Canadian economy close to recession | Toronto Star
While there are all kinds of attempts to place a brave face on the Canadian economy, it seems certain that Canada is headed for slower economic times. Suggests it is probably a good time for consumers to review their own personal financial circumstances, and financial plan.
Canada’s real gross domestic product – the broadest measure of economic health – shrank for the fourth month in half-a-year in May, falling 0.1 per cent, well below economist predictions of a 0.2 advance.
And Canadian exporters hoping for a resurgence in the United States received more bad news with the announcement the American economy grew at an annualized pace of 1.9 per cent in the April-June quarter – most due to the temporary-and-now-spent $170-billion government stimulus package that had many economists predicting a 2.4 per cent bump
But no amount of sugar coating can hide the fact that Canada’s economy remains at best stalled, and with little signs the engine will turn over soon.
Today marks one week of financial turmoil in the world markets, a fictitious and fabricated recession – only one problem with that specific wording – The only country that truly has any problems is the USA. All these financial institutes should get a grip on reality and themselves – they are no different than our own households. When things go bad with household income – the leader of the house or the person that runs the household, makes precise decisions in order to curb the losses sustained or the losses predicted to be sustained before they happen. This has not been evident with the US financial institutes – they have been mismanaged for years, and now the mismanagement has reached to the point of no return. Yes, many will say that banks and lending institutes from abroad have also contributed to take a loss – this is only because these financial institutes took risks as any business does – it could have been profitable and non of us would have heard of any repercussions when earning billions of dollars – but now that they have lost, and they ask for hand-outs, we now hear of the problems related to the hard economic times we now face. – well ladies and gentlemen “Business is Business”, and it is unfair for governments or countries (via “on the backs of tax payers”) to bear the brunt and contribute in order to keep these mismanaged companies afloat. If these financial institutes have made bad decisions – then they should be allowed to fail. Had any of us faced the same circumstances – the banks and governments would have ushered us to go into bankruptcy – the two scenarios should be no difference. These governments have absolutely no right in allowing any bailout programs.
The Canadian Government as well as the British, Italian, German, Iraqi and European governments should all band together and spell out that their counties do not share the same financial problems as the USA, and that these financial problems are solely that of the USA, and the USA should not drag other countries down with their financial worries
Stock markets around the world should not be reacting negatively, instead Canadian, Italian, British, German and most European countries should all be booming with indexes going up not down
The media has done an excellent job securing false and fabricated fears in the world markets
Facts – the USA has more debt than any other country
The USA continually spends billions on a war that they should not be involved with
The USA will never be able to pay off its debt in our lifetime
These are the facts
Tony Vario
October 11, 2008 at 4:25 am
Dear editor,
I would like to express my complete disappointment with first of all the Oil Companies and then our Governments at all levels for allowing a rip off to occur daily. I am not in the least bit upset when companies turn over an honest profit – it is good for the economy and everyone that is employed in this country that I love so dearly. I am a little disappointed however, in that we have seen oil prices hovering around the $140.00 per barrel this last summer, and gas prices were in or about $1.40 per litre for regular gasoline, and yet when Oil prices jumped $1.00 per Barrel – the oil companies instantly increased the prices of Gasoline by one cent per litre, and when the oil prices began to drop – the pump prices at the pumps dropped at less than the 1% mark converting to litres. (IE $1.00 per barrel increase = 1 cent increase at the pumps).
Mr. Editor, I was in Florida last week and prices are hovering around the $2.00 per gallon mark – given that the American gallon is 3.77 litres – and allowing $2.00 for that gallon – the price for one litre of Gasoline is 53 cents per litre – with the 25% exchange rate – the price climbs to 66 cents per litre – our oil companies are charging 85 cents per litre = that is a 28% ripoff. And should we now speak of the premium for high octane gas better known as premium unleaded – the US charges aprox 10 cents per gallon – we in Canada charge anywhere between 12 to 14 cents per litre – that is 45 to 73 cents per US Gallon which is again a complete irresponsible rip off in which someone is making anywhere between 300% to 600% in profits at the backs of Canadian Taxpayers (and that is not even taking into account the 25% premium on the US Dollar).
