Forced Austerity Measures Appear to Be in Canada’s Future: The Cost Per Federal Government Employee is Expensive and Unproductive, WE Scandal situation worsens – September 10, 2020,
It’s becoming increasingly clear that Justin Trudeau, as well as members of the cabinet, are not so much corrupt but incompetent, as many of us on the Right suspected, he imines himself not to be a Prime Minister but instead to be a king or a member of some royal family.
Trudeau’s Liberals deem it beneath them to live by example, instead, they’d rather live and rule via Fiat. Do as they say not as they do, and excuse what they do, for they are better and more important than you. The uneducated voter, doesn’t see the modern-day Liberal class as cause of concern, because you know it’s only a little corruption and as die-hard Liberal supporters will convince themselves, no party is more corrupt than those evil Conservative political parties who keep all of the money to themselves? At least Trudeau is giving the people free crap right?
Well, it appears that Trudeau and his cabinet are giving or attempting to literally give away free taxpayer money to their friends. It’s not like this only happened once, it’s actually happened several times and if you include, the spending the liberals have done on things like plastic bottles and the amount of money spent on their leisure travel, one would conclude that the Liberals are both socially and financially irresponsible.
Political fallout continues despite shuttering of WE’s Canadian operations | ctvnews.ca
Now, disgraced former finance minister Bill Morneau, as many suspected when he first called small business owners tax cheats has proven to be an incompetent person, who either never took his role as finance minister seriously or wasn’t qualified for the job.
He’s done a lot of boneheaded moves which all appear to be linked to Justin Trudeau’s bad decision making. As Maxime Bernier has pointed out, Max refuses to pander to special interest groups, well if you read the article below, that’s exactly the reason why Bill Morneau violated the Elections act. While pandering to the Muslim community with then-prospective candidate Anita Anand, who then went on to win the Oakville riding and has since been promoted to a cabinet position with a very high paying government salary.
Bill Morneau violated Elections Act ahead of 2019 election: commissioner | CBC
Meanwhile, what a lot of Canadians aren’t realizing is that the main reason most of us are in so much debt is because of the amount of money via price inflationary regulations and taxes which come directly from the Federal government.
The Carbon tax is a regulation which drives the cost of living up, although Canadians might not see any inflation on the streets, the reality is COVID-19 was deflationary for the economy, what’s not deflationary is the amount of money Canadians have to pay to the Government.
Posthaste: These are the Canadians in danger of falling off the debt cliff | nationalpost.com
The government workforce doesn’t work for free, as Canadians, we all collectively pay for the salaries of government employees, which is why the governments hate the word deflation. I often write about Argentina, why? Because Argentina is still a rich country, what makes the country of Argentina poor is the cost to run their government.
So imagine the entire nation of Argentina generates $100 per year, but the cost to pay for all the Government employees in Argentina is $1000 per year, the problem at that point is beyond simply paying back the $900 worth of debt, the problem becomes SERVICING the debt.
Well, Canada via Justin Trudeau has put herself in a situation in which servicing the debt is going to be a major problem, even while interest rates are near zero percent. Now, in countries like Switzerland and Japan, in which their central bank has created what many call a zombie economy.
What’s often ignored by the onlookers is Japan’s ability to produce, Japan as well as Switzerland don’t have productivity problems, their problems stem from money and resources being thrown at them which drives up the value of their currency.
One of the reasons why Germany wanted the European union is because without the E.U Germany would have nobody to sell to. Italians as an example can tell you about the value of the Lira. If you wonder why Germany is reluctant to end it’s partnerships with Communist China, it’s because it needs countries to sell it’s goods and services too.
What a lot of people don’t understand about capitalism is that its DEFLATIONARY, in Europe one of the taxes that they have is something called a value-added-tax, because value-added via a famous name brand is inflationary.
Capitalists become wealthy by adding value for the consumer, so if a product or service is really $5, but because my brand is so much better than the other brands, I charge let’s say $8, the $3 value added is in fact an inflationary profit margin that my brand warrants. A reminder that the customer has the option to buy from my competitors, but opts to buy from me because my product is clearly superior.
You see this in Canada when you see a name branded product vs. the store-branded private label product. Now, what should bother you in Canada is that a lot of our premium brands are imported to us. In Japan, the Japanese consumer will buy let’s say a Japanese automobile not simply because of their nationalistic pride, but because their Japanese made product is in fact superior to the foreign car.
In Canada, we slap tariffs on the United States as an example to prevent American companies from dominating the Canadian economy.
So back to the point, I was writing about regarding value-added taxes, in Europe, when a company adds value, the government comes along and says wait a minute, we want our cut of your value so we can redistribute the value you add and charge to your customers to people or entities we deem more worthy. These regressive taxes which are all over Europe lead to stagflation and drive up the cost of doing business.
With that said, Europeans in certain European countries are more productive than Europeans in other countries, but under the Euro umbrella, they’re all in this together. Well in Canada, we have a similar problem, which is Western Canada is more productive per-capita than Eastern Canada.
But Western Canada, namely Alberta has a cashflow problem and if this problem persists which it probably will whether Justin Trudeau or carbon tax loving Erin O’Toole is the prime minister, eventually the size of the Canadian government will have to shrink, well let me reword that, it should shrink otherise we’ll go bankrupt like Argentina.
Now, it’s more likely that the government will shrink under Erin O’Toole than it would under Justin Trudeau, but what a lot of Canadians aren’t comprehending is the massive debt cliff that awaits us all, and although some think that negative interest rates are the answer, negative interest rates only make sense in a highly productive country, which Canada currently is not.
We’re losing our manufacturing, Japan nor the Swiss are losing their manufacturing, people hoard Swiss francs and Japanese Yens. Japan is with the IMF basket of currencies, Japan has Special Drawing Right(SDR). Canada could have been in a similar position, but we chose big government, we manipulate our currency not exclusively for the benefit of the private sector, we manipulate our currency for the benefit of our big government.
If the Canadian dollar was where it should be which is near parity with the U.S dollar, the entire Canadian society would look different, it would definitely be richer and more productive and with more people working in the private sector, it’s harder for the government to tell blatant lies and get away with it.
In Switzerland in some regions, a politician can go to jail for running a deficit, how did this happen you ask? Because most Swiss citizens know the difference between a private and public sector worker. You can be a socialist in Switzerland, but you’d better pay for it with your own money, and your brand of socialism better not leave the Swiss citizen left with paying the bill caused by your socialist ideals.
I suspect in Canada we will have forced austerity measures in the future, the problem is that when this happens I know it will be unlikely that Canadians will be able to comprehend how bad the problem is because we’ve become accustomed to the notion that deficits don’t matter!
PBO: More spending, not more workers, driving costs for federal employees | nationalpost.com
Interesting times ahead!