Canadian PM Says Financial Depression Possible

December 16. 2008

U.S. president George W. Bush and his wife Laura

Canadian Prime Minister, Stephen Harper, today stated a financial depression is possible. I’ve thought and stated the same for a year now. Each government will have to work diligently, putting forth their best effort to stave off that very plausible scenario returning full blast.

America was the worst hit in this crisis, as the problem originated in the U.S., with the numbers reflecting this fact. However, other nations such as Great Britain and Japan have taken serious hits as well.

The main buffer Britain has is the high tax rate of 40%, which led to a stockpile of government funds over the years. The country is well maintained and very modern. The government is also planning a relief program for homeowners struggling under their mortgages, which is a good measure.

However, for non-homeowners, the British government could scale back on exorbitantly priced rented homes they grant to the unemployed and implement software to cross-reference how many people in a single household are collecting checks from the state.

I do believe granting financial assistance to those that need it is admirable, but there should be limits on just how much is given.

Britain has 60,000,000 people. Some households are raking in several thousand pounds per month in unemployment benefits with their rent paid by the government, whilst living in multi-million pound homes, because there is a gap in the system.

That is not assistance, but underwriting a lavish lifestyle that a working family bringing in 60,000 – 100,000 pounds per year and paying taxes on said income, would enjoy from their hard work.

I’ve read quite a few articles regarding unemployed families of 5-8 people, raking in 10,000 pounds ($15,000) per month in unemployment benefits. There are doctors, solicitors, barristers and accountants not making that sum per month, working long hours at their respective jobs.

The benefits are too generous and in some cases should only be a fifth to a third of the remitted figure. By all means assist the unemployed, but shouldn’t more of that government money go to creating jobs within Britain.

In America, some of president-elect Barack Obama’s ideas are decent, but not raising taxes on the rich is a mistake, especially the oil companies. They can afford it. Many of the nation’s rich citizens and oil companies made money off America. A small tax hike wouldn’t leave them homeless or hurting.

In Jamaica, the prime minister, is proposing implementing a stimulus package aimed at boosting tourism, while helping homeowners with a legislative package that will temporarily, “Suspend or reduce mortgage payments for the unemployed.” That’s a good idea. You could also take it a step further and lower the duty on goods coming into the island and restructure tax laws for companies, to get more businesses in and trade flowing at a greater rate.

Depression possible: Canadian PM

Canadian PM Stephen Harper: A Depression Is 'Possible'

Prime Minister Stephen Harper delivered a grim forecast for the Canadian economy, saying in an interview with broadcaster CTV a depression is possible.

"The truth is, I've never seen such uncertainty in terms of looking forward to the future," Harper told CTV. "I'm very worried about the Canadian economy."

Asked whether a depression was possible, he answered: "It could be, but I think we've learned enough about depression; we've learned enough from the 1930s to avoid some of the mistakes that caused a recession in 1929 to become a depression in the 1930s."

A depression is often described as a prolonged economic slump in which output drops more than 10 percent...

http://www.breitbart.com

Under the Homeowner Mortgage Support Scheme, households with loans of up to £400,000 will be able to defer interest payments for up to two years if they suffer a sudden and temporary loss of income...

http://www.mailonsunday.co.uk

Jamaica announces economic stimulus package

KINGSTON, Jamaica -- Jamaica's prime minister has announced a plan to boost the Caribbean island's economy with new aid for small businesses and the tourism industry…

He also plans job retraining programs and initiatives to suspend or reduce mortgage payments for the unemployed.

http://www.miamiherald.com