With Debt Piling Up, Taxes Rising, And The U.S. Passing Tax Cuts, Canada’s Economy Faces A Tough 2018

Even the “good” economic news of 2017 was tempered by the fact that the gains are going to a small elite, while the vast majority of Canadians continue to struggle.

The elites have tried to make our economy look like a success story.

The fact that Canada has the highest household debt on earth has received very little attention – even as the supposed “growth” of our economy is based upon unsustainable debt.

And yet, it’s going to be far harder for the elites to hide the truth in 2018.

Canada’s economy is already slowing down, and now faces a new serious challenge since the U.S. has approved large tax cuts.

The big problem is that Canada and the U.S. are moving in opposite directions when it comes to policies that encourage job creation.

The U.S. has been reducing bureaucratic regulations, lowering taxes for about 80% of the population, and bringing their business tax rate to a level that is competitive with Canada – eroding our previous advantage.

At the same time, the Trudeau government has been increasing regulations and imposing a carbon tax that increases the cost of living and makes everything more expensive – which is not good for business growth.

Additionally, high energy costs – particularly in Ontario – are pushing businesses south of the border, something that could increasingly take place as time goes on.

This doesn’t bode well for 2018. As the Bank of Canada continues to increase interest rates, and our massive household debt burden continues to grow, escalating carbon taxes and excessive regulations will reduce our competitiveness and put our citizens in even tougher financial circumstances.

Unfortunately, rather than do what’s best for Canadians, our ‘leaders’ are more focused on serving the global elites and virtue-signalling, and this is leading Canada into serious trouble ahead.

Spencer Fernando

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4 comments Add yours
  1. GOOD FOR DONALD TRUMP AND BAD FOR JIHADI AROGANT JUSTIN TRUDEAU who assumed everything will fall to his feet; do his bidding in silence. Businesses are not going to stick around with piles of regulations forced down their throats.
    Stephen Harper and Donald Trump both stood by ISRAEL and for that, both were rewarded with strong economy even during the tough recession we faced, we manage to create 1 million new jobs. Yet, under Justin, we apparently are losing jobs and there is no world recession. However, with all these regulations and high taxes, he will cause or force Canada into a recession while he lives in wealth.

    1. Here’s a question how is it that standing by Israel amounts to receiving economic awards? Gee I thought that the USA were the leaders of the free world LOL! We are ruled by Very evil and very treacherous people!

  2. When the banks and the taxman put the screws to people who have limited options because of their debt load, freedom and equality are already gone. What would be perceived by debt free people as a stick becomes a carrot to debt slaves. Does foreign investment sound good? Not so much. Especially when Canadians can’t compete with Americans and Chinese investment.

  3. I don’t think the tax cuts will have an immediate impact on Canada as they are deficit financed so many will go on the idea they are temporary, but if Trump (or someone else in the GOP) wins the white house in 2020 and the GOP wins both houses they could become permanent and right at the moment we don’t have the fiscal room to make adjustments if need be. If we had a healthy surplus we could react appropriately to future developments but right now we lack this ability so Trudeau is banking heavily on the tax cuts being reversed, which may happen, but might not. Trudeau seems to assume he can influence the rest of the developed world to change direction much like Thatcher and Reagan did, but we are a small country and the idea others will swing leftward economically because of us is silly. Maybe it will happen, but based on past election results I am somewhat doubtful. Sure Corbyn and Sanders did better than expected, but few thought either would actually win so one could vote for either as a protest vote whereas if either had a realistic chance of winning I am not so sure they would win as people tend to behave differently when a party has a realistic chance at winning as opposed to not.

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