Rejected Canada Recovery Benefit (CRB) applicants encouraged to reapply Monday after 6 a.m October 19, 2020 – Nearly 600,000 Canadians have been approved for the new CRB – October 18, 2020,
So currently the Canadian government is paying people around $270,000,000 per week not to work via the Canada Recovery Benefit (CRB). I have to be honest I still don’t know the specifics, I only know the information I read off of the Canada Recovery Benefit (CRB) webpage found here: Canada Recovery Benefit (CRB). You can type CRB Canada into Google to learn more if you don’t trust my link.
What I do know about the CRB is that after-tax the recipients of CRB can get $900 every two weeks which works out to $450 per week which if there are near 600K active participants right now equates to $270,000,000 per week not to be productive. A billion is a thousand millions so within a month the Canadian federal Government will clear paying of 600,000 people a billion dollars to be unproductive, does this sound sustainable to you?
Now, I was reading about Switzerland a country that because there is more testing they’re getting more positive Covid-19 results and although their cases are rising they’re dedicated to keeping their people productive.
“Despite the restrictions, it should be possible to continue economic and social life,” the government said.
Swiss tighten measures to combat spike in COVID-19 cases | nationalpost.com
Now, compare that to what’s happening in Canada? In Canada, the various levels of government instead of focusing on how to open up safely, are instead engaging in commercial rent relief programs? Now, what people who don’t understand commercial rents should know is that most Canadian businesses are paying inflated rent prices, primarily because the CMHC, as well as the Bank of Canada, is incentivizing commercial property owners to wait on a Condo developer to buy them out.
You can walk around downtown Toronto as an example and ask most shop owners how many times they have to stop a condo from being built. The reason why the government should minimize its exposure to the real estate markets is that when there is a serious economic downturn the inflated prices are going to bankrupt the government.
So a lot of these businesses that will get this rent relief aren’t going to survive or they’re going to be in serious debt coming out of the pandemic.
New business rent relief program will address gap in promised funds, minister says | CBC
How this ties into CRB and even EI is that tax collection is going to go way down at a time that government spending for people to be unproductive is going way up. I point out countries like Switzerland, only to show the comparative study to people who think that the world has taken a one size fits all approach to Coronavirus, no, not every country is handing out free money to be unproductive and when the economy does start to recover, based on the numbers I’m seeing Canada is going to have serious debt servicing problem both personal and in government.
Bailing out inflated commercial leases? Are we being serious, paying 600,000 a billion dollars monthly to be unproductive while the private sector shrinks? Does that sound sustainable to you?
After complaints, CRA encourages some failed CRB applicants to reapply on Monday | CBC
Interesting times ahead!