Political Christmas Gift

Canada’s de facto ruling coalition is delivering a political Christmas gift of $342.65. The math:

• $250 for each Canadian earning less than $150,000
• A 5% reduction in the federal sales tax rate on the anticipated average Christmas spend of $1,853 -$92.65

Isn’t Inflation the Problem?

And this to help Canadians deal with the cost of living. So the world has struggled with inflation for the last few years and finally seemed to be getting it under control, at least in Canada. I never liked the narrative blaming this problem on the Canadian government of the day as it was a global issue . But this political Christmas gift is a made-at-home inflation feeder.

And the Cost

These measures may bring some Christmas relief. However, this temporary solace has a hefty price:

• The sales tax holiday – $1.6 billion
• The $250 cheque program – another $4.68 billion
• A total of $6.28 billion

Hey Canada! Add that to your $1.4 trillion deficit. Oh! It is but a rounding error! I thought it might be fun to look at what this looks like in numbers: $6,280,000,000 / $1,400,000,000,000 =.0045%.

Shouldn’t It be About Options

So how could this rounding error have been better spent for lasting effect:

1. Maybe not spent at all
2. To allow for the aggregation of independent living units for the chronically homeless across the country. At say $400,000 a door, that would mean 15,700 tragically unhoused off our streets. Probably more as there are chronically homeless couples. The long term positive impacts include reduced health care costs, police and justice cost savings, and improved city environments – incredible.
3. To provide concessionary capital to stimulate the aggregation of purpose built apartments at rents adjusted to income. At $100,000 a door – 62,800 truly affordable housing units. Oh, and just imagine that these units are built on government land at no cost. The long term impact – more housing supply equals rent stabilization. And affordable rents leave more disposable income.
4. Or your favourite cause that would have a long-term beneficial impact

Common Sense or Nonsense

First – Is this Santa bearing Christmas Gifts? No, it is the Grinch.

Common sense or nonsense – well you already know the answer – nonsense!