Hugh Mackenzie
Huntsville Doppler
Here we are, well into the Victoria Day long weekend and the sky hasn’t fallen in Muskoka, at least not in the Huntsville area. There were no traffic jams on Friday or Saturday with cottagers rushing to their seasonal residences. A quick, socially distanced tour yesterday evidenced very few line-ups at grocery stores and, most particularly, the LCBO! It was actually quieter in town than it had been mid-week.
The good news is that Chicken Little was wrong. We have not been inundated with tourists and seasonal residents, and common sense and courtesy have prevailed. The bad news is that our local economy, especially small businesses—for whom this particular weekend has always been financially important—took yet another serious hit. It begs the question as to how much longer this can go on.
Here are a few thoughts.
First, COVID-19 is probably the most serious and dangerous pandemic, with world-wide consequences, that the vast majority of us have seen or will see in our lifetimes. The lockdown we have endured over the last two months or so has been life changing and it has been necessary.
But that lockdown has done nothing to cure or eliminate COVID-19. Nor was it intended to. It was the first step in managing the virus; an attempt to control its spread in a manner that allows our health care system to cope with increasing demand and intricate pandemic protocols. Especially in Ontario, that has been largely successful. It means that as the virus continues its course, hospitals and other related facilities and the people who work in them may not be overwhelmed.
Second, decision-makers at all political levels are beginning to recognize that both humanity and the economy cannot endure an almost total lockdown much longer. Plans are well underway to incrementally open things up, not because COVID-19 has been contained but, rather, because we are in a better position to manage it and, as importantly, people are beginning to demand it.
A carefully planned, gradual return to some form of normalcy, keeping necessary protocols such as physical distancing in place for now, is indeed risky, but its time has come. As I have read recently, government cannot control society much longer. Civil disobedience and ignoring the reality of COVID-19 is right on its tail. We are currently witnessing this conundrum in some parts of the United States. We do not want it here.
Enabling people to have more freedom during this pandemic will require a balancing act probably never seen before. It will put leadership skills to the test. As the song goes, this is no time to ‘send in the clowns’.
The reality is that as our society slowly opens up, and it must open up, there will be an increase in the spread of COVID-19 until a vaccine is found and implemented. Balancing that reality with the equal necessity of meeting human needs and safeguarding our economy will require the very best from all political leaders of all political stripes at all levels of government. We can only hope they have it in them.
Third, I have a real concern about the economy. Recently, John Ivison, a journalist with the National Post, said this: “(The) COVID-19 debt binge runs very real risk of ruining the next generation.” I agree with him.
Now I am well aware that crises, such as the pandemic we are currently experiencing and which could well be followed by a serious recession, require government spending. Even Conservatives know that, as evidenced by the deficit the Harper Government built up during the last recession in Canada. What concerns me is both the total lack of preparedness to financially handle a crisis and spending money during this time, purely for political purposes.
The current federal government does not care about debt. Well before the pandemic, they built deficits they had promised not to. Consequently, when they needed it, there was no money in the till.
But still, they are spending, and because much of it is now necessary, the debt is piling higher and higher. I have no problem with necessary spending under current circumstances. The economy needs to be stimulated. People and businesses need support. Resources for health care and infrastructure need to be maintained. I get all of that.
What I don’t get is money being thrown out, under the guise of the pandemic, for what can only be political purposes with an eye on the next election. A case in point is the recent announcement by the federal government of a one-time gift of $300 to every single Canadian over 65 years of age. This may not sound like a lot of money, but cumulatively it comes close to three billion dollars added to a debt our children will have to pay.
It is my view that government money, especially during times like these, should go only to those that need it. There are many people over the age of 65 who may enjoy receiving $300 tax-free but who do not need it and their children or grandchildren will just have to pay it back with interest. To me, it just smells of bad politics and a total disregard for the financial burden government is placing on the shoulders of future generations.
This is why I believe, especially during times like these, that accountability is so important. Governments almost by definition will try to get away with what they can. It is important to not let this happen. If doctors and nurses can be on the frontlines to protect our health, surely members of Parliament can do the same to hold government accountable and protect our democracy, our human rights, and our economy.
We should expect nothing less.
Hugh Mackenzie
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As usual Hugh is a voice of reason among a crowd of alarmists. Thank you
The answer to the $300 not needed by a senior recipient is to pay it forward to those who do. Seriously, it is that simple. I am assuming the money will help some people who really need it. For me, my donation could be used at a local business, given to a charity, or helping a student in debt with their education – you choose, the possibilities are endless. I did not interpret this money as a political ploy. Now, if Trudeau started handing out $5 bills to apartment dwellers in Toronto, after visiting the site, I might have been suspicious.
I agree that both the US and Canada are guilty of throwing indiscriminate money at the economic consequences. I too do not need the $300. But to suggest that this is in any way more rushed and improper that the wholesale handouts to businesses large or small would be wrong.
