Under Justin Trudeau’s Liberal-Socialist Leadership Lower Income Canadians Are Paying Higher Taxes – October 26, 2020,
Canada is entering into a phase I like to call “Late-Stage-Socialism” in this phase the only answer to a countries indebtedness is to shrink the size of government. Austerity measures are never popular politically and the issue with socialism is how it brainwashes people into believing that a big government is preferrable over a thriving private sector.
In Argentina, the people have become accustomed to a currency crisis, now the thing to remember about late-stage socialism is that the people over time will assume that this is just how things are and capitalism caused the problem. So in Argentina no matter how bad things get the Argentine people never assume that the problem is the size of their government and all the regulations the Argentine government levies on the Argentinas private sector.
In the 20th century, socialism led to a lot of wars, because the money back then was backed by Gold, which didn’t allow the government to spend beyond its means without consequence. Now, we’re in a different era, we’re in a fiat monetary system, in which the expectation is that all currencies will slowly lose their value over time.
But you see even a fiat monetary system comes with problems because a fiat dollar is backed by a countries ability to SERVICE debts, so as the government overly regulates the economy, eventually there comes a time when the private sector starts behaving in a way that stunts economic growth.
Now, sure there are big corporate entities who can afford the government regulations, but the problem a government gets with all of these large companies is that they can leave an area anytime they want. Tesla Inc as an example has left California because of regulations and Taxes, in Canada, Justin Trudeau and the Liberal Party of Canada have taken a different approach, they’ve been bailing out big industry and making the middle and lower-income Canadians pay for it.
Now, I’m certain that Justin Trudeau is too stupid to understand what he’s doing, but most Canadians also aren’t comprehending the long term effects of Justin Trudeau’s destruction of the Canadian economy. In the Late-Stage Socialism phase, the assumption by the people is that this damage caused by Justin Trudeau will be an easy fix without giving up anything.
Unfortunately not only will Lower-income Canadians be paying more taxes, soon the Canadian dollar is expected to be debased, to pay for all of this government. I always like to point out that government employees don’t pay income taxes, the taxes paid by government employees come from the private sector.
The income the government has comes from taxpayers and then the government taxes itself again almost like it’s recycling private sector taxes, which then means as the private sector shrinks the government is forced into a position in which it literally can’t SERVICE its debts without borrowing money from the Bank of Canada.
Now, a lot of people think this isn’t a big deal, but it is because the poor and middle class end up paying for this debt with higher prices, that this problem accelerates under the radar! As an example, I expect that there might be modest inflation, which is higher prices, but Canada’s productivity is down, our private sector is less productive which also means the Government of Canada just got BIGGER! and more expensive to manage
Debasement with low-interest near 0% and record levels of consumer and public sector debt is a giant economic disaster waiting to happen. All the warning signs are here and Canadians should prepare themselves accordingly!
REPORT: LOWER INCOME CANADIANS PAYING HIGHER TAXES | iheartradio.ca
Interesting times ahead!