Because of Government Lockdowns, Canada’s small businesses now have $135B in debt and the Loonie continues to rise – February 25, 2021,
So a few things are happening in Canada, prices for everything is going up and so is the Canadian dollar. I do remember the exact same thing happening under Barack Obama. Joe Biden although older is Barack Obamas dumb little brother.
Joe Biden’s economic policies are incoherent, Joe Biden is incoherent and the market is unsure how to value the U.S dollar. Joe Biden owes a lot of favors to special interest groups ad as more and more people read all of the executive orders Joe Biden signs, more and more people a beginning to comprehend the mal-invest that will be coming to the American empire.
A bad U.S economy is bad news for Canada because it pushes the value of the Loonie up, I always like to remind Canadians that per capita we have a much better standard of living than America has, however, our welfare State is financed by devaluing the Loonie.
If the Loonie gets too high our tariff tax system runs into a plethora of problems and our manufacturing sectors will start to question why they’re wasting time in Canada because a higher Canadian dollar equates to higher wages employers have to pay.
Now because most of the manufacturing jobs that exist in Canada pay way more than any provincial minimum wage, even if Joe Biden is dumb enough to force every U.S State to pay the $15 minimum wage, Canadian manufacturing companies still might head south of the border, maybe even taking their highly skilled Canadian workforce with them.
The small business debt in Canada is primarily the result of Justin Trudeau’s response to COVID-19 which included giving Canadians cash for doing nothing. This has led to a lot of Canadians not returning to work, the Premiers have made things worse by locking down everything and not targeting areas of their province in which the virus could have the biggest impact, and in general what I think a lot of people are forgetting are the number of loans outstanding in Canada, while apparently, Canadians are saving like never before.
I was listening to some people speak about how they’ve been able to save, but then when I listened some more, these people were saving money because they stopped paying the debts that they didn’t have to pay. For a person like me, if I’m giving money to pay bills, I’ll pay all of the bills, but what I’m understanding is that a lot of the recipients of CERB and CRB are hoarding their cash and only paying bills if they feel that they really have to pay the bill.
It was crazy for me to discover this information because I assumed if Canadians had the money they’d pay their bills, however, many Canadians are still treating COVID-19 like an apocalyptic event in which they should only pay the bills they absolutely have to pay. So if there exists a means to avoid paying their car note, credit card bill, rent, or mortgage while receiving CERB, they’ll do that.
So when the economy normalizes it will be interesting to see what happens because apparently debts aren’t being paid down, maybe collectively they are, but there exists a lot of individuals who aren’t paying their bills even when they’re being financed by the government.
How all of this relates to small businesses s that life in Canada might get more expensive as the Canadian dollar rises, because, in my opinion, we’re heading towards negative interest rates in Canada.
Canada’s small businesses now have $135B in debt due to COVID-19, CFIB estimates | globalnews.ca
Interesting times ahead