Trudeau Economy: Surge In Number Of Canadian Businesses… Going Bankrupt

826 businesses filed for insolvency in Q3.

There has been a surge in Canadian business, but not a good one.

The number of businesses going bankrupt in Canada jumped by 4.1% in the third quarter of the year. There was a 5.9% increase in companies filing proposals to pay part of the debt they owed. In September alone, the number of bankruptcies/proposals surged by 17.5%.

It’s the biggest jump in insolvency filings in six years.

Alberta, Manitoba, and Quebec saw the biggest increases of business going bankrupt.

According to BNN Bloomberg, the sectors with the biggest increase in bankruptcies were manufacturing, construction, retail trade, and transportation.

Insolvencies had been declining on a long-term trend since around 2012, so the reversal is quite a concern. It also comes at at time when debt repayment costs for Canadian households (the most indebted in the world), are rising as interest rates go up. The negative impact of taxes also can’t be ignored, as rising taxes are taking another bite out of consumers pockets, which also hurts businesses.

And on top of all that, there is an investment collapse, as investors turn to other countries instead of investing in Canadian businesses.

All of that adds up, and we’re seeing the consequences.

Welcome to the Trudeau economy.

Spencer Fernando

Photo – YouTube

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Sewer Rat
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Sewer Rat

Bankruptcies balance themselves…

NancyW
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NancyW

The early 1990’s the Lieberals collapsed a whole lot of companies, and personal bankrupts were never so high, so it is all in the U.N. LIEberal/ndp plan for their plan of “successfully running a country”, so why do they keep getting voted in? – I still think the last election was fixed, and now they have bought the mainstream media, scary.

Cris
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I agree. The liberals are very corrupt look at what’s happening in the USA.

Eric Blair
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Eric Blair

The only business insolvency that I like to see is the Toronto Star or TS.B on the TSX. Now at a paltry 96 cent per share. They are losing money bigtime so expect to see them get the lion share of the media bailout money. But that would be good (taxpayer’s) money after bad. Hey the liberals still have the Globe and Mail to support them and the CBC of course.

shawn harris
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shawn harris

To no one’s surprise, socialist economics has once again proven itself to be the fraud it has always been. Canadians, especially Ontarians have seen this movie before and it ended extremely badly, with the world’s largest sub sovereign debt 325 billion dollars, 15 billion deficit and numerous business and personal bankruptcies and lost jobs. Now Canada, is starting to see and feel the full impact of what socialist economics, driven by a combination of political correctness and social justice warrior thinking will and has produced. Very high taxes , low and stagnant wages, strangulating business taxes and regulations always produce… Read more »

.Peter black
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The Rock Star has the young people. The unions and media have been bought. The exploding public sector will vote for who pays their wages and benefits. Butts and Telford have their puppet perfectly in place.there are not enough voters left to defeat Liberals. We are F#+$””D

Cris
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Time for the Liberals to call a election, before Canada is totally destroyed by Trudeau’s incompetence.

Catanddog
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Catanddog

Now it the time for a vote of non confidence…………Sheer is too “nice” to do it.

Clive Edwards
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Clive Edwards

I suspect if you were to investigate, the cause of most of these bankruptcies would be taxes and regulatory costs. The film industry, as clean and “climate proof” as any and therefore not subject to effective government control with environmental regulations, is supported by tax credits. Governments want to claw these tax credits back and they can’t go after the producers or the big studios and distributors so they claw back from the small independent contractors who make the movie industry possible. It’s not just the taxes, it’s the “penalties and interest” that accrue for running afoul of the tax… Read more »

Brian Dougan
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Those percentages reflect the lives & livelihoods of real people. People whose lives have been damaged/ruined by this horrid buffoon.

Mike
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Mike

6700 companies in Alberta alone in 3 years.