7.3.3 Financial Impact of the COVID-19 Pandemic Response on Canada

Introduction

The actions of the various levels of government, private organizations, and individuals during the COVID-19 pandemic caused unprecedented disruption to the economy of Canada.

The announcement of the pandemic and subsequent implementation of pharmaceutical and non-pharmaceutical measures resulted in significant economic damage, ranging from widespread job losses to business closures and government debt accumulation.

This section explores the financial impact of the pandemic on Canada, delving into its effects on various sectors of the economy and the measures taken.

According to testimony from Dr. Jordan Peterson, a new disease was detected, which was not well understood, and the authorities panicked and used that panic to impose tyranny. In order to avoid responsibility for their actions, they abdicated their political responsibility to hypothetical experts in public health.

Both political leaders and citizens allowed these non-elected officials to use terror to justify implementation of restrictions. These same officials then unleashed unbridled spending on measures that were actually caused by the restrictions imposed by them. The actions of the government caused “untold economic damage“ to all sectors of our economy.

The best way to try to evaluate the damage discussed by Dr. Peterson is to review the data provided by the Treasury Board of Canada to understand the magnitude of spending that was carried out.

Witness David Leis stated that the costs of the mandates were profoundly damaging in all aspects of our society including economics. He further stated that governments did not follow their emergency plans to mitigate these effects.

Evaluation of the totality of the economic effects are well beyond the scope of this report; however, the testimony received did point to a number of specific areas of economic impact and further suggested other significant sources of economic impact which are not yet understood.

Economic Contraction and Unemployment

The pandemic measures led to a sharp contraction of the Canadian economy as restrictions on movement and business operations severely disrupted various sectors. Industries such as hospitality, tourism, retail, and entertainment were hit hardest, resulting in widespread layoffs and business closures.

According to Statistics Canada, the country experienced its steepest economic decline on record in the second quarter of 2020, with a contraction of 11.5 per cent.

The increase in unemployment rates was one of the most significant financial consequences of the pandemic. Many individuals lost their jobs or faced reduced hours, causing financial instability and impacting their ability to meet basic needs. The unemployment rate surged from 5.6 per cent in February 2020 to a peak of 13.7 per cent in May 2020, representing millions of Canadians affected by the economic fallout.

As noted previously, significant taxpayer funds were expended to provide economic support to workers who were forced into an unemployed situation due to the government-imposed mandates.

At the same time, many workers who lost their employment for refusing the mandated injection were refused employment benefits.

Government Spending and Debt Accumulation

As a response to the government‘s own actions in implementing the mandates and various other unnecessary and ineffective measures, the Canadian government implemented significant fiscal measures.

These measures included direct support to individuals and businesses, wage subsidies, and increased healthcare spending. The Canada Emergency Response Benefit (CERB) provