Canadian small businesses plea to the federal finance minister to consider more help paying off their pandemic-related debts – April 15, 2022,
I remember the first time the Pandemic caught my radar, Rudy Gobert a French professional basketball player in NBA caught Covid-19 at the time, he thought it was funny and began touching everything he could during the press conference. Long story short Rudy Gobert WITHOUT a vaccine quickly recovered. I then remember Prime minister Justin Trudeau’s wife catching covid and recovering without incident. Sweden never shut down! From what I hear from family members, a lot of small-town America didn’t shut down either.
When I did my research on the Covid-19 outbreak in Italy, most of the people who died were elderly, the first thing that came to my mind at the time is INFLUENZA, which by the way had been killing people in record numbers years, prior. Not to say Covid-19 and the Flu are the same, but you could argue very similar, with that said, as per usual some governments took a one size fits all approach to containing the virus.
Canada took most of its advice from the world health organization(WHO) and the WHO had no interest in the economy, it’s mission was to end the pandemic? The WHO which was heavily funded by the Chinese Communist Party had a lot of influence on the decision-making of the Canadian Federal Government which went as far as freezing the bank accounts of individuals who dared to protect against the Federal Government Mandates.
Because humans have short memories, a lot of people are forgetting why Small Businesses need money in the first place. I like to remind people, that most small and medium-sized businesses could not survive without going into debt, real estate investing as an example is a small business, most of these business owners could not purchase any real estate without access to debt.
Because the Federal Government is DEEPLY in debt, and we’re still considered to be in a pandemic(Unvaccinated Canadians still can’t fly) the destruction of the Canadian economy falls directly on the feet of the Federal Government. It’s very expensive for small and medium-sized businesses to pay for these additional Covid-19 costs, furthermore, a lot of Canadians are STILL being rewarded for staying home, making matters worse is consumer price inflation, which is clashing with economic DEFLATION!
Because we have a rule by fiat monetary system, money, and the economy are not one and the same. If money was backed by Gold when the economy was deflating the money supply would also be deflating. But via Fiat money and Keynesian economics, the PURCHASING power of money is based on confidence, when you understand that, you’ll then soon comprehend that costs are costs.
If the minimum wage is $15 an hour and an employee can’t be replaced by a robot, that’s a FIXED cost on a business, that can’t be deleted with economic conditions, so what this means is if the government says people using fossil fuels have to pay an additional cost, the business owner has to pass the cost onto its consumers. For a big business like Amazon as an example, this isn’t a big deal, because Amazon sells multiple digital and physical products.
A digital product like a digital book for example has no additional costs for Amazon, so even if Amazon has sales on physical products it can make up for it with its digital product sales. Most small businesses, do not have this luxury, a restaurant as an example, needs people to buy food, there is no “digital burger” and it’s unlikely a hungry person is going to buy a Non-fungible token(NFT) of a burger.
Where do I stand on this issue? I’ve lived below my means for a long time because I knew times like this were inevitable, I also don’t trust the government to take care of me. When people ask why I’m not for a Gold Standard, it’s because I don’t see austerity measures anytime soon, what I see are negative interest rates, why because unless the Bank of Canada really battles inflation, what’s likely to happen is another excuse to lower interest rates.
After all, the relay problem with higher interest rates is GOVERNMENT debt, not only private sector debt. When many participants in the private sector need financial help, many look to the government for a bailout expanding the governments’ balance sheet, these indebted businesses are often then silent, when the various levels of government engage in tyrannical behavior. So again, I remain neutral on these issues, merely observing the developments as they arise and adding my own commentary, in hopes more humans will become financially educated.
Interesting times ahead!