7/25/2019 Liberal New Deal

1/10

My 2020 VISIONJanuary 2016

Our dollar is less than US $0.70

Is this our Canadian money y 2020!

A Hundred years ago, in 1916,we were halfway thru a worldwar, and four years away from the ROARING 20s

!he "#onomi# $oom of the 20s was a healing sal%e for the

aftermath of the Great &ar and the '(anish )lu "(idemi#

&ill 2020*e the start of an era of (ros(erity for +anadians

he Liberal's new deal for canada:

7/25/2019 Liberal New Deal

2/10

7/25/2019 Liberal New Deal

3/10

Its the song of the #entury, isnt it

Not enough money for Health#areNot enough money for '#hools

Not enough money for Roads and Infrastru#tureNot enough money to (ay the National e*t

.arents#ant afford good food for their #hildren'tudents#ant afford +ollege or 7ni%ersity edu#ation'eniors#ant afford (ro(er housing, #are or nutrition

I' !H" .RO$/"5 A /A+8 O) 5ON"4

Its on the news and o%erheard in #offee sho(s e%erywhereGo%ernmental e*t is due to o%ers(ending, waste, (oor management,yada yada yada If we only had enough money

"%eryone dreams of winning the lottery, not *e#ause they *elie%ethat it would sol%e e%erything, *ut *e#ause they are daily *om*ardedwith situations that s#ream,

,Mo- Money+

!oday thousands of +anadians are :o*less, and e%en homeless *e#ause of la# of money!ea#hers are unem(loyed while #lass si;es *alloon and s(e#ial needs #lasses are #ut due to

7/25/2019 Liberal New Deal

4/10

$ut thats the (ro*lem isnt it If you and I dont ha%e any money, we #ant s(end it 'o how #anwe get the money mo%ing if it isnt in our (o#ets to *egin with And how #an we (ut moremoney in your (o#et without #ausing more inflation

If you now your history, youll re#all that in Italy, (ost 2 nd&orld &ar, inflation was so *adthat (eo(le were *urning money *e#ause it too a wheel*arrow full of money to *uy a half a

wheel*arrow full of firewood-

I now some of you thin the solution is to #all for a #olla(se of our monetary system and tostart o%er again, *ut that would liely result in a le%el of #haos we would not #hoose to sufferIs there as way that we #an sa%e oursel%es and our #ountry without throwing the *a*y out withthe *athwater

Re#ently in Gree#e the Gree #iti;ens had to suffer fro;en *an a##ounts, and wat#hed astheir money was taen away to (ay for the a#tions of a *anru(t Go%ernment !hats not whatwe want for +anada

In 200B, the &all 'treet tum*le almost destroyed the 7' and threatened to tae down theentire world e#onomi# system !he *ailout (a#age that a%erted that tragedy is still ongoing$illions of money had to *e (oured into the system to (ro( it u(

Now, thin a*out this If the 7' Go%ernment had used that money to (ay the mortgages of thefamilies who were losing their houses, instead of *ailing out &all 'treet, the *ans would ha%estill got the money !he only real differen#e would ha%e *een that those families wouldntha%e lost their homes And theyd *e *uying new #ars with their noClongerCre>uired mortgage(ayments Ha%ing dis(osa*le in#ome is #ru#ial to a healthy e#onomy

'o a su##essful 2020 3ision has to *e one that in#reases s(ending rather than the #urrent *eltCtightening '#rooge e#onomy that we are used to

7/25/2019 Liberal New Deal

5/10

$utit has to *e done in a way that doesnt in#reaseinflation or lead to a $7'! lie the 19D0s or 200B

In the last great days of the Roaring !wenties, (rodu#tion was u(, automation and the su##essof the industrial re%olution was turning the world on its ear 'uddenly, energy wase%erywhere- !he (etroleum industry and the internal #om*ustion engine had li*erated us fromthe lum*ering steam era, and ele#tri#al wires were s(reading a#ross the #ontinent lie as(ider=s we* #arrying the hum of (rodu#tion with it &arehouses were filling u( with ta*lesand #hairs, *eds, shoes, radios, sto%es, fridges, (ots, (ans, mowers, #hewing gum and*reafast #ereal

