Canada’s exporters predicting a global recession, carbon taxes and Canadian debt keeps on growing – June 14, 2019,
One of the hardest things to explain to most people is that minimum wages are a scam, I always find it hilarious when I listen to so-called Conservatives or even Libertarians talking about wage growth, no hat we should be focused on is stronger currency and that’s achieved by innovation and is known as country who makes things the market wants. That’s how you increase pay, your pay is increased by a stronger currency which enables you to not only attract more investment but also raise the standard of living for your population.
Canada’s inflated pay scale is part of the problem, Canadians got a pay raise way back in the 1990′ unfortunately Canada’s Public Sector also got a pay raise and unionized public sector employees, as well as unionized crown corporations, inflate prices which is a major reason why keeping the Loonie low is the accepted norm. Keeping the loonie low equates to Canadians having less purchasing power, it also with the wrong economic policies (which Canada has) will lead to job loss in manufacturing.
Most Canadian workers are stressed about their pay, study finds – CBC
When your country stops making things, your country is more susceptible to recessions, you see the Canadian economy revolves around protectionism, a lot of industries in Canada are not only unionized but they’re also State Owned, this type of protectionism equates to a much small private sector importing goods and services out of the country, which of course could lead to fewer investments in Canada’s new Carbon taxed overly regulated economy.
Canada, similar to Mexico is fortunate that it borders with the United States because the U.S allows both Canada and Mexico to grow their Public Sectors as well as devaluing their currencies to make political promises, while at the same time protecting some of their own privately owned companies for foreign competition. Until Donald Trump Canada hadn’t been called out on this, a large portion of Canada’s growing public sector is financed via trade, which revolves around our ability to export to the United States, if the U.S stops growing or if theirs a recession, Canada will have to be very careful what it does with interest rates.
Majority of Canada’s exporters predicting a global recession
– TheStar.com
Regressive taxation and Europe’s inability to sell its people on Austerity measures helped to create the European Union and European currency. The assumption by most bureaucrats is not to tell the people the truth that they can’t get something for doing nothing, instead, what’s often emphasized is that where there’s a will there’s a way and so the world has gotten progressively worse, using debt as their tool for global growth. Now, in this type of economic environment, debt isn’t the problem, the problem is the type of debt a country has.
Japan as an example is known for being an indebted country, however, Japan’s public sector is for tiny in comparison to that of Canada. Again I remind the reader, State Owned Crown Corporations and Public Servants get a paycheck, that in many ways has nothing to do with market fundamentals, so in the event of a recession, these government workers will continue to collect money while the dwindling private sector during a recession in Canada has to pay taxes to support them. Doesn’t sound like a big deal, but it is during a recession.
Adding to this disaster is the carbon tax, which is a regressive tax which the truth of the matter repels manufacturing which then puts more pressure on the Bank of Canada to pay close attention to interest rates, because the reader must understand that Canadians are in a lot of debt. Your house is an asset only if it’s making you money, your unsecured credit lines are only assets if they’re available to you, a recession is a contraction of the money supply, invest is more scarce and investors want to be compensated greater for the risk they take.
This, of course, leads me to the final point, debt is growing in Canada, while wages aren’t, being indebted is like being entitled, you don’t know how lucky you have it until the debt you’re used to, no longer exists. This is where the cost of living consumes most people and this is of course what inevitably leads to a market collapse, markets collapse when debt is going to the wrong people, debt is supposed to be used to grow the economy via innovation, I haven’t heard of too many Canadian companies making a huge splash globally? If it’s happening the state-run media the CBC should do a better job talking about it because all I hear about on the CBC is housing price inflation, rising debt levels, higher rent prices, unsatisfied working conditions and calls for more taxation. Not exactly fertile ground for innovation. But I’m hopeful.
Interesting times ahead