Governments can find themselves at a new baseline spending level far in excess of revenues.
Government Spending & Taxes
For now, the new wage subsidy program will cost $71 billion.
Default risk and exchange-rate risk increase for foreign lenders as they increase their holdings of any government’s debt.
Provincial government debt-service costs are set to reach $13.2 billion this year.
Effectively, the CERB will now cost $40 billion, up from $15 billion.
The principle of no taxation without representation is central to the concept of democracy.
Ottawa will spend up to $27 billion supporting individual Canadians and businesses.
Alberta saw spending reductions of 20 per cent during the reforms of the 1990s.
The unemployment rate rose to 5.9 per cent, in the biggest one-month jump since the 2009 recession.
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