The Justin Trudeau Liberals Continue To Chase Away Investment: Parliamentary Budget Officer Assumes Changes to Minimum Tax will add $2.6 billion over five years for Federal Government – September 8, 2023
Let’s imagine you had vault full of Gold that you earned or even inherited, and you were warned that the Canadian Federal Government was coming after your Gold, would you cower in fear or do your best to hide it?
Let’s take things a step a further, let’s say the government showed up to your house unexpectantly or unannounced and confiscator your gold, would your behavior change moving forward or would you behave the same way you did prior to your property being taken from you?
Left wing logic, reminds me of Late Stage Capitalism, the theory of Late Stage Capitalism is that once the capitalism has produced enough wealth, the GOVERNMENT should take over the means of production.
The problem with this theory is that the people who think this way are anticipating that after the Government takes over everything that human behavior will be the same as it once was.
One of the unique traits of wealthy people is their ability to ADAPT, to changes, but that’s not the problem, the problem are the CONSUMERS, the Customers who either will not like the limited choices provided to them or who will change their FOCUS on hatred toward the private sector and focus their hatred to the State.
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This is why in countries like China, Cuba and even Russia, the leaders of the countries have to rule with an IRON FIST, because otherwise there will be an uprising.
In Liberal democracies, some politicians imagine that a WELFARE State will produce similar results for the democratically elected politicians as States rule by authoritarians. But what these Trudeau types fail to recognize is that most of their followers are following them because they expect to get free stuff from the government indefinitely.
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Now, this doesn’t mean that the welfare state can’t have a long run, when it’s all said and done Justin Trudeau will like be the most unpopular Prime minister in Canadian history to be in power for 10 years.
Canadians love their welfare, but they also like their options and Justin Trudeau’s style of politics revolves around limiting the options of Canadians by raising taxes.
When Jean Chrétien became Prime Minister in 1990s, the country was getting very Conservative and the reason for this is that none of Pierre Trudeau’s idea’s were economically fixable.
Joe Clark, John Turner, Brian Mulroney and unfairly Kim Campbell were all to afraid to push the austerity button. The truth of the matter was that the ghost of Pierre Trudeau haunted every single politician until Jean Chrétien, because Pierre Trudeau left politics basically on the top of his game.
Most Canadians don’t understand the economy, and they’ll imagine why there’s an economic downturn based on their own personal ideology and this bodes well for most Left Wing politicians until it doesn’t.
If there’s a slight economic downturn, anyone can blame that on bad luck, but if like Justin Trudeau, the economy has gotten progressively worse since you’ve been Prime minister, well then now, even the financially and economically illiterate can conclude that it’s not so much of bad luck, maybe Justin Trudeau is simply UNLUCKY.
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That’s when most reasonable people will actually start to pay attention to what Justin Trudeau says and does, paying closer attention to his flaws, than they used to, whereas in the past they may have assumed the media was simply being unfair to him, now more people will see Justin Trudeau for what he is.
That’s what’s happening in Canada today, and the left wing playbook when things go bad is to blame the rich, tax the rich, blame the opposition and work on changing the narrative surrounding the failing Prime Minister.
The problem with this blame the rich narrative is that Canada is already a BAD place to START a new business and dump capital. So going after the existing job creators, can result in accelerating the economic downturn.
What Trudeau doesn’t seem to comprehend is that it’s own fiscal policies that are resulting in a decline in tax collection. Now it’s one thing to have declining tax revenues, but it’s something else when you’re accelerating your spending while tax revenues are declining.
Ottawa has a spending problem and it’s collecting fewer dollars. I remind you that federal workers NOT driving to work also equates to a DECLINE in revenues, the Carbon tax Trudeau imposed, anticipated that economic activity wouldn’t decline, but the carbon tax has led to a decline in revenue because as I pointed out in the beginning of this post, using the vault full of gold example, now that Canadian tax payers are seeing that the Federal government is coming after their vault full of gold, they’re CHANGING their behavior and this has led to DEFLATION.
Now, because we live under a fiat monetary system, when the economy is deflating the Federal government imagines that borrowing more money and spending it will lead to more economic activity, but people have already become accustomed to their gold vaults being RAIDED so they’ve changed their behavior PERMEMNETLY while the gold vault raisers are in power.
Now, this is not to say that raiders of gold vaults can’t remain in power, it’s just that this new normal behavior will not change, in fact it will likely get worse, as more tax paying Canadians find more innovative ways to protect their gold vault from being raided.
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In closing, taxing and spending has always been a recipe for disaster, but I’m reminded that Justin Trudeau’s weakness has always been the economy, and his cabinet is a reflection of him, so I expect more of the same from him in the future, which will contribute to more consumer price inflation, which equates to economic deflation, which equates to less tax revenue for the Federal government, which likely contributes to more borrowing from Trudeau, which then likely equates to higher interest rates.
Interesting times ahead!