Ontario and Quebec are the two provinces are facing problems in their long-term care facilities, with Ontario acquiring 265 Canadian Armed Forces Troops stationed at 5 facilities, while 670 have been deployed to 20 facilities in Quebec. Next week we will see that number of CAF members rise to 1350 deployed to 5 more LTC facilities in Quebec. Yet, Trudeau had announced another type of fiscal policy that will put money in the hands of our essential workers.
The federal and provincial governments have announced a wage top up for our essential workers. Who those workers are, will be determined at the provincial and territorial level; however, Trudeau said that this initiative is here to support who are working for “very low wages, while doing extraordinary work”. According to CTV news, “Trudeau said the federal government will be putting up three quarters of the top-up with the provinces and territories covering the other 25 per cent of the funds, totalling $4 billion.”
This leaves me wondering how the economy is going to look moving forward, and how governments are going to handle the aftermath of this pandemic. The IMF has set guidelines for countries that will be dealing with this situation as the pandemic has eased. A lot of what is being talked about by the IMF’s Catherine Pattilo, Assistant Director the Fiscal Affairs Department, is exactly how countries like the US and Canada are moving forward; tax subsidies, wage subsidies. But most of all using the automatic stabilizers built into a countries budget (such as the unemployment assistance in the US) to help ease the pressures placed by the COVID-19 pandemic.
What do you think is going to happen once all the money is spend and the pandemic is over?
If everyone had spent money more, I guess the government wouldn’t have to increase their taxing or decrease their spending as much. Yet I imagine we are going to be taxed, government spending is going to shrink, new jobs are going be created as businesses are shut down and we’re going to have a reset of the economy.
I am going to research this a bit more, and hopefully I am wrong or missing something.Enjoy the Government aid, or loan.
Depends how you look at it.