corporate tax cuts . For the first time, Canadian business needed to be hold serious comparative advantage against US business. 
 

And also I would love to see CAD economy switch away from relying on the housing market and resource extraction to value-added services (info tech, sustainable tech.. there’s were the growth is heading)