Impact of CERB and the Closure the Economy
BY: Hadi Rasoul
During this pandemic, Justin Trudeau and his federal party have announced an emergency relief fund known as the Canada Emergency Response Benefit. This benefit is one that is taxable by the government and it was made to help relieve Canadians who are unemployed during the current pandemic, or those who are generating low income.
In theory, CERB sounds great, but once looked at you will begin to wonder if CERB is really benefiting the economy. The issue with CERB is it serves as an incentive for people to stay home. During this pandemic, the government must decide if they wish to place people's lives first or the economy. This response benefit created in response to COVID-19 will hurt the economy as now the government is inflating the Canadian dollar and encouraging people to stay home rather than returning to work. The reality is, by not returning to work we only increase the damage the economy will feel. The damage caused by this current pandemic could very well lead to depression due to the fact that our GDP will go down and there will be little to no stimulus in the economy since everyone is quarantined at home. Some argue that the current pandemic is worse than depression but what they fail to realize is that a great depression significantly lowered the living quality of all humans. This reduced quality of life led to an increase in mortality rates and wreaked havoc upon the people and their businesses.
In the ideal world, we would all be able to quarantine at home for as long as possible until a vaccine is found but this is not a feasible solution, opening the economy back slowly will help mitigate the damage and the inflation that the current government is causing and it also helps prevent us from falling into a depression. The way things currently stand, a recession is inevitable and has been bound to happen for some time now. If we do not open the economy soon and encourage people to return to work if they are able to then we may very well have another depression on our hands.