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Banks in Canada Warn Over Trudeau Inflation and Unsustainable Debt

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2 years ago

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Trudeau Inflation and Unsustainable Debt in canada

Banks and economists in Canada warn that Prime Minister Justin Trudeau’s plan to increase annual spending by billions of dollars will lead to unsustainable debt, especially if economic growth is weaker than expected.

To compete with the US Inflation Reduction Act, Finance Minister Chrystia Freeland’s latest budget added C$43 billion ($32 billion) in net new costs over six years, primarily by increasing healthcare spending and clean-technology subsidies. According to Derek Holt, an economist at the Bank of Nova Scotia, overall program spending is set to balloon to 51% above pre-pandemic levels by 2028, contradicting her description of the budget as prudent.

“Big spending, big deficits, big debt, high taxes, high inflation, and bond market challenges are not the path to prosperity,” Holt wrote in an investor report released Wednesday, describing the country’s federal and provincial governments as “addicted to high spending.”

The increase in spending comes despite the government projecting C$34 billion less revenue over the next six years than in November. Higher interest rates are expected to harm economic growth.

inflation canada

“Canada has moved beyond its post-1990s and pre-pandemic voter apprehension of big spending promises and has entered a new era driven by massive spenders at the federal and provincial levels of government,” Holt said. “The risk is that the deficit will grow even larger if GDP performs worse than expected versus the budget’s use of stale forecasts from February — before the recent turmoil — that project no contraction.”

Furthermore, the green subsidies announced in Freeland’s budget become more generous over time. While the budget estimates that the net cost of the various green tax credits will be around C$20 billion over the next five years, the finance department estimates that the cost will exceed C$80 billion by 2034.

When asked about Holt’s report, Trudeau and Freeland defended their spending as necessary, arguing that Canada is in a better fiscal position than its Group of Seven counterparts.

Freeland also stated that the green incentives would help growth in the long run, citing former Bank of Canada Governor Stephen Poloz’s budget assessment. “If you make investments that increase the country’s economic capacity, that is fiscally responsible,” she told reporters in Ottawa.

The fiscal projections in the budget are fraught with risk, according to John Manley, finance minister under former Liberal Prime Minister Jean Chretien, in 2002 and 2003.

He said that if deficits worsen, future governments may be forced to make difficult decisions about program cuts. In the 1990s, Chretien’s government had to take drastic measures to bring Canada’s debt under control, and Manley claimed that his budget as Industry Minister was severely cut.

“If Liberals don’t want to face that kind of calamity, it’s far better to carefully manage the growth of your expenditures and revenue,” Manley said on BNN Bloomberg Television. “Because otherwise, there will be a reckoning, and someone will have to face it.”

inflation canadaPeople in Canada are struggling to keep up with rising costs.

Rising prices have impacted nearly everyone in Canada, and many believe they have reached a tipping point. According to Global News, new data shows that more than half of Canadians struggle to keep up with inflation.

Rising prices have impacted nearly everyone in the country; some believe they have reached a tipping point. According to new data, more than half of Canadians are struggling with inflation.

According to a recent Ipsos poll, 32% of people are struggling to meet the rising costs of everyday necessities.

This is just one of several statistics highlighting the country’s current financial difficulties.

“22% of Canadians, or more than one in every five, say they are completely out of money.” “They’re saying they can’t afford any more household expenses,” said Sanyam Sethi, vice president of Ipsos Public Affairs.

“Things aren’t going well. The concerns are nowhere near being addressed.”

According to a poll, one-fifth of Canadians are ‘completely out of money’ as inflation bites, over half of Canadians struggle to make ends meet, and women are the most concerned about their finances.

“Women are nearly twice as likely as men to say there is no way they can pay more for household expenses or necessities because they are completely tapped out,” Sethi explained.

Women are concerned that they will not be able to feed their families, and women’s shelters in Kelowna say their resources are in high demand because people require assistance.

“Whether it’s this year, five years ago, or, sadly, five years from now, we’ll always be full.” “With or without an economic crisis, that’s just our reality,” said Allison Mclauchlan, executive director of the Kelowna Women’s Shelter.

Borrowing costs rise as the Bank of Canada raises its benchmark interest rate.

According to Mclauchlan, it can also be difficult for women who have escaped an abusive situation to regain financial stability.

“Think about a woman who has been financially abused for ten years and has no bank account, no savings, no earnings and how difficult that is,” McLauchlan explained.