Given the statistics – we would be better off to have the Oil prices rise to $80.00 a barrel – in which gas prices would then stabilize at 85 cents per litre, and our dollar would climb to $0.96 US and our economy would flourish – our repayment on our debt would be more manageable because we pay our interest based on US Dollars – and I could go on and on and on. I think our politicians should either speak out against the gouging or go back to school and learn Mathematics 101. We do not need to be Einstein to figure this out – it is just that the Canadian public is just too gullable and we in the end accept whatever is thrown at us.
Tony Vario
Tony Vario
February 18, 2009 at 1:22 am
Hear yee, hear yee, hear yee
I must say that I am a bit upset and surprised over the turn of events within my Province of Ontario and Canada for that matter.
Taxes, taxes and more taxes – when shall the people of Ontario unite and refuse to pay these taxes. Enough is already enough. We can no longer pay for these obscene taxes. The very taxes that are bleeding taxpayers dry. We have no more money to give away. We do not have the disposable income to pay for the extravagance of Mr. Dalton McGuinty’s Governing Liberals. A good government would have found the money elsewhere to finance all the shortfalls elsewhere without introducing new forms of taxes. Shortfalls, by the way caused by the overspending Liberals. The Ontario Government just brought in the HST which in most instances will cost every family in Ontario an average of approximately $900.00 per year let alone the negative financial impact that it will have on families which choose to purchase a new home that could cost an additional $60,000 in the form of Taxes. This government is infatuated with stealing from the working middle class taxpayer in Ontario.
Lets touch onto the HST and gasoline. Mr McGuinty has imposed a provincial sales tax on gasoline for purchases made in Ontario – what about the current aprox. 14% of provincial gas tax before the HST was imposed – should that tax not have been eliminated when the HST was introduced by our governement? And if this tax is really legal – are we paying 8% on top of all the taxes already buried into the cost of a litre of gas or should it be 8% on top of the cost from the oil company of a litre of gas before taxes. There is a difference if you break down the costs. Now that we the taxpayers in Ontario allowed the Provincial Liberals access to our pockets, is the Ontario Government is going to place tolls on all 400 series highways in order to gain additional surplus cash – another irresponsible means of taking more money out of our pockets.
Property taxes, and the fair market value assessment – is not at all fair, and you cannot tell me that the average person should pay more for his house in the way of taxes just because he is in an area in which his house has quadrupled in value. The homeowner does not have the money in his hands to pay for the added taxes. If an individual purchased a home in 1970 for lets say $40,000 – his taxes at that point would have been aprox $700.00 per year plus the cost of living indexed to inflation. This is the benchmark that should be followed until that particular house has been sold and a new benchmark for value has been established for that home when the new homeowner has purchased the home, and thus now a new revised property tax for that house would be in effect. The poor guy that bought his home in 1970 for $40,000 and started paying $700.00 a year in taxes is now (with our new way of thinking via fair market value assessments) is now forced to pay possibly $8000.00 a year in property taxes which, should this person be on pension earning $18,000 a year can no longer afford to keep his home. Lets do the math – $8000 for prop taxes, $2000 for Natural Gas $1200 for Insurance $1500 for electricity $700 for water $700 for telephone, $800 for cable $1500 for car insurance $1000 for vehicle fuel equaling $17400 plus the new HST on top of that, and that individual has not even factored in the purchase of any food yet. In essence, this government is now forcing this individual to sell his home in order to survive. Shame on this government for causing our seniors to become demoralized.
