With people being asked to stay home, the government had to do something big.
The Trudeau government has messed up much of the Coronavirus response. Particularly, the refusal to restrict travel from China when the pandemic was still containable there – something I called for months ago – and the failure to lock down the border until just recently (with Roxham road inexplicably still open) has been a massive error.
With that said, the Trudeau government is getting things right on the economic side.
With Trudeau’s announcement today of an $82 billion Coronavirus economic response package, he has done what must be done on the economic side of this crisis.
As many have said, the key at this point is to recognize how unprecedented this situation is. The government is asking people not to work, while people still need to pay debts, rent, and buy essentials like food.
Companies can’t just simply pay people endlessly not to work.
That leaves the Bank of Canada and the Government of Canada to step in as the only two organizations able to create money (Bank of Canada) and then send money out to the population (Federal Government).
It’s what the United States is doing, where they are planning to send cheques directly to Americans, ramp up business lending from the government, and create more money to preserve liquidity through the US Federal Reserve.
That’s the right move in the US, and it’s basically what Trudeau is doing here in Canada.
Trudeau’s move to announce the financial measures quickly was essential to stop panic, as people are going to quickly run out of money otherwise.
Of course, there will be a time to worry about the long-term financial impact of this spending. But right now, we have to deal with one crisis at a time. We need to survive the health crisis and keep the core economy alive. For now, that must be the focus.
So, while Trudeau and the Liberal government had made some huge mistakes – and are still making mistakes by leaving Roxham road open – they are getting things right on the financial side of this Coronavirus Crisis.
And with our nation facing unprecedented difficulty, we need to stand together and give praise to actions that are worthy of praise.
Photo – YouTube