Jan 19, 2021

Now that vaccines for Covid-19 are becoming more available, all Canadians are now expected to have access to the shot by the end of 2021. It would seem the crisis will soon be over and life will get back to normal. But will it? Since the start of Covid and limitless government spending to control it, an economic storm has been brewing. It has already reached gargantuan size and continues to grow by the day.

With the stock market hitting all-time highs it would seem the economy is doing a good job weathering the outbreak. Whats not obvious though, is the current economy is being propped up by unpresidented, massive government spending. By the end of 2021 it would not surprise me if it amounted to close to a trillion dollars. All money the government doesn’t have.

When the pandemic is over in late 2021 the government will have to curve its unsustainable spending and the storm will begin. Unemployment is already over 8% and thousands of businesses have gone under. When government spending stops, thousands more supported businesses will fail. Unemployment will climb. As individual subsidies end, it will lead to personal hardships only experienced so far by a handful of people, mostly small business owners. On top of all this, we will have to deal with a trillion-dollar deficit.

How quickly covid subsidies are withdrawn, how much money is invested in the economic recovery, and how far in the future deficit responsibilities are pushed out, make predicting our economic future even more complicated than predicting the virus itself. One thing is for sure, we are in for dark economic times. On top of this, Canada is not the only country in this situation making this worldwide problem even more complex.

Dave Lister

listerlogic.com