Despite the biggest deficit since the Second World War, Canada can afford this crisis GlobePolitics
There will be bills to pay. But we should be able to pay them without sacrificing the quality of life of future generations
Yet despite the massive deficits and debts that financed the war, Ottawa was back to running surpluses within two years of its end. “One might hope for something of the same turnaround,” Prof. Fagan said.A surge in economic activity once governments release us from this national quasi-quarantine should also bring revenues up and deficits quickly down, though Prof. Fagan added that the federal government would need to continue spending as the economy transitioned back to normal.
That doesn’t change the fact that by the time this is all over “we will be looking at hundreds of billions of dollars in debt that we did not anticipate six weeks ago,” said Kevin Milligan, a professor of economics at University of British Columbia.The good news is that federal and provincial governments are taking on this unexpected debt “at a time when we have some of the lowest interest rates we have ever seen,” said Douglas Porter, chief economist of the Bank of Montreal.
Story continues below advertisementIt costs only about a billion dollars to service $100-billion in debt. “That’s not a trivial amount, but it’s affordable,” Mr. Porter said.And this economic shock has forced us all to confront realities that we were trying to avoid: One way or another, maybe sooner or maybe later, the Canadian economy needs to transition away from oil and gas to cleaner forms of energy, especially with oil prices so low it’s hard to make a living off them.
And as many have alreadypointed out, our aging society was going to force up the cost of health care, even before the pandemic arrived.The difficult but essential task will be to sustain the economy as it recovers after the pandemic, while also bringing public-sector spending under control. Prof. Milligan fully supports the government’s emergency spending measures, such as the Canada Emergency Response Benefit and the Canada Emergency Wage Benefit.
But “the 'E’ part is the critical part to me," he said."We cannot be paying $2,000 a month to anyone who checks a box forever.”The best outcome would be a gradual ramping down of government spending and deficits as business and industries ramp up and life returns to normal.
Story continues below advertisementWe will also see the return of politics. Right now, opposing political parties are limiting their criticism of each other as governments struggle to respond to the greatest national emergency since the war. The close co-operation between the Justin Trudeau’s Liberal federal government and Doug Ford’s Progressive Conservative Ontario government is wondrous to behold.
But the day will come when politicians go back to wrangling over deficits and spending that are a tiny fraction of what we’re seeing now.What a blessed day that will be.Christopher Mio and Meghan Hoople found themselves jobless and wanting to help in the wake of COVID-19 isolation in Toronto. After flyering their neighbourhood with a free-of-charge offer, they received an outpouring of support and requests from people in need.
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globepolitics We don't have a choice globepolitics The way we can afford it is to make the rich pay. This is not a cliche but a must; those who hide trillions off shore, avoid taxes, pay low taxes, deal in cash etc etc must be dealt with. Also new fair tax system must be intro. to make sure the rich/corps pay their share. DO IT
globepolitics Says Judas. Do you believe him globepolitics Our dollar is plummeting, oil is under 5 bucks, and Trudeau is printing money like they're Jehovah's witness flyers. What could possibly go wrong? globepolitics The globe seems to have started to kiss Trudope’s ass. Did they get some of that money? traders cowards
globepolitics No, Canada will not recover since Drama queen Trudeau has already bankrupt this country. globepolitics Sure. If you say so. globepolitics No way globepolitics Yes we can handle the deficit it’s been going up for decades and if handled correctly it will be fine. You are comparing your own household debt ratio to the governments and it is nothing like an individual household. Watch and learn.
globepolitics Seeing those comments now I know why Canadian generally can’t do simple maths. A govt keeps all the money and 10-20% of you may die bcoz you need to work for contributing Canadian economy. Dead people can’t work. globepolitics Ahhhhh, sorry April fools day has already passed. globepolitics Then why the $100,000,000,000 deficit?
globepolitics despite the business lean, i managed to get through this obsurd article. what is it you guys don't get about what we are facing right now ? it doesn't matter what level the deficit is at! were trying to stop the body count! to put more pressure on Canadians is wrong! priorities globepolitics Nope, we can't.
globepolitics No. Canada can’t afford the Crisis after 5 years of financial mismanagement by Captain Crayon’s spending on his vanity projects. It’s incredible to see the lengths that Canadian media goes to in order to pamper and protect Trudeau. globepolitics Another Katie Telford byline. Whodathunkit?
globepolitics Interest rates are low because the government crashed the economy overnight. That doesn't make it okay to add debt that will take decades to repay. Oil prices are similarly low because demand was destroyed by stay home orders. It says nothing about the potential of cdn oil. globepolitics Look at the national debt instead. Canada had virtually none until Pierre Trudeau switched the public lending right from the true Bank of Canada to private banks. The 'deficit' is not the real issue.
globepolitics More State Propaganda from “media” on federal payroll. Degenerates. globepolitics Canada can NOT afford this If we could we wouldn’t need to borrow to begin wth globepolitics The once prestigious newspaper has now been reduced to being a Lib funded shill - current value of this rag - bottom of a bird cage to collect droppings
globepolitics That's what the carbon tax is for. globepolitics We're just lucky to live in a country where the budget balances itself. globepolitics With what revenue exactly? Not one project off the ground in 5 yrs and investment has fled and dried up. I don’t think it should read Canada can afford, it should read tax payers will cover it.
globepolitics globepolitics Really? globepolitics Would you say the same if Harper was at the helm? globepolitics Justin is smoking the crack pipe. globepolitics No, it can’t. This is going to come back and haunt us financially for a long time! globepolitics 0031681096780 globepolitics Lol how? By selling the country to Trudeau’s best friend China?
globepolitics By Canada do you mean tax payers?
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