Residents in Kelowna told Global News that rising living costs had forced them to change their spending habits.

With gas prices rising again, more than 55% of Canadians were concerned they couldn’t afford it.

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Geoff Brown is a seasoned staff writer at VORNews, a reputable online publication. With his sharp writing skills he consistently delivers high-quality, engaging content that resonates with readers. Geoff's' articles are well-researched, informative, and written in a clear, concise style that keeps audiences hooked. His ability to craft compelling narratives while seamlessly incorporating relevant keywords has made him a valuable asset to the VORNews team.

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Sonic the Hedgehog Dominates Christmas Wish Lists

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2 hours ago

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2024-12-21

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Sonic the Hedgehog
Sonic the Hedgehog Merchandise are hot Christmas Items

Sonic the Hedgehog is dominating Christmas wish lists this year. The lovable blue hedgehog is back in the spotlight, from sonic the hedgehog toys and games to sonic the hedgehog coloring pages and movie hype.

Sonic-themed holiday merchandise is on fire, from quirky sweaters to action figures flying off shelves. Sonic the Hedgehog Christmas outfits for kids are selling out fast, making them a go-to gift option for festive fun.

Retailers have been quick to recognize Sonic’s holiday appeal. Special promotions and exclusive items, like the Sonic holiday t-shirts, are everywhere.

Everyone’s stocking up on Sonic merchandise, from big-box stores to boutique retailers.

Online shopping platforms are seeing a surge in searches for Sonic items. Whether it’s Sonic Christmas-themed tops or Sonic the Hedgehog coloring pages, Sonic the Hedgehog toys or Sonic and the Hedgehog 3, the demand is skyrocketing.

Retailers who tap into this trend are sure to see strong holiday sales.

Sonic has been around since the early 90s, but his popularity never wanes. With the release of Sonic 3, fans are more excited than ever.

sonic the hedgehog 4

Sonic the Hedgehog 4

Meanwhile, Paramount Pictures is preparing “Sonic the Hedgehog 4,” with the newest addition in the family-friendly genre set for a spring 2027 release.

The announcement comes as “Sonic 3” opens in theatres on Friday, estimated to gross $55 million to $60 million from 3,800 North American locations.

The sequel is shaping up to be a good holiday season blockbuster for Paramount, which explains the desire in future “Sonic” adventures. On the international front, the film will be released on Christmas Day in 52 markets.

On Rotten Tomatoes, critics gave “Sonic 3” an outstanding 87% fresh score.

The first two films grossed a total of $725.2 million at the global box office and generated over $180 million in global consumer expenditure through home entertainment rentals and digital purchases.

They also inspired a spinoff Paramount+ series, “Knuckles,” which premiered earlier this year.

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Amazon Strike Called By Teamsters Union 10,000 Walkout

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1 day ago

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2024-12-20

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Amazon Strike Called By Teamsters Union
Teamsters members were demonstrating at "hundreds" of other Amazon locations.

An Amazon strike has hit facilities in the United States in an effort by the Teamsters union to pressure the corporation for a labour agreement during a peak shopping season.

The Teamsters union told the Associated Press that Amazon delivery drivers at seven facilities in the United States walked off the job on Thursday after the firm failed to discuss a labour contract.

According to the union, Amazon employees in Teamsters union jackets were protesting at “hundreds” of additional Amazon facilities, which the union billed as the “largest strike” in US history involving the company.

The corporation, which employs over 800,000 people in its US delivery network, stated that its services will be unaffected.

It was unclear how many people, including members of Germany’s United Services Union, participated in Thursday’s demonstration. The Teamsters union reported that thousands of Amazon employees were implicated in the United States.

Amazon Strike at 10 Locations

Overall, the group claims to represent “nearly 10,000” Amazon strikers, having signed up thousands of people at roughly ten locations across the country, many of whom have joined in recent months.

The organization has claimed recognition from Amazon going on strike, claiming the firm illegally neglected its obligation to bargain collectively over salary and working conditions.

The Teamsters is a long-standing US union with nearly one million members. It is well-known for securing lucrative contracts for its members at companies like delivery behemoth UPS.

Most of the Teamsters’ Amazon campaigns have concerned drivers working for third-party delivery companies that partner with the tech behemoth.

Amazon denies that it is liable as an employer in those circumstances, which is a point of legal contention. In at least one case, labour officials have taken a preliminary stance in favour of the union.

