Nina Malik, seen here on March 18, 2020, says she has seen revenue at Gags N’ Giggles plummet by a stunning 90 per cent as the coronavirus froze the tourist trade during during March break.The federal government plans to spend $3.8-billion to subsidize wages at small businesses over the next three months, but business groups say the measures will not stave off significant job losses as the fight against the coronavirus devastates the economy.
And Ottawa’s assistance for business is dwarfed by steps taken or being contemplated elsewhere. In Denmark, the government is providing subsidies of 75 per cent of wages, with the maximum payout per employee 10 times higher than the amount in Canada. Wage subsidies are the biggest component of the spending package that New Zealand rolled out last week, with a maximum subsidy per employee four times higher than Canada’s and a maximum subsidy paid to each employer five times higher.
Lindsay Tedds, an associate professor of economics at the University of Calgary, said Ottawa’s fiscal response is relatively small, and that the subsidy program would allow companies to retain only a handful of workers. “We need much bolder action,” she said, adding that it is a positive that the federal government has moved relatively quickly to launch economic stimulus.
globebusiness Not gonna be enough. People will go underground and blackmarket as a result of all this.
globebusiness Business cares nothing for workers
globebusiness Well not everything can be saved. Maybe this is what the world needs. To be reset a little. Give employers some perspective
globebusiness Big business will take handouts and still lay people off.