.rodu#tion was outstri((ing demand *e#ause North Ameri#ans had not yet fully em*ra#ed the#onsumerism mind set !hey were still (reo##u(ied with doing without, maing do, and sa%ingtheir money !he result was disastrous &ith the warehouses full, fa#tories *egan laying offtheir worers !here was no su#h thing as unem(loyment insuran#e, and with their wages #utoff, sa%ing money for a rainy day seemed e%en more im(ortant and the *elt tightening gotmore se%ere /ess (rodu#t sold 5ore layoffs .eo(le *egan to fear that their money might not*e safe in the *ans, and they were right- !he *ans had loaned that money out to industryand the now infamous runConCtheC*ans s#enario ensued

"he Crash o -2 #as elt round the #orld.

&as there a shortage of money No !he money :ust sto((ed mo%ing !he Gro#er wouldn=t hirethe +ar(enter, and so the #ar(enter #ouldn=t *uy the gro#er=s (rodu#ts &hen money mo%es,e%eryone gains, in#luding go%ernments &hen it sto(s, well you might get a de#ade ofwides(read (o%erty

!he D0s was a terri*le (eriod for manind 5ost of the (eo(le who li%ed through it are now

dead, *ut they N"3"R forgot it

)e an3t aord to or4et that lesson either.

It was, howe%er, the *irth(la#e of #onsumer #redit as we now it today +onsumer #redit gotthings mo%ing again and Roose%elts New eal for Ameri#a (ut (eo(le *a# to wor *uildingand re*uilding Ameri#as infrastru#ture !hey *uilt the entire Interstate Road Networ underthis (rogram Its worth noting that the 7' did NO! go to the (ri%ate *ans and *orrow moneyfor this re#o%ery

.rime 5inister !rudeau wants to (ut +anada to wor too, *uilding and re*uilding our agingInfrastru#ture, *ut sadly, he intends to in#rease the National e*t to do it

he Liberal's new deal for canada

+an re*uild our #ountry, i#start our e#onomy and usher in a newera of (ros(erity without adding to the National e*t

7/25/2019 Liberal New Deal

6/10

)our Im(ortant fa#ts

1 Our Go%ernment needs money to o(erate 7nder the (resent system, either we (ayfor it through taEation, or the Go%ernment *orrows it

Although we often #urse it, few would argue that we #ould fun#tion in our modern

so#iety without Go%ernment It (ro%ides us with the so#ioCe#onomi# stru#ture that werely on our health #are and edu#ation systems, our legal and (oli#e systems, roads andinfrastru#ture, rules and regulations &e all #ontri*ute something to the (ro#essthrough one or more forms of taEation, with e%eryone sharing the #ost of (u*li#fa#ilities and ser%i#es

)or de#ades, our taE re%enues ha%e fallen short of enough and our Go%ernment has :ust(ut the *alan#e on our National +redit +ard, ne%er (aying it off, and #onstantly asingfor a higher #redit limit It has to sto( &e 57'! (ay this de*t down

2 In#ome taE is taen off your #he>ue *efore you get your hands on it !his taes thewind out of the sails of our e#onomy

!he largest and most identifia*le, and most re%iled taE is In#ome !aE It is res(onsi*lefor redu#ing your s(ending (ower *y 20 to @0F or more- +anada Re%enue Agen#y nowsthey ha%e to #olle#t at sour#e, or they would ha%e a hellu%a (ro*lem #olle#ting itlater !he real negati%e is that taing this money off the to( is %ery de(ressing to oure#onomy

D 5ortgage interest is the se#ond most offensi%e (layer when it #omes to redu#ed s(ending(ower 5ortgages #an demand u( to 0F of a familys monthly *udget

