Guaranteed PERMANENT Cost of Living Increases For Canadians: Canada Revenue Agency(CRA) employees Strike a tentative deal with the federal government to RAISE THEIR WAGES – May 4, 2023,
The Public Sector gets paid via taxes collected from the private sector, and a lot of UNIONIZED government employees have their salaries tied to the INFLATION rate. Furthermore, the Federal Jobs sector has its own minimum wage. The federal minimum wage in Canada is, to the best of my knowledge, as of today’s dates, $16.65 per hour.
The Canadian Federal Government has been UNSUCCESSFUL in its attempt to live within its means, so these federal employees can only be paid via the government of Canada borrowing money from the Bank of Canada.
The Federal Governments’ deficit spending as of today’s date also has a higher interest rate, meaning that more Canadian tax dollars will be going into paying INTEREST than paying down the actual Federal deficit.
Adding to this disaster is the reality that Federal employees can vote, and the majority of these unionized employees will NEVER vote for austerity measures meaning that any Federal politician running for office in Canada, even if the plan on implementing AUSTERITY, better not talk about it.
Because the average Canadian is too stupid to comprehend that the Federal workforce is financed by the private sector, which currently has to adhere to more government regulations that raise their cost of doing business, when consumer prices go up, most Canadian voters will likely blame private sector entities for the consumer price inflation, instead of these public sector wage hikes, along with these silly economic wars on fossil fuels.
Although many want to blame the Central Banks or the overall Federal Government, the truth is that Canadian voters are responsible for consumer price inflation because they’ve ACCEPTED a mediocre education in exchange for government welfare. Sure, many Canadians comprehend what is going on, but many more don’t and quite frankly don’t care.
This is, ofcourse, why you should expect consumer price inflation to get worse moving forward. Now, why this is a problem primarily is because asset inflation prices are coming down, meaning that fewer Canadian dollars will be available to be lent out by the private sector.
In my estimation, this would equate to more government stimulus, and the problem with PRIOR government stimulus programs is that they led to more consumer price inflation. Government regulations follow a lot of government stimulus, as the government typically wants certain sectors to boom, and if their targeted stimulus programs don’t work, it equates to more debt and less economic activity.
So now that a higher cost of living is guaranteed for Canadians moving forward, the only question to ask yourself is, will the CRA and their higher wages stimulate economic growth for the Canadian economy? The answer to that question should be obvious.
Interesting times ahead!