Justin Trudeau’s Big Spending and More Regulations Throne Speech Equates To Canadian Dollar Debasement If Implemented – September 24, 2020,
Trudeau during his throne speech omitted focusing on Oil and Gas and instead focused his attention on climate change. The Paris accord is a regulation on the economy and because the Paris accord is taxation without representation, the big emitters have already found a way around the law, which means that Canadian tax payers will be on the hook for it.
But oh, it gets better, Trudeau also promised that the government would take on a bigger role, ask not what you can do for your government, sit back and wait for the government to handle everything for you Trudeau proclaimed.
A throne speech long on language and ambition, short on specifics | cbc.ca
Now, adding more regulations while at the same time increasing spending is a recipe for economic disaster. I’m not entirely sure why the U.S dollar is rallying, but I don’t know if it be short lived. What I do know is majority of Trudeau’s proposals won’t stimulate any long term growth.
Elon Musk and Tesla are as Green as Green can be and Tesla is still struggling to turn a profit. Sure Tesla’s stock is an indication of the demand for Green Energy and Green technologies, but so far we’re not there yet Furthermore even if we get there, the regulations in Canada are such that we’re unlikely to benefit from a Green Energy revolution for at least a decade.
So with increased regulations, which equates to increased costs for Canada’s private sector, the growth in the Canadian economy will have to come from the existing big players. Recently Ford sign a deal with UNIFOR and there were a few other deals for Canadian jobs, however, these companies were already here, what will be interesting is if Trudeau can attract more companies to come here.
Canada ‘bets the farm’ on big spending as second wave threatens economic recovery | reuters.com
One thing is for sure based on Trudeau’s throne speech in the near term Canada is going to have some economic challenges. It’s not like Trudeau is going to pay for his proposals with a small amount of debt, no the Federal Government is in historic amounts of debt as are the Canadian consumers.
Mortgage deferrals as well as the Canada Emergency Response Benefit (CERB) prevented an economic crash. I just want the reader to know that in the U.K they trusted their existing Welfare programs to carry themselves through their pandamic.
I also like to point out that taxes will have to paid back on CERB payments. A few years ago I wrote that if I were Prime minister instead of having income taxes taken out of people’s cheques before they could spend them, I’d personally make tax payers pay their income taxes at the end of the year, just so more Canadians could feel the cost of government.
Well, I’m very curious to see how taxes are repaid from CERB Cheques because a lot of stimulative effects from CERB are before-tax dollars. I’m really curious to see what will happen with this, because my suspicions is that it’s going to lead to increased levels of indebtedness.
Now, the article I point to below, reminds me of what Socrates said about Democracy ‘John Ivison: Good luck to the political leader who calls for more restrained spending’ are ring true in my mind.
But this isn’t an excuse for the Conservative Party to move further Left. This again feeds into my narrative that the Canadian dollar will be debased to pay for all of this government. Miracles do happen, maybe an invention the size of the internet is about to present itself, but if it doesn’t well if there are no Austerity measures as Trudeau says, the Canadian economy has some major challenges ahead!
Interesting times ahead!