Canadian Prime Ministers Poll Numbers are Tanking So The Federal Liberals Announce Changes to carbon tax, But There’s a PRICE CONTROL problem in Canada – October 26, 2023
Taxes are only REDISTRUBUTION of resources from the private to the public sector. Some like the idea, as they IMAGINE the federal government is better suited for certain responsibilities, but make no mistake about it, government TAXES are usually a HINDRANCE to the economy as the government will take resources from the private sector and give itself a payraise, which is really what the carbon tax was all about.
Even with the Carbon, Justin Trudeau’s government still had to provide FINANCIAL incentives to attract “renewable” energy companies to Canada, why? Because taxes, or raising taxes only helps to fund the government.
Unprecedented contract provides annual production subsidies as well as a grant toward the factory’s capital cost
In Canada there are still a record number of federal employees working from home, you can read about this on the government of Canada website.
Justin Trudeau has GROWN the federal work force since become the prime minister a lot of prior federal employees already had FAT pensions, and good salaries and these federal employees got a pay raise primarily because Justin Trudeau’s carbon tax led to consumer price inflation, and because these UNIONIZED Federal employees have wages that keep pace with inflation, these federal workers got a pay raise.
Now, that Justin Trudeau’s poll numbers are tanking he’s making changes, I’m hopeful these changes will work, I’m not entirely sure how his changes will be implemented yet, but because my country is hurting I do want these changes to be effective.
With that said I have to add some reality to this post and that reality is that Canada has a lot of PRICE CONTROLS in place, by price controls I’m referring to WAGE controls, the only way to get rid of an expensive employee is to FIRE them.
I’ve been saying for years now, that if austerity measures are out of the question, Canadians better get used to more rampant consumer price inflation. I heard nothing so far from Trudeau’s government about shrinking their workforce.
Recently the Premier of Alberta, Danielle Smith announced that she wants to take Alberta off the Canadian Pension Plan. If you’re unaware, part of the problem with Justin Trudeau is that all the federal employees he’s hired to drain money from Canadian taxpayers will be consuming the Canadian Pension plan, and the Canadian pension plan is heavily reliant on the PUBLIC SECTOR.
It’s hard to run a bloated government and be fiscally responsible; currently in Alberta, they run a very LEAN government, which equates to an overall lower cost of living for Albertans; one could argue, that their cost of living is high mainly because of transfer/equalization payments, which I argue actually goes to financing the pensions, of HAVE NOT provinces with bloated public sectors.
What I’m getting at here, is that Justin’s new carbon plan will need monitoring, because he’s already unleashed the inflation genie and until the Canadian Federal government starts talking about FIRING useless government workers, it’s hard for me to see how inflation stops, because there is price control mechanism already in place, which also includes the bank of Canada.
If inflation stops and the Bank of Canada lowers interest rates, I remind you that the housing or rental markets in Canada, haven’t crashed or even declined, so lowering interest rates could actually accelerate consumer price inflation. Again, the way I see things is if austerity measures are not implemented, the DOMESTIC purchasing power of the loonie will continue to DECLINE, leading to more economic domestic DEFLATION.
Interesting times ahead!