&hether you are a homeowner or rentor, you (ay mortgage interest It tou#hes e%eryone ande%erything we do in the maret(la#e Anyone who has a mortgage (ays %ast amounts of money

ea#h month in interest Renters are indire#tly (aying their landlord=s interest

'ales !aE is #olle#ted when money is s(ent A $oom "#onomy is a *ustling maret(la#ewhere e%eryone is earning and s(ending money Redu#tion in s(ending is a road to destitutionfor (eo(le, (ro%in#es, and #ountries alie /ie a tree, an e#onomy is either growing, or it isdying

If we #ould rid our monthly *udgets of either In#ome !aE or 5ortgage Interest, theeffe#t would *e astonishing- Our e#onomy would flourish *e#ause

Canadians #ould ha5e more money to s/end+

!he a%erage +anadian family would ha%e an eEtra ?600 to ?1000 a month-

ut ho# an #e aom/lish this!

7/25/2019 Liberal New Deal

7/10

!o understand my 2020 3ision, we ha%e to do the math

ohn +anu# wors as an ele#tri#ian, he has 2 #hildren, a #ar, a tru# and a house

Gross yearly earnings ?B0,000

Allowa*le dedu#tions ?2,000!aEa*le in#ome ?@6,0004early in#ome taEes ?1,005ortgage ?2B0,0005ortgage Interest @F ?1,000

7nder the (resent system, his monthly *udget is roughlyItem Amount $alan#e

Gross &ages ?6,666 ?6,666In#ome !aE ?1,200 ?@,66edu#tionsJ"I, +.., et#K ? 66 ?@,0005ortgage .ayment ?1,@0 ?D,@@0

$an loan, #redit #ard (ayments ?1,B00 ?1,@0)ood, #lothing, utilities ?1,200 ? @@0 Jdis(osa*le in#omeK

At ?@@0, the margin of

7/25/2019 Liberal New Deal

8/10

he Liberal's new deal for canada

If ohn was (aying his mortgage interest to the Go%ernment instead of a (ri%ate *an, in theeEam(le a*o%e, he would *e #ontri*uting ?1,00 !aE and ?1,000 interest Good for the

Go%ernment, *ut it doesnt gi%e ohn any more money to s(end

R"5"5$"R, in#reased dis(osa*le in#ome is GOO )OR !H" "+ONO54

"here is a #ay to mae this #or or John too+

)irst, the me#hani#s

/ord nows we dont need another Go%ernment agen#y, after all, the (ri%ate *ans alreadyha%e e%erything in (la#e for handling mortgages so they #an #ontinue to do this ser%i#e andthe Go%ernment will (ay them for it

&nd #e are 4oin4 to INC*(&S( JO%N3S MO*"'&'( *&"( y 2.89:don3t ha5e a heart atta John; ee/ readin4+uired to (ay AN4 in#ome taE His #ontri*ution to running the #ountryhas already *een satisfied !herefore, ohn=s monthly *udget loos lie this

Item Amount $alan#eGross &ages ?6,666 ?6,666In#ome !aE ? 0 ?6,666edu#tionsJ"I, +.., et#K ? 66 ?6,2005ortgage ? 2,0@0 ?,1@0$an loan, #redit #ard (ayment ? 1,B00 ?2,D@0)ood, #lothing, utilities ? 1,200 ?1,1@0 Jdis(osa*le in#omeK

!hats an ?600 a month in#rease in ohns dis(osa*le in#ome- !he Go%ernment is #olle#ting?21,000 from ohn, of whi#h they (ay ?2B00 J1 of the @FK to the *an for administration !he netresult is a #ontri*ution from ohn of ?19,200

5y 2020 3isiongi%es ohn more money, andgi%es the Go%ernment an eEtra ?@,200 (er year

!here are an estimated 1@ million households in +anada !hat means the (otential

in#rease in annual re%enue #ould *e as mu#h as a who((ing $7= illion-

7/25/2019 Liberal New Deal

9/10

$7= illion+ IS I" "OO 'OO> "O ( "*U(!

