Markets, Price Wage Controls, Welfare Cheques and The Canada Emergency Response Benefit (CERB), The coming cashflow crisis – December 22, 2020,
As of December 22, 2020, we’re still in the eye of the COVID-19 storm, money doesn’t matter, the housing market crashed and it’s an afterthought, the auto loan market crashed and it’s an afterthought, the rental market crashed and it’s an afterthought and most importantly the job market in Canada crashed and it’s an after thought.
This is of course the beauty of a fiat monetary system, why didn’t society think of this sooner? Why is it that in 3rd world countries when they have natural disasters the effects of their economy are immediately felt, whereas we privileged in the West need not worry? The economic damage of ebola on Africa hit their economy like a ton of bricks, even with ebola being far deadlier than Covid-19 could ever be, the Africans who have no welfare state, still had to go to work and earn a living.
Not us in the West, we were told to stay home and get paid for it, because we’re far more progressive, correct? We must assume that we’ve solved economic problems with fiat money, if there’s a disaster the answer is simple for us, borrow more money, after all, there is no inflation, right? let’s ignore those mortgage and rent deferrals, the government fixed that problem, Canadians are saving more remember?
The cost of wage and price controls is that eventually if these schemes work, none of the financial numbers make any sense and most of the experts follow the data that coincides with their beliefs of what is happening. When I think about The Canada Emergency Response Benefit (CERB) my mind wanders into EXISTING Provincial Welfare programs in which non-productive people have been consuming more than they’re producing for YEARS!
Now, as everyone knows, the government program that makes all of this work is INFRASTRUCTURE spending, if you build it and maintain it they will come. We have a solid electrical grid, good roads, and a great standard of living, which all revolves around taxes that pay for things we tend to ignore in our lives of luxury.
I’d rather be on welfare in Canada than be a middle-class person in Venezuala, right? So what then is the complaint? Why can’t the private sector manage its own risks? Why does the government have to intervene, when the unexpected occurs?
The answer: It’s because our government is too big, I get it that some people find it hard to believe that politicians can be bought and paid for, but it does happen A LOT.
I think deep down everyone knows the Canadian government is too big, but there’s no will to shrink it. During this pandemic, a lot of government workers aren’t doing anything and are actually working remotely, which should also signal that a lot of money the government spends on commercial real estate should be stopped immediately.
A lot of government workers aren’t doing anything and still being paid and most Canadians don’t even notice it. Now in the long term, a lot of the people dependent on the government for a paycheck need not be financed, because if we took them off the government payroll, nobody would notice. In 2019 Justin Trudeau created a new government job, the Minister of Middle-Class Prosperity? Her annual salary is CA$269,800 ?
Now as ridiculous as that sounds, there are tons of these government positions all over Canada. If you divide $269,800/2000(CERB) you get 11 people! the Minister of Middle-Class Prosperity salary equates to 11 people on CERB who are receiving $2000 a month for a year.
Now, it hasn’t been a year for people on CERB, so they won’t get $24,000, but I used that example to illustrate how wasteful government is. When the cashflow crisis occurs it should be obvious who the culprits are, does Mona Fortier make the lives of the middle class better? Of course not, what part of the middle class does Mona Fortier represent? Obviously not Western Canada, because in Western Canada Trudeau is bombarding their middle class with a FOREIGN-created carbon-tax.
So is Mona Fortier looking out for the well being of these people? Is she knocking on doors making calls and asking all Canadian how they feel about Carbon Taxes? Of course not, why should she, her salary is based on being productive, her salary is based on Canadian turning a blind eye.
Mona Fortier was sworn in on November 19, 2019, which means she’s already cleared CA$269,800 during a period that has been the most devastating on Canada’s middle class in Canadian history?
I have heard her say nothing about carbon taxes? what is she doing? why do we need her or her position? If you ask me, I’d tell you she’s on welfare, she’s not maintaining the infrastructure of this country, she’s not building or maintaining anything, in her first year she’s been a complete failure, yet she was rewarded CA$269,800? She is getting Welfare and whenever I think of CERB my mind wanders into Welfare.
If people who wanted UBI weren’t so silly, they’d see that their path for UBI could be achieved by simply shrinking the size of the government, mortgage and rent deferrals all of these corporate bailouts, all of that money wasted could have been 5 years of Universal Basic Income! especially if all they wanted was $1000 per month!
Yet, instead what’s going to happen first is the coming cash flow crisis, in which the people who couldn’t qualify for a loan will have to pay for the debts of the people and entities that borrowed beyond their means.
Interesting times ahead!