It is cornerstone tenet of capitalism that weak business need to fail in times of stress in order to maintain misallocation of capital. And yet, the government has once again )as the did in 2008 and as the central banks have done since) provided bailouts to all and coming. Truth be known, many small and large businesses should fail to weed out the week. And the government then asks the individual tax payer to bail out the business sector.
On a separate note, I think history will note that the travesty of this pandemic is that impact on health and the economy could have ended after 3 months with proper management by politicians. Ontario already is below the magical transmission rate of 1. This means that is we had the capacity to test, trace and isolate, we could safely open all the economy (save for the enforced travel from regions with a transmission rate greater than 1 to less infected areas… which of course happened this past weekend). But politicians and health officers do not have the testing and tracing capacity, in spite of 3 months of preparation. And in the meantime, they fail to enforce any of there guidelines. And the cost……likely a second wave of deaths and a limping economy for another 18 months……It didn’t have to happen
During the 2019 campaign, the Liberals said they would increase OAS in July 2020 by approximately $700 for most seniors annually and it would be indexed to keep up with inflation.
Apparently they will not be going ahead with this so giving everyone $300 this month will be a large saving, not a large expense.
There should have been a means test for the $300.00. Our tax returns have all the information required to determine need. In some cases there is a way to send the money back but I haven’t seen one on the CRA website for this. Mine is going back somehow.
Interested to read that the $300.00 is not part of our OAS. Which is taxable. I do hope all who do not need it are making charitable donations. There is much need. Do not wait do it now. We are blessed to not need this money.
The squeaky wheel gets the grease: So if a critical mass of seniors weren’t asking for assistance; they wouldn’t have received any. I can’t even keep track of all the other groups receiving funds (considerably more than $300): frontline workers, small business, larger business which can show a 30% decrease month-to-month, students who lost their summer employment, post-secondary students this fall, people with car/house loans, etc.
So why all the acrimony? I’m a senior seeking employment (and finding ageism running rampant); and it seems that everyone who is better off, wants to deny me this stipend. What is so difficult to understand about “tax-free”? These monies are neither declared; nor are they clawed back.
And Mr. Stewart: The U.S. gave $3.7M to the same lab; as did many other countries after the Ebola and Mer outbreaks. This expenditure does not require justification.
I suggest for the seniors who don’t need it, can donate to those who do….like the food bank.
Jacquie: This is a tax free gift. There is no claw-back for those who don’t need it.
The economists say “it does not cost any interest to borrow money at this point in time” so giving $300 to every senior is a great political move. There are a number of seniors that desperately need this money, they never worked for a union , the government, those companies is associations blessed by the government.
These seniors built and defended this country, the only pension they have is CPP or Old Age Security or both. Many seniors in this group receive help from their families to keep their heads above water, Those who don’t need the help will have this $300 plus clawed back at tax time. This $3Billion will show how generous this Liberal government is and the recovery of these funds at tax time will show how the Liberals have achieved a better than expected economy.
Liberals are experts at slight of hand card tricks, just think about how they have paid large companies to keep employees from joining the unemployed numbers thus skewing those EI numbers? The Trudeau government said before and during the election, they had no intention of trying to reduce Canada’s debt. Perhaps Canadians need to say, they have absolutely no intention of ever paying back the money they are now receiving, after all it is the governments debt, NOT THEIRS.
I totally agree with Hugh and Andy Hanna.
I also wonder why we needed to give $830,000 to the Virology lab in Wuhan?
I totally agree with you Hugh. What does 300.00 do for those that don’t need it and for those who can use extra income? Not much! Total waste. Obviously they are not really concerned about seniors in need!
This is a hard call as many Sr. do need this money – food is more expensive Latest figures indicated up 2.5% over last month. For those who do not need it income tax will come next year and it will be taxable as will many of the programs that are being accessed. This method is more cost efficient that have millions of applications and running up civil service wages
I would guess that many Sr who need this addition $, probably, do not have access to computers – homeless do not have a street address. I will pay my 300.00 back willingly, and glad those of my “neighbours” may have some help.
This is not over yet and I hope everyone will keep safe Expand your bubble slowly and keep distancing – I wish I could have a physical hug from my grand children rather than a virtual hug.
We too do not need the $300. It is an insult that the Liberals think this is a vote getter. And sad to say I think they are right. People will vote for whoever gives them the most free stuff. So many people are shallow and gullable and go for the free stuff without a moment of care about where all the largess comes from. If you doubt this ask yourself why the Liberals are in power. It is an indication af an ignorant society.
I agree about a decent alternative. The NDP are scary. The Greens are entirely hopeless and the Torries, so far, have botched their abundant chances. Why oh why?
I despair!
Good points Hugh. I agree with you.
As a senior who does not need the $300 present, I agree with you 100%. The Liberals should know that this gift has cost them my vote (in spite of a complete absence of a desirable alternative). I will find an alternative.