&ill the *ans suffer from the loss of re%enue #urrently (ro%ided *y the mortgage maret&ell, remem*er, ohn now has an eEtra ?600 (er month of dis(osa*le in#ome whi#h maeshim eligi*le for more #onsumer #redit whi#h ty(i#ally #arries a higher rate of interest than

mortgages do ohn will (ro*a*ly want to *uy that *oat or R3 he=d dreamed of, or may*e e%enthat summer #ottage, and sin#e the 3ision 2020 'olutiononly affe#ts hisprimary residencemortgage, the *an will still *e the lendor for ohns new #ar and other (ur#hases, as well as#ommer#ial and industrial mortgages et#, et#

In#reased s(ending (ower in the hands of millions of +anadians will *olster the e#onomy somu#h that new *usinesses will s(ring u( and thri%e 7nem(loyment will *e#ome a nonCissue!he #onstru#tion industry will go through the roof /andlords will still (ay *oth mortgage andtaEes JRemem*er, the interestLtaEes 'olutiononly affe#ts (rimary residen#e mortgagesfortaEC(aying +anadiansK 'in#e renters must (ay rent and in#ome taE, they will automati#allywant to own a home *ut will they *e a*le to *uy

oes this (la#e an unfair *urden on renters 5ay*e not 7sing the 3ision 2020 'olution, if ayoung #ou(le who rent de#ide to *uy a house, their dis(osa*le in#ome is a#tually increased."ligi*ility for mortgages is *ased on a*ility to re(ay *ased on their net in#ome %s eE(enses$e#ause the 3ision 2020 'olutionremo%es all or most of the In#ome !aE from the (i#ture,their Net In#ome is a#tually in#reased, and (eo(le who do not >ualify for a @F mortgagetoday, will >ualify for a @F taEMmortgage (a#age on#e 3ision 2020 is im(lementedRental slums will disa((ear )amilies will reno%ate or (ur#hase new homes

A *ooming e#onomy means an in#rease in G'! and (ro%in#ial taE re%enues su#h as sales taE,et# whi#h will *olster the s#hool and hos(ital funding (ro#esses, offering *etter fa#ilities and

:o*s to our talent resour#es $esides, the mortgageMtaEes o((ortunity is so attra#ti%e, that ouryoung (eo(le will want to #ome li%e in +anada, eh-

'ome #ommon dou*ts

1 4eah, *ut where will the Go%ernment get the money to loan out in the first (la#e &ontthey :ust ha%e to *orrow it from the *ans

!he answer is NO

$ans dont ha%e the money they loan out to you, its :ust num*ers in an ele#troni# ledger

&hen you sign mortgage (a(ers for ?D00,000, that money magi#ally a((ears in your *ana##ount right out of thin air, and when you mae your mortgage (ayment ea#h month, the(rin#i(le (ortion of the (ayment goes right *a# where it #ame from (oof, disa((earing intothin air again Only the interest is retained *y the lender

!hat (ra#ti#e is how inflation is #ontrolled If you dont already now that, resear#h ityourself Its a fa#t 'o the Go%ernment does NO! ha%e to *orrow money in order to lend it toyou No in#rease in de*t, and no inflation

7/25/2019 Liberal New Deal

10/10

2 !he *ans will ne%er gi%e u( their mono(oly on .rimary Residen#e /ending-

Really !hen let our (oliti#ians tell us that to our fa#es /et them tell us that our Go%ernmentis (owerless to (ass legislation go%erning the o(eration of (ri%ate lending institutions in this#ountry /et them admit the truth a*out who R"A//4 runs +anada-

&hat are your dou*ts&hat are your o*:e#tions&hat are your >uestions&hat are your ho(es

!ell me- !ell ea#h other- !ell our Go%ernment-

!he im(ortant (oint is to get a dis#ussion going- &hen the *u;; gets loud enough, may*e 5r!rudeau will hear

He says hes listening

)or dis#ussion, email me r:C*aershaw#a

mailto:rj-baker@shaw.camailto:rj-baker@shaw.ca