Business
COVID response closed more Canadian businesses than 2008 financial crisis: gov’t report
From LifeSiteNews
StatsCan revealed that they are witnessing an increase in ‘zombie businesses,’ a phenomenon which occurs when owners never file for bankruptcy but simply walk away from their business.
Statistics Canada has revealed that more businesses closed as a result of the COVID-induced economic downturn than the 2008 financial crisis.
On October 25, Statistics Canada reported that the COVID-19 “pandemic” caused a record number of small businesses to shut down, with many owners never filing for bankruptcy but instead simply walking away from their companies, resulting in a large uptick in a phenomenon called “zombie businesses,” according to information obtained by Blacklock’s Reporter.
“This finding represents a larger increase than observed during the 2008 financial crisis when the exit rate increased by one percentage point,” wrote analysts.
The 2007- 2008 financial crisis, also called the Global Financial Crisis, is considered the most severe worldwide economic crisis since the Great Depression of 1929.
Business exits refer to the permanent closure of a business and can occur without a formal process, meaning owners can walk away from their businesses without declaring bankruptcy.
According to StatsCan, exits increased at the same time as bankruptcies fell, which is partly because courts were closed due to COVID lockdowns.
However, analysts noted that exits did not appear in bankruptcy court statistics, adding, “Formal insolvencies are not the whole story. Formal insolvency is but one path a business in distress may take.”
“The COVID-19 pandemic had a substantial impact on business dynamics leading to the temporary or permanent closure of many businesses,” analysts continued.
According to a Department of Industry estimate, Canada had 1,198,632 small businesses before COVID lockdowns. While the number has been revealed to have decreased drastically since then, federal agencies have failed to record comprehensive figures on the economic impact of COVID lockdowns and regulations.
“In my view there are hundreds of thousands of zombie businesses, businesses that are essentially dead but haven’t finalized the closure process altogether,” Dan Kelly, CEO of the Canadian Federation of Independent Business, testified at 2020 hearings of the Senate national finance committee. “We are seeing greater numbers of business failures that actually haven’t been reported. We’re only at the tip of the iceberg.”
According to a 2022 Bank of Canada survey, only an estimated half of businesses reopened after being closed by COVID lockdowns. The research tracked 12,976 businesses throughout Vancouver, Toronto and Ottawa including bars, restaurants, shops, nightclubs and motels, which were locked down by COVID regulations in April and May 2021.
“Half of businesses recorded as temporarily closed in May had reopened by the end of September,” the Bank reported. “Forty percent were still hibernating. Ten percent were closed for good.”
Statistics Canada’s report comes as Liberals MPs recently opted for a closed-door review by Minister of Health advisers of how the Canadian government handled the COVID-19 “pandemic” instead of launching a public inquiry.
In recent months, numerous reports have emerged revealing the Trudeau government’s mismanagement during the COVID-19 “pandemic.”
In a 2021 report Pandemic Preparedness, the Auditor General revealed that the cabinet was “not adequately prepared.”
Furthermore, Lessons Learned From The Public Health Agency Of Canada’s COVID-19 Response, an internal audit, condemned managers for “confusion,” “limited public health expertise” and “no clear understanding” of how to compile critical data.
Additionally, former Finance Minister Bill Morneau declared that spending programs to tackle COVID were prolonged and led to inflation under Prime Minister Justin Trudeau’s leadership.
During the so-called COVID-19 pandemic, the Trudeau government issued billions to Canadians who claimed they needed Canadian Emergency Response Benefits (CERB) as they were not permitted to work under COVID regulations.
Recently, the Canadian Revenue Agency (CRA) has worked to take back the $3.2 billion from Canadians who filed for and were given CERB despite not being eligible to receive it. However, many are fighting in court to keep their government payments.
Business
Trump’s Initial DOGE Executive Order Doesn’t Quite ‘Dismantle Government Bureaucracy’
From the Daily Caller News Foundation
By Thomas English
President Donald Trump’s Monday executive order establishing the Department of Government Efficiency (DOGE) presents a more modest scope for the initiative, focusing primarily on “modernizing federal technology and software.”
The executive order refashions the Obama-era United States Digital Service (USDS) into the United States DOGE Service. Then-President Barack Obama created USDS in 2014 to enhance the reliability and usability of online federal services after the disastrous rollout of HealthCare.gov, an insurance exchange website created through the Affordable Care Act (ACA). Trump’s USDS will now prioritize “modernizing federal technology and software to maximize efficiency and productivity” under the order, which makes no mention of slashing the federal budget, workforce or regulations — DOGE’s originally advertised purpose.
