Trudeau gears up to spend even more money

trudeau

Trudeau is making an announcement now. He just tweeted: “We’ve had your backs throughout this pandemic – and we’re going to continue to be there for you. To make sure you have the help you need, we’re expanding eligibility for key support programs.”

I tend to think that patience is running out on covid restrictions and spending or at least that it will after schools are closed again in January.

Update: The new announcement changes the definition of ‘lockdown’ to 50% capacity and that will allow companies to access benefit programs. That comes with the caveat that they can’t pay dividends or raise executive salaries. The measures will cost $4 billion.

This spending is inflationary and adds to the case for the BOC to raise rates, though it will be politically impossible to do so in January, given omicron and this spending. March is certainly in play.

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