Since GDP simply adds up all borrowing and spending in the economy, no matter whether undertaken by governments or the private sector and with no regard for what the money was spent on, it’s quite a feat to get a negative GDP number. Nonetheless, Canada seems to have done just that.
Statistics Canada reported on Nov. 30 that third-quarter GDP contracted 1.1 per cent, compared with expectations of 0.1 per cent growth, according to Bloomberg.
What’s truly remarkable is that the decline in GDP has occurred in an environment where borrowing and spending by all levels of government has risen exponentially in recent years. That can only mean that private sector spending must be cratering in order to have an overall decline. And if you’ve had to pay $50 for breakfast for two as I did recently, you can imagine just how tapped out the marginal consumer must be.
I guess out of control government spending and increasing the bureaucracy and regulations isn’t the solution after all. Who woulda guessed?
GDP before all is retarded.
Growth in Canada has been based on the increase in how much more we pay for housing and rent for a long time.
Now the housing market is diving.
Freeland said immigration is Canada’s “secret sauce” to keep GDP growing. Guess that failed. No think through how much worse the average Canadian is when the GDP declines while the population grew. Not good.
I believe the sauce she’s referring to is “nuoc mam”, it’s a fermented rotted fish sauce popular in Asia. And apparently here.
It appears she has a pants-load thereof…
“A revision to Q2 output prevented the Q3 drop from counting as a ‘second consecutive decline’.”
Stats Canada should be explaining why there was a “revision” that is convenient for the government, so that it doesn’t have to admit a recession is occurring…
Canadian governments are running a deficit of about 3% of the entire economy. If it shrinks by 1, math is easy, private sector shrunk by 4%. Tax revenues for 2023 will shrink in response, interest payments are grinding higher with each new bond, and each refinanced bond. This is a vicious cycle, which will get ugly, fast.
US government is running deficit on the order of 5% of the economy, meaning their reported growth of 5% is actually 0.
Slowly at first, then suddenly is here, will get really bad, really fast.
The war on the economy waged by the Klepto-Green Spending Alliance of the LPC / NDP is being won as the Ghost of Christmas Past descends on the deranged dominion. Capital has fled and productivity is in stasis and the federal government is impeding our most competitively advantageous industries. Spending many billions of borrowed dollars and hiring many thousands of bureaucrats somehow doesn’t make us more prosperous. I guess the silver-spooned snowboard instructor isn’t an economic genius after all – even with the able assistance of silver-spooned Mr. Singh.
Can’t blame him, after all he’s never thought about fiscal policy and budgets balance themselves especially if there is never ending tax revenues that can’t be increased somehow
Related: (DST is Digital Services Tax)
“The DST is a three percent levy aimed at foreign companies—many of which are based in the U.S.—that receive revenue from Canadian subscribers and contributors. According to the Parliamentary Budget Officer, the implementation of the DST would raise $7.2 billion in the next five years.”
That’s another $7.2 billion sucked out of the pockets of Canadians, who happen to subscribe to digital services, and of course that doesn’t include the increased H/GST revenue that will be charged on top of that tax, as it’s built into price increases
Turdeau Junior has run the national electric Hummer into a huge mud-hole, and there is no way to drive it out.
That what eating bugs and liking it looks like.. All that Liberal and NDP money up in smoke.. The fact is, your government would rather pretend to save the world than run Canada properly.. Things are SLOW at work..
When better than 4 in 10 is living at the expense of the other six and demanding we respect their authority at the same time as they waste and destroy what they steal..
Welcome to Kleptocracy.
Well our elites,self styled,call this protecting democracy.
Except we don’t need them.
Not one iota.
But they need us for 100% of their income..
The Parasitic Overload is destruction on steriods.
But they don’t care,they are “helping you”..
And they insist that “They pay taxes too”..
Are they too stupid to understand basic maths?
Or does their self image depend on not seeing ?
Not Sees one and all.
Costs about $150 000* to “employ” one bureaucrat.
So 4 will cost you $600 000.
The six taxpayers would have to pay $100 000 each in taxes for government cost/income to balance.
And our intellectuals Superiors solution?
Hire more bureaucrats and print more “money”..
* Use any number you want.
Salary,benefits,offices,transport..It adds up real fast..
But does not matter .
At 4/10 the tax payer is FUBAR.
Are they too stupid to understand basic maths?
Yes.
Next question?
The great cloward and pivening continues apace.
Not to worry…..the budget will balance itself.