Closing the gap of Nationalization of industry: Canadian federal government is backing interest-free loans of up to $40,000 for businesses – April 16, 2020,
Obviously, when you’re living through it, it’s a lot different than when you talk about it a few months or even a few years from now. What better time than now to layoff your employees and restructure if your small business is insolvent?
Now, I’m a small business person myself, I won’t be laying off anyone at the moment, but if I have too I sure will. The first person not to get paid in my company as well as in my family is ME! Not to say I’ve never gone into debt, but I’ve always avoided debt, which may sound odd to most people being that I’m a huge fan of the ‘Rich Dad Poor Dad’ book.
With that said taking money from an entity that has no money to pay employees in which Governments claim have Government unemployment insurance, makes little to no sense to me. There is this thing in business, that most franchise owners know about and it’s called “business systems” now typically the hindrances of franchise business systems are government interventions.
As an example, former Premier of Ontario Kathleen Wynne increased the minimum wage from $11.60 an hour to $14, now, when most people read that, they may only think about how the minimum wage workers would benefit, but what people forget is how the people who worked at jobs five years prior just to reach the $14 threshold.
This people who took 5+ years to reach $14 per jour now being told that entry-level workers via a government decree now make the same money it took them 5 years to make per hour. So what happens then? Well, what happens, EVERYBODY gets a raise or should get a raise and if they don’t get a raise a lot of employees either leave or become less productive and it’s not like these wage hikes don’t put small businesses and their owners into debt or add to the business debt they otherwise wouldn’t have, but this happens and workers cheer how great their Liberal or NDP governments are.
Well, during an economic downturn, if you’re asking me what I think, if you have half a brain in your head, you let the people who caused the problem in the first place deal with the problem.
Trudeau poised to announce more financial support for small businesses | ctvnews.ca
Personally I think a lot of the Canadian businesses who want this $40,000 were probably already insolvent prior to this COVID-19 outbreak and simply want some cash for whatever reason they justify. Recently the dairy cartel in Ontario simply got rid of their milk, they wasted it, because they want to keep their prices artificially high, this legal in Ontario and many parts of Canada, for a large business to manipulate market prices, if you’re silly enough to get involved with the same government causing all of these economic problems, that’s on you, actually, I would argue that you were headed for bankruptcy long before COVID-19 and Trudeau is basically sending you a lifeline.
But to those of you wise enough to see all of this free money for what it is, I recommend you, take this situation more seriously, because what’s happening all over Canada is money burning, none of the money being spent by Trudeau is being used productively, by productively, I mean in business, you borrow $1 to make $5 or $10 in profit I’m personally not even a fan of consumers having easy access to credit, because credit is supposed to stimulate growth in the economy and you have to be worthy of credit, meaning that history should have shown that if you’re asking for $500 in credit you have $1000 of savings in the bank.
Which means you’re inquiring about credit because essentially you’re looking for a partner. When I was looking to buy a business as an example, I could have paid cash for the business I wanted to buy, but the cost for me to do everything independently would far exceed the leverage the bank has to do it for me.
So I went to the bank to get a loan and the bank had its own criteria to lend me money based on what the business could prove about its claims of its assets, now obviously I’m trying my best to simplify my point, but credit, taking out a loan, giving a loan to someone, this all requires long-established business systems and you as a business person or even you as an individual should know what you’re getting yourself into because if you don’t basically you’re a burden on the economy.
Prior to COVID-19 the Candian economy was in terrible shape and it was in terrible shape because of Trudeau’s policies, are you really that dumb to take out a loan from an incompetent leader to pay employees many of whom may have and will continue to vote for incompetence. Because as a former employee myself, I don’t get what the business owners problems were, GIVE ME MY MONEY!
My attitude as an employee and that’s why I personally always pay an above-market wage, is that I don’t care about my employers’ problems, I don’t care about politics, my thinking was I did my work now give me my money, as an employee, I never trusted the government, most employees don’t trust the government, but what most employees do believe is that business owners have a secret stash of cash lying around somewhere and when you as business owner put take out a GOVERNMENT loan to make payroll when the government promised unemployment insurance, well, you’re financing your own destruction!
Anyway in other news, in Alberta, 1,000 workers temporarily laid off at Alberta meat plant with COVID-19 outbreak, union says. So yeah, these employees are very important to meat price in Canada, so any free money you’re getting, you’d be wise to spend it wisely as production levels in Canada are declining which means the potentiality of higher prices for consumers.
Trudeau’s Carbon Tax laws still exist, Trudeau already increased the deficit prior to COVID-19 and the stock market doesn’t like Trudeau or his policies and lastly, the Canadian dollar is something I’d pay attention to is that we’re heavily reliant on imports and I’m pretty sure America won’t be the only country with an America First agenda if food rationing becomes a global problem.
As private business close or as Private business becomes more dependent on the Government, what’s actually happening is the size of government is growing, industries are almost Nationalized, they become privately owned in Name only! Crown Corporations should be considered the Public Sector as well, so I’m not sure how many private businesses will take out these government loans, but from my standpoint, we in Canada are closing the gap to the Nationalization of industry!
1,000 workers temporarily laid off at Alberta meat plant with COVID-19 outbreak, union says | cbc.ca
Interesting times ahead!