Stalled Contract Negotiations

Amazon employees at a major warehouse on Staten Island in New York have also chosen to join the Teamsters. Their warehouse is the only Amazon facility in the United States where labour officials have formally recognized a union win.

However, the Amazon strike is because contract negotiations have not progressed since the 2022 vote. It was not one of the areas scheduled to go on strike on Thursday.

Amazon, one of the largest employers in the United States, has long received criticism for its working conditions and has been the target of activists seeking to gain traction among its employees.

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Amazon Encounters Numerous Strikes As Unions Aim At The Holiday Shopping Surge.

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1 day ago

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2024-12-19

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Amazon

(VOR News) – Thousands of Amazon employees at various sites across the country were scheduled to go on strike on Thursday in an effort by the Teamsters union to pressure the retail behemoth to acknowledge its unionised workers in the United States.

The walkout is expected to concentrate on seven Amazon locations across the country during the holiday purchasing surge and may be the most significant union action against Amazon in the nation’s history.

The business announced on Thursday morning that there had been no effect on operations. It also stated that it is “continuing to concentrate on fulfilling customers’ holiday orders.”

The International Brotherhood of Teamsters maintains that it represents more than 10,000 Amazon employees and contractors in aviation centres, warehouses, and delivery centres.

Amazon has refused to acknowledge the union for many years.

The retail giant, which employs approximately 1.5 million individuals, excludes contractors and part-timers. A strike has been initiated by delivery couriers and warehouse employees at seven distinct locations in order to exert pressure on the company to negotiate a collective bargaining agreement that would encompass modifications to compensation, amenities, and working conditions.

Picketing was intended for New York, Atlanta, Los Angeles, San Francisco, and Skokie, Illinois.

Also, the Teamsters assert that they are establishing picket lines at “hundreds” of additional warehouses and delivery centres by encouraging non-unionized workers to picket under U.S. labour law, which protects workers’ ability to take collective action to further their interests.

“Amazon workers are exercising their power,” Randy Korgan stated to NPR.

“They now realise there is a pathway to take on a corporate giant like this – and that they hold the power.” Amazon responds by accusing the Teamsters of fabricating information regarding the strikes, asserting that the participants are “entirely” outsiders rather than employees or subcontractors of the corporation.

Amazon spokesperson Kelly Nantel stated that “the reality is that they were unable to secure sufficient support from our employees and partners and have invited external parties to harass and intimidate our team.” For more than a year, the Teamsters have been intentionally misleading the public by claiming to represent “thousands of employees and drivers.” They do not.

The Teamsters did not provide a specific duration for the strike; however, they informed NPR that it would extend beyond one day. Workers would receive $1,000 per week in strike money, as per the union.

Teamsters President Sean O’Brien issued a statement in which he stated, “If your package is delayed during the holidays, you can attribute it to Amazon’s insatiable greed.” We established a firm deadline for Amazon to attend the meeting and treat our members equitably. They disregarded it.

The Teamsters granted until December 15 to convene with its unionised employees and develop a collective bargaining agreement.

Amazon has opposed all unionisation efforts in court, asserting that unions were not advantageous to its employees and emphasising the compensation and benefits that the organisation currently provides.

Amazon has been accused of discriminatory labour practices on numerous occasions, including the termination of labour organisers. Furthermore, it has disputed its official status as a contract employer.

Teamsters organize Amazon delivery couriers and other employees.

In June, Amazon established its first unionised warehouse in Staten Island, New York, two years after making history by voting to join the fledgling Amazon Labour Union, which is also affiliated with the Teamsters.

The union is one of the most influential in the United States and Canada, with 1.3 million members. On Thursday, the German United Services Union declared that Amazon employees in Germany would participate in a strike in conjunction with their American counterparts.

In the past, Amazon has experienced demonstrations in Germany and Spain that were related to the holiday season in order to advocate for improved wages and working conditions.

“The holiday season has arrived.” Delivery is anticipated. Patricia Campos-Medina, the executive director of Cornell University’s Worker Institute, asserts that “this is the moment in which workers have control over the supply chain.”

The Teamsters have reported that Amazon’s profits have increased both during and after the pandemic. The corporation is currently valued at over $2.3 trillion, with net income of $15 billion in the most recent quarter alone. It is the second-largest private employer in the United States, following Walmart.

SOURCE: NPR

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