The Strategist

Canada unveils plans to rescue economy in COVID-19 pandemic

09/25/2020 - 03:14

Canada, worried about new outbreaks of the coronavirus infection, declared the second wave. Prime Minister Justin Trudeau delivered a keynote speech outlining the government's key priorities in the fight against the epidemic. He promised not to ration on the fight against COVID-19, create more than 1 million jobs, and also support citizens and businesses, despite the huge public debt.

Sam Barnes/Collision via Sportsfile, flickr
Sam Barnes/Collision via Sportsfile, flickr
The number of cases of COVID-19 has been growing rapidly in Canada since the end of August. Then, the average values were about 300 cases per day, now it is three times more. At the beginning of this week, the largest daily increase since the beginning of May was recorded - 1.7 thousand cases. Justin Trudeau voiced concerns about the development of the disease. “We are on the brink of a disaster that could be much worse than what happened in the spring,” he said.

Prime Minister devoted most of his 55-minute speech to financial issues, noting that "now is not the time for austerity."

The government's plan is replete with new social programs to help families, workers and companies hit by the economic downturn during the pandemic. In addition, the enterprise subsidy program will be extended until the summer of 2021.

One of the most important was the announcement that the cabinet plans to create 1 million jobs for those who have lost their jobs due to the economic crisis. In May 2020, Bloomberg reported 2 million people in Canada who lost their jobs.

Then, as a measure of support to the unemployed in connection with COVID-19, the government began to pay benefits of up to 2 thousand Canadian dollars monthly. 9 million people took advantage of it, which is a quarter of the population of the entire country. These benefits are due to expire on September 26, but Prime Minister said that work is underway to develop a comprehensive unemployment insurance program and new social support measures.

Mr. Trudeau said that the government will do everything possible to cope with the spread of infection and restore the country's economy.

This, he said, will be achieved, including through tax settlement of the situation with the income gap between the richest and the poorest. In addition, it is planned to solve the problem of tax evasion by "digital giants", thereby increasing budget revenues.

However, the measures promulgated by the government may adversely affect the country's economy. The deputy head of the Conservative Party, Candice Bergen, commented on the plans of the liberal government: "They still say that budgets are balancing themselves." As Reuters reports, these measures will bring Canada's budget deficit to $ 256.5 billion, the highest since World War II.