COVID-19 Exposes Justin Trudeau: Corporatists Liberals Don’t appear to understand Canadians who own Small Businesses – May 20, 2020,
So when the 1990s Liberals as corrupt as they were rewriting the laws for small businesses, they attempted to a balancing act. Current finance minister Bill Morneau a few years ago attempted to make portions of the Canadian tax code subjective and open to Government interpretation, he was called out on this, but what was so strange about Bill Morneau basically going after Small businesses, was how oblivious he was to the whole thing, which was odd to people like me, because the Liberals wrote the law and they wrote the law, because of prior Liberal Federal governments basically gave birth to the term Corporatism.
If you’re unaware Corporatism is a political ideology that advocates the organization of society by corporate groups, such as agricultural, labour, military, scientific, or guild associations on the basis of their common interests. In Canada, you’ll notice that there are many barriers to entry into the Canadian market, American business owners sometimes call us Canuckistan, because of the number of layers of economic protections on the Canadian economy, which by the artificially raise the costs of doing business in Canada.
I always laugh at American doom and gloomers who think that the American economy is the worst economy on the planet, clearly, they have no idea how many of the other Western nations are functioning. Canadian taxes are mostly paid via inflation of the Canadian dollar, most business owners hoard U.S dollars because Canadian dollars are guaranteed to depreciate, our system is set up that way and making matters worse, not only do Canadians have to deal with the silent tax of inflation, Canadians also have to deal with regressive taxation.
Now, how we make up for it, is Canada’s very low corporate tax environment, which again coincides with Corporatism. Nw, currently, even Justin Trudeau hasn’t raised corporate taxes that high, why? Because in a nutshell, that’s Canada’s bread and butter for attracting investment.
Most Canadians small and medium-sized businesses which include franchises, by the way, are in debt and ost of this debt is not only pay-roll but paying their rents, mortgages and commercial lease payments, let’s also not forget Trudeau’s carbon tax which most small businesses luckily haven’t felt yet because of deflationary oil prices.
With all of these costs which require servicing, what most small business owners don’t have the ability to do is add an additional cost of opening a business banking account or hiring an accountant, what this often equates too is business owners paying more taxes than they should be paying, which often makes the situation worsen because the government gets accustomed to getting more money than it anticipated, money, the government is very happy to spend.
One problem, breeds the next problem and eventually what’s happening is that more and more small and medium-sized businesses were on life support prior to COVID-19, COVID-19 has accelerated a problem that was inevitable anyway, but this is going to be a tough challenge because small businesses are reliant on sales, in which might not be there even as the Canadian economy re-opens.
Now, lastly, the main problem that Trudeau’s Liberals don’t seem to comprehend is that the world appears to be headed down the road of deflation. Sure governments can print their way out of deflation, but that often leads to hyperinflation, I don’t know maybe modern-monetary-theory can get us out of this, who knows!
But the main reason U.S President Donald Trump was so aggressive about getting small businesses government money was that deflation means bankruptcies, bankruptcies, means fewer taxes collected and the high barrier to entry means it’s harder to replace failing businesses with new businesses.
Again recently Donald Trump signed an executive order to cut regulations in the United States, now even if you’re pro-socialism, it’s important to comprehend that regulations equate to economic stagnation. If I as a business owner have to spend let’s say $10,000 per year just get a license to sell in a particular industry, that barrier of entry when I go bankrupt equates to my failed medium or small business not being replaced with anything of similar or equal value.
I write about minimum wages all the time and the article I point to below oddly enough writes about family-owned businesses being paid in dividends, why? Because there’s a minimum wage! Sure the Federal minimum wage isn’t a factor provincially, but the minimum wage is a barrier to entry. In Ontario, if you can’t pay an employee the hourly minimum wage according to the labor unions, you don’t belong in business.
Now, the main problem with the minimum wage is not what it does initially, it’s the disasters it causes in the longer term, because entire industries will abandon the Canadian economy because of the minimum wage and what will happen is new infrastructure will be built to accommodate the existing businesses, who are often reliant on foreign manufacturing, so during an economic downturn, all of sudden your currency and preserving foreign capital takes precedence over the local economy.
Any way I can write about this topic for days, I’ll stop now! Prepare yourselves accordingly!
Interesting times ahead!