Canada’s counter-tariffs are affecting Hundreds of Canadian businesses – September 17, 2018,
In the world of business, it’s often impossible for a government to relate to problems facing Canadian small businesses. When the government says they will give a business free money, usually what they’re saying is they’ll loan a business some money, and they’ll lone this business this money based on the terms set by the government. The government, of course, will be justified in delaying payments to small and large businesses, because you know how it is with the government, they have to make sure that you qualify for money first because if they simply give out money to the businesses who ask for it this too will be a problem.
You’ve often read about telling my readers why Government is inefficient at redistributing income, well this is one of the reasons why, before money is given to these businesses, this money must go through the bureaucratic process. Businesses hate bureaucracy because it doesn’t allow them to anticipate earnings and losses. Because if lets say the business was promised $1 million dollars from the government, that businesses future investments will be based on the money they expect to receive, if it comes to the businesses attention that this money the government promised may not be arriving in the time promised, small businesses will often cut production, limit investment, restructure how they do business or simply declare bankruptcy. What I’ve been saying is that America isn’t that far away from Canada. American and Canadian IQ’s are relatively the same, we both speak the same language and quite frankly the U.S has more tax-friendly States than Canada has tax friendly Provinces.
What makes Canada competitive next to the U.S was the lower Canadian dollar, however, Trump’s trade war put a stop to that. Being that Canada is more reliant on the U.S than the U.S is on Canada this is quite frankly an easy win for Donald Trump. The longer this trade war lasts the worse it is for Canada. I’ve said over and over and over again. I hope the Canadian economy crashes or deflates, but based on the actions of the left-leaning government, what is the more likely scenario, in my opinion, is hyperinflation or a further devaluing of the Canadian dollar.
Either scenario is very bad for people in debt, a hyperinflation will lead to the Bank of Canada raising interest rates, a deflation scenario would lead to the bank of Canada raising interest rates. The problem with Canada is our social safety nets and regulations, in order for them to be maintained a minimum income is necessary, a minimum tax collection is required and most importantly the private sector has to be growing in order for the government to pay for all this stuff it promised.
To solve this problem is actually quite easy, but the actual implementation is impossible without there being a financial crash or collapse. This system has to crash in order for Canadians to know that it’s not working. The Liberal and conservative governments have been able to taper over these problems for years, all of these protections and regulations have been mounting in order for the government to artificially shrink supply and in turn artificially create demand. What I mean by this is because of over-regulation a lot of businesses that exist in America and even many parts of Europe wouldn’t have a chance in surviving in Canada, because the cost to do some businesses in Canada is simply too expensive.
If you look around Canada, what you’ll notice is that we have a lot of big Corporations here, these big corporations haven’t exactly brought lower prices with them and the reason for this is because they don’t have small business competitors to worry about. Minimum wages work to the advantages of large corporations. This sounds nice on the surface, it may even look nice on the surface, but what it’s doing is it’s causing small businesses to simply not exist and it also changes the psyche of the population. If a business or certain type of manufacturing doesn’t exist in Canada, we become reliant on imports, Tariffs are a tax on Imports, Canada’s counter tariffs in the long-term work in the favor of large corporations and hurt Canadian consumers.
The problem, the real problem with Venezuela isn’t the currency, the problem is that they do not manufacture a much of anything in Venezuela because their government is anti-business, their government is overly regulated, their government is anti-free market, their government put the social needs of the people ahead of the economic needs, the Venezuelan government created a nation of people dependent on the government. Now, I can bet that if you went to Venezuela, the people wouldn’t say Socialism is the problem, no the people would probably say this government is corrupted and we need to create a better form of socialism. This is the same type of thinking for the most part that is happening in Canada.
People don’t think government regulations and the government’s redistribution of money to the people they deem as worthy as the problem. No, what’s being promoted in Canada is this idea that what we need is a different type of socialism, a different type of Keynesianism a better redistribution scheme. This is an indicator to me that the Canadian economy is in a world of danger. If Canadians don’t vote for real change in the coming election our economy is toast. You can watch the Global TV video by clicking the link below:
How Canada’s tough counter-tariffs are affecting workers
Interesting times ahead