Hard working Canadians have to have a little more money to spend and invest says Justin Trudeau

By André Faust

Fredericton – Justin Trudeau was the guest speaker at the Back to School BBQ hosted by Matt DeCourcey, Fredericton Liberal riding candidate at the Charlotte Street Arts Centre.

In the course of his speech Trudeau spoke about strengthening and expanding the middle class, which during the last ten years has been dwindling under the Harper government.

Trudeau’s plan for economic growth seems to have its roots in Keynesian economics. Keynesian economics states that economic growth can only come about from the aggregate demand created by households and business. To stimulate aggregate demand can only be made possible by deficit spending, which is diametrically opposite to austerity, which the Harper government has been doing.

During a recession austerity measures is not the solution because household stops spending money, which has a negative domino effect throughout the economy. During a recession according to Keynesian philosophy, you want to increase spending.

According to Justin Trudeau.

In order to create economic growth, Hardworking Canadians have to have a little more money in their pockets to spend, to invest, to save, to grow the economy to create a better future for their kids.

And speaking of kids when it comes to people who are working hard to join the middle class. People who need a little extra help were going to focus on a number of different things. First of all more generous Canada child benefits for a family earning, a single mom earning 30,000 dollars or less, that 6,400 dollars for a kid under a year tax free, a cheque of over 500 dollars every single month. A plan that will lift 315 thousand kids out of poverty. That a real plan.

We announced today significant improvement to EI so that the seasonal workers for people who are challenge through a difficult period in their lives will have better access to the benefits that they paid into, at the same time we will be decreasing premiums for Canadians across the country.

These are the kind of solutions that a smart government that listens to experts, that listens to community leaders, and to provincial leaders, and mostly listens to Canadians, is actually willing to put forward because that is what we need most of all.

How to cook up a fiscal crisis for political gain

By Scott Clark and Peter DeVries

The most important fiscal action the Conservative government took after being elected in 2006 was to cut the GST by two points. At the time — and ever since — every credible economist in Canada said it was a bad, bad idea. With a general election less than a year away, now seems like a good time to run a ‘what-if’ scenario.

The Conservatives for years vowed that they would eliminate the deficit of $55.6 billion recorded in 2009-10 by 2015-16. And the government has been aggressively cutting government spending on programs and services since 2010. Despite recent declines in oil prices, the federal deficit will be eliminated in 2015-16 — possibly even a year earlier.

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Spain: the pain of austerity deepens

By Giles Tremlett (The Guardian)

Unemployment in Spain already stands at 26%. Crowds scavenge the streets at night for food. And life is about to get tougher still.

A family prepares to sleep on the street in Madrid. Oxfam says that by 2022, 38% of the Spanish population could be in poverty. Photograph: Susana Vera/Reuters

Forget, for a moment, the Greek tragedy. The tale of social woe set to play out in Spain this year is both bigger and more important to the world. For the drama of rescuing the euro, or letting it sink, will be played out on Spanish soil.That is not to say Spaniards will have it worse than Greeks, though Eurostat figures show only Bulgaria and Romania now have a higher percentage of people deemed at risk of poverty. Spain’s economy will shrink, once more, by 1.5% – a dramatic enough figure, though one most Greeks would happily settle for. But Spain represents a quantitative leap in Europe’s ongoing tale of misery. Its economy is five times bigger than Greece’s – accounting for 12% of the . And there are almost twice as many Spaniards as there are people in Portugal, Ireland and Greece together.As Spain enters another year of recession, Europe’s politicians offer only one remedy. It must swallow more of the harsh medicine of austerity. But will it survive the cure? And will the spiral of decline really come to a halt towards the end of the year, as Prime Minister Mariano Rajoy promises?

Already the country’s social fabric is tearing. Family networks keep the working class going as unemployment hits 26%. Fewer than half of those aged under 25 find work. Anecdotes of misery abound. Grandmothers with memories of the “hungry” 1950s cook up large pots of lentils to feed unemployed grandchildren. At night, small crowds gather outside supermarkets in poorer neighbourhoods of Madrid, seeking thrown-out produce. In middle-class neighbourhoods ghostly figures wander the streets rummaging through bins by night.
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Egypt Stocks Drops as Constitutional Referendum Protests Continues

Concerned on Democratic Rule, Egypt’s President Mohammed Morsi  Granted himself new powers that can’t be challenge legally, his claim has added fuel to the countless of protests that Egypt has been experiencing,  Recently Egypt has seen anti austerity protests, and currently protesters who oppose and those who support  the Constitution Referendum.   Investors are showing anxiety by withdrawing their investments in Egypt which represented a 10% drop.  But is this because of fear of instability or is to create more financial hardships holding the protestors at fault for the hardship.

Egyptian President,Mohammed Morsi Granted himself new powers that can’t be legally challenge.

Currently , the focus of the demonstrations are on the Constitutional referendum,  The Islamists are Claiming victory on this first round claiming that 56% voted for the draft constitution, while the opposition alleges referendum rigging.
Mohamed ElBaradei Has warned Moris in a tweeter Message

“In light of Egypt’s evident and dangerous, division, will you realize the necessity of being a president of all Egyptians?  Country split, flagrant irregularities, low turnout, disillusions with Islamist on the rise, Illiteracy remains a hurdle.”

Will there be an economic, social and political disaster in store for Egypt as the second rounds of constitutional votes begins.  This is very bad timing for Egypt, the Budget deficit is growing with aggressive austerity measure being put in place and to add to injury their pound is much weaker than the American dollar. Continue reading