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Banks in Canada Warn Over Trudeau Inflation and Unsustainable Debt

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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.

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“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 Thomas is a seasoned staff writer at VORNews, a reputable online publication. With his sharp writing skills and deep understanding of SEO, he consistently delivers high-quality, engaging content that resonates with readers. Thomas' 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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Tesla Cuts The Price Of Its “Full Self Driving” System By A Third To $8,000

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2024-04-22

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NEW YORK — Tesla reduced the price of its “Full Self Driving” system — which cannot drive itself and requires drivers to remain attentive and ready to intervene — by nearly a third to $8,000 from $12,000, according to the company website.

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Tesla Cuts The Price Of Its “Full Self Driving” System By A Third To $8,000

Tesla CEO and billionaire Elon Musk stated in 2019 that there would be a fleet of robotaxis on the road by 2020, but that promise has yet to be fulfilled, and the system must still be supervised by humans.

The cutbacks, which took effect on Saturday, follow Tesla’s decision to trim $2,000 off the pricing of three of its five models in the United States late Friday. That is the most recent example of the difficulties that the electric vehicle manufacturer is facing.

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Tesla Cuts The Price Of Its “Full Self Driving” System By A Third To $8,000

Tesla dropped the costs of its most popular model, the Model Y, a small SUV that is the best-selling electric vehicle in the United States, as well as the Models X and S, which are older and more expensive. Prices for the Model 3 car and Cybertruck remained unchanged.

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Tesla Cuts The Price Of Its “Full Self Driving” System By A Third To $8,000

The price cut comes a day after Tesla’s stock fell below $150 a share, wiping out all gains recorded in the previous year. The Austin, Texas-based company’s stock price has fallen almost 40% this year due to declining sales and growing competition. Discounted sticker prices are intended to entice more car purchasers.

SOURCE – (AP)

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Japan’s Anti-Monopoly Body Orders Google To Fix Ad Search Limits Affecting Yahoo

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2024-04-22

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TOKYO — Japan’s antitrust authority stated Monday that Google, the US search giant, must rectify its advertising search restrictions that impact Yahoo in Japan.

The Japan Fair Trade Commission said in a statement that a recent investigation into Google’s activities revealed that it was hurting fair competition in the advertising sector.

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Japan’s Anti-Monopoly Body Orders Google To Fix Ad Search Limits Affecting Yahoo

Yahoo Japan Corp., which later merged with the Japanese social media platform Line, began offering keyword-targeted search advertising services utilizing Google’s technology after the two businesses forged a partnership in 2010.

The FTC claims that Google imposed limits in its search advertising deal with Yahoo Japan for more than seven years, limiting its ability to compete in focused search ads.

An FTC investigation into whether this violated the Anti-Monopoly Law prompted Google to lift the limitations.

Google said in an emailed statement that it has fully cooperated with the commission’s investigation and that the agency has not determined that it has breached antitrust laws. It committed to follow the commission’s orders and provide “valuable” search services to Japanese consumers and marketers.

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Japan’s Anti-Monopoly Body Orders Google To Fix Ad Search Limits Affecting Yahoo

Line Yahoo declined to comment.

Google will be subject to a three-year review to ensure that necessary improvements are implemented, according to the commission. It did not impose any fines or other penalties on Google, which remains popular in Japan.

The commission’s decision comes after another setback for Google in Japan. Japanese doctors launched a civil case against the corporation last week, seeking damages for what they call baseless, insulting, and frequently inaccurate statements.

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Japan’s Anti-Monopoly Body Orders Google To Fix Ad Search Limits Affecting Yahoo

The Tokyo District Court lawsuit seeks 1.4 million yen ($9,400) in damages for 63 medical professionals who posted ratings on Google Maps.

Google responded by saying it is working “24 hours a day” to remove misleading or incorrect content on its platform, using human and technology resources “to delete fraudulent reviews.”

SOURCE – (AP)

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Tesla reduces US prices for 3 of its electric vehicle models following a rough week.

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2 days ago

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2024-04-21

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Tesla reduced the pricing of three of its five models in the United States by $2,000 late Friday, highlighting the issues facing the electric vehicle firm run by billionaire Elon Musk.

The business reduced the costs of the Model Y, a small SUV that is Tesla’s most popular model and the best-selling electric vehicle in the United States, as well as the versions X and S, which are older and more expensive versions. Prices for the Model 3 car and Cybertruck remained unchanged.

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Tesla cuts US prices for 3 of its electric vehicle models after a difficult week

The reductions dropped the starting price for a Model Y to $42,990, $72,990 for a Model S, and $77,990 for a Model X.

The decision comes a day after Tesla’s shares fell below $150 per share, wiping out all gains earned over the previous year. The Austin, Texas-based company’s stock price has fallen almost 40% this year due to declining sales and growing competition. Discounted sticker prices are intended to entice more car purchasers.

Musk announced early Saturday on X, the social media site that was previously known as Twitter, that the cost of an entry-level Tesla could be as low as $29,490 after accounting for a federal tax credit and gas savings.

Industry observers have been waiting for Tesla to unveil the Model 2, a tiny electric vehicle for approximately $25,000. This month’s media rumors that Musk intended to cancel the project added to uncertainty about the company’s direction, but Musk denied the reports.

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Tesla cuts US prices for 3 of its electric vehicle models after a difficult week

The price drops marked the end of a long workweek for Tesla, which said on Monday that it would be laying off 10% of its global workforce, or approximately 14,000 employees. The company also announced the recall of roughly 4,000 of its 2024 Cybertrucks after discovering that the accelerator pedal could become stuck, enabling the vehicle to accelerate accidentally and increasing the danger of a crash.

Musk stated on Saturday that he has postponed a planned weekend travel to India to meet with Prime Minister Narendra Modi due to “very heavy Tesla obligations.” He expressed on X that he was looking forward to rescheduling the visit for later this year.

Tesla is slated to report first-quarter profits on Tuesday.

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Tesla cuts US prices for 3 of its electric vehicle models after a difficult week

The business stated earlier this month that its global sales declined substantially from January to March as competition grew, electric car sales growth stagnated, and previous price cuts failed to attract additional buyers.

Tesla’s quarterly sales fell year on year for the first time in nearly four years.

SOURCE – (AP)

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