Income taxes – we pay far too much – the poor guy that requires two jobs to support his family is being screwed over. Instead of allowing this guy to pay normal taxes for his primary job and then independently paying ¼ of the applicable tax on the second job –our government says that Mr. Consciencious Citizen is now in a higher taxable bracket and now pays based on the new income – even though he is giving up his quality bonding family time in order for a better future – he is now more broke than ever before with less money in his pocket and now he is stressed out beyond belief trying to make ends meet. This is why we will eventually have an underground economy within the next year where many people will wish to pay by means of CASH in order to get away from paying taxes. Our governments are forcing law abiding taxpayers to revert to this because the government is skimming all taxpayers money right off the top. Wow if we look at taxation and lets say we all earn an average of $50,000 a year and we pay aprox 30% in taxes from income and we then pay another $5000 in property taxes, another $4000 in miscellaneous taxes on purchases being made during the course of the year that equals to $24,000 or 48% of your wages to towards taxes and government. Gee an average business only makes after taxes 10% while the government makes 48% on my money – kind of a unfair business practice don’t you think
I would urge all the people in Ontario to refuse to pay any form of tax until this problem is rectified. But I cannot speak on anyones behalf. We can no longer pay for the wreckless spending brought about by our federal and provincial governments
It seems to me that all tax payers in Ontario have been tightening their belts unlike the Provincial Liberals who have learned to overspend ever since Mr. McGuinty has taken office. Mr. McGuinty’s liberals do not know how to find money without imposing new forms of taxes
Mr McGuinty is forcing skilled trades to conduct underground business thereby eliminating their tax burden
Mr McGuinty is choking our provincial economy. People in Ontario are now re-assessing their expenditures and are beginning to take cost cutting measures into their own households
Many people are now transferring their license plates when utilizing seasonal vehicles to avoid the dumb move by the Ontario Government to make sure that by validating a license for less than a year- will still cost one year’s fee.
People of Ontario are now not purchasing that second vehicle and are opting to keeping their current one for an additional two to three years because taxation and insurance is costing a whole lot of money. This Government has allowed insurance companies to write their own tickets and gouge the general public. We choose to profile young drivers under the age of 25 and tell them that their insurance coverage will be as much as 500% more even though a new driver has had no accidents or any moving violations. It’s just speculated that this person may be a higher risk – and penalize him just because he is underage. We however will not profile other minorities who have a track record of bad driving and horrific accidents. Kind of a double standard.
People of Ontario are now getting rid of that second cell phone, and are now opting for one telephone line in their homes
Let me tell you what this government has done single handed
Financial Printing – the government has said that you do not have to print annual reports – the printing industry, the pulp and paper industry, the binderies, the mailing houses, and of course the Provincial and Federal Government- let alone the labour force that is involved in the printing of these financial reports are now NOT GENERATING ANY REVENUE – and that is not just the labourers – but also both forms of governments in the taxes that they have lost.
Then there is the building trade – new homes – The Ontario Government is discouraging people from buying a new home because they want aprox $50,000 in HST – this government is telling the people of Ontario “Don’t buy that new home, keep the Architects, Surveyors, escavators, Concrete formers, Framers, rough carpenters, bricklayers, plumbers, electricians, finish carpenters, roofers, steamfitters, gasfitters – all unemployed, along with appliance manufacturers unemployed because without the new homes no one will be buying new furniture, new appliances, new pots and pans, new TV’s new Lawnmowers, new carpeting, etc, etc, etc” Gee Mr McGuinty, this is all manufactured goods from ONTARIO, just look at how much Provincial taxes on top of lost labour have you just deprived Ontario of, and now you want to impose new taxes to offset the blunder this government has created with honest good labour and manufacturing. Mr. McGuinty says this HST will create more jobs – I beg to differ. Given the facts, the HST will create more unemployment in Ontario
Mr McGuinty – should get rid of some of his crony advisors in his legislature as they have put this province into an alarming disarray – and if allowed to continue on the way it has (a destruction course) – this Province will end up going into bankruptcy
Signed
Mr. Maybe I may run for political office next time to fix the screw-ups
Tony Vario
July 7, 2010 at 4:19 pm