Canada Emergency Response Benefit provides $500 a week for up to 16 weeks – April 8, 2020
I prefer deflation over inflation, I prefer the market figuring these downturns out, but what’s done is done and quite frankly, I think Canada’s Canada Emergency Response Benefit is structured better than America’s is. With that said I worry about Canada’s productivity more than I’d worry about America’s.
Canadians are straddled with more regulations and higher costs to do business than Americans are and this is where the Canada Emergency Response Benefit might face some challenges. In 16 weeks a person can expect to get $8000 and
current eligibility is as follows:
Who is eligible
The benefit will be available to workers:Residing in Canada, who are at least 15 years old;
Who have stopped working because of COVID-19 and have not voluntarily quit their job or are eligible for EI regular or sickness benefits;
Who had income of at least $5,000 in 2019 or in the 12 months prior to the date of their application;
and Who are or expect to be without employment or self-employment income for at least 14 consecutive days in the initial four-week period.
For subsequent benefit periods, they expect to have no employment or self-employment income.
Any form of stimulus only works if infused produces positive results. So as an example If I lend someone $10 and I get back $20 somewhere down the line from that individual than lending that individual $10 was worth it. However, if I lend someone $10 and I get back an amount less than $10, well my deficit starts to mount higher.
The power of government is in the modern era as the power of printing money, but printing money has its limitations, namely productivity, one a recession hits, what it means is people are hoarding money and will only spend that money if they’re incentivized to do so.
Furthermore, the most entitled are often the poorest, and once a recessionary environment is created, it’s not the wealthy that have to deal with the economic problems created by the government it’s the poor and middle class as their purchasing power is less and less.
Money regardless of what commodity it’s back by revolves around its citizens’ ability to repay debt. As inflation gets higher and higher, it becomes easier and easier to find yourself in bankruptcy. Anyway, happy thoughts, happy thoughts! Good luck with your free money Canada, I want absolutely nothing to do with it!
Interesting times ahead!