“I am pleased to announce that the Great Elon Musk, working in conjunction with American Patriot Vivek Ramaswamy, will lead the Department of Government Efficiency (‘DOGE’),” Trump said in his official announcement of the initiative in November. “Together, these two wonderful Americans will pave the way for my Administration to dismantle Government Bureaucracy, slash excess government regulations, cut wasteful expenditures, and restructure Federal Agencies.”
The order’s focus on streamlining federal technology and software stands in contrast to some of DOGE’s previously more expansive aims, including Elon Musk’s claim that “we can [cut the federal budget] by at least $2 trillion” at Trump’s Madison Square Garden rally in November. Musk now leads DOGE alone after Vivek Ramaswamy stepped down from the initiative Monday, apparently eying a 2026 gubernatorial run in Ohio.
The order says it serves to “advance the President’s 18-month DOGE agenda,” but omits many of the budget-cutting and workforce-slashing proposals during Trump’s campaign. Rather, the order positions DOGE as a technology modernization entity rather than an organization with direct authority to enact sweeping fiscal reforms. There is no mention, for instance, of trillions in budget cuts or a significant reduction in the federal workforce, though the president did separately enact a hiring freeze throughout the executive branch Monday.
“I can’t help but think that there’s more coming, that maybe more responsibilities will be added to it,” Susan Dudley, a public policy professor at George Washington University, told the Daily Caller News Foundation. Dudley, who was also the top regulatory official in former President George W. Bush’s administration, said the structure of the new USDS could impact the recent lawsuits against the DOGE effort.
“I think it maybe moots the lawsuit that’s been brought for it not being FACA,” Dudley said. “So if this is how it’s organized — that it’s people in the government who bring in these special government employees on a temporary basis, that might mean that the lawsuit doesn’t really have any ground.”
Three organizations — the American Federation of Government Employees (AFGE), National Security Counselors (NSC) and Citizens for Responsibility and Ethics in Washington (CREW) — separately filed lawsuits against DOGE within minutes of Trump signing the executive order. The suits primarily challenge DOGE’s compliance with the Federal Advisory Committee Act (FACA), alleging the department operates without the required transparency, balanced representation and public accountability.
The order also emphasizes not “be construed to impair or otherwise affect … the authority granted by law to an executive department or agency, or the head thereof; or the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.”
“And the only mention of OMB [Office of Management and Budget] is some kind of boilerplate at the end — that it doesn’t affect that. But that’s kind of general stuff you often see in executive orders,” Dudley continued, adding she doesn’t “have an inside track” on whether further DOGE-related executive orders will follow.
“It’s certainly, certainly more modest than I think Musk was anticipating,” Dudley said.
Trump’s order also establishes “DOGE Teams” consisting of at least four employees: a team lead, a human resources specialist, an engineer and an attorney. Each team will be assigned an executive agency with which it will implement the president’s “DOGE agenda.”
It remains unclear whether Monday’s executive order comprehensively defines DOGE, or if additional orders will be forthcoming to broaden its mandate.
Business
Opposition leader Poilievre calling for end of prorogation to deal with Trump’s tariffs
From Conservative Party Communications
The Hon. Pierre Poilievre, Leader of the Conservative Party of Canada and the Official Opposition, released the following statement on the threat of tariffs from the US:
“Canada is facing a critical challenge. On February 1st we are facing the risk of unjustified 25% tariffs by our largest trading partner that would have damaging consequences across our country. Our American counterparts say they want to stop the illegal flow of drugs and other criminal activity at our border. The Liberal government admits their weak border is a problem. That is why they announced a multibillion-dollar border plan—a plan they cannot fund because they shut down Parliament, preventing MPs and Senators from authorizing the funds.
“We also need retaliatory tariffs, something that requires urgent Parliamentary consideration.
“Yet, Liberals have shut Parliament in the middle of this crisis. Canada has never been so weak, and things have never been so out of control. Liberals are putting themselves and their leadership politics ahead of the country. Freeland and Carney are fighting for power rather than fighting for Canada.
“Common Sense Conservatives are calling for Trudeau to reopen Parliament now to pass new border controls, agree on trade retaliation and prepare a plan to rescue Canada’s weak economy.
“The Prime Minister has the power to ask the Governor General to cut short prorogation and get our Parliament working.
“Open Parliament. Take back control. Put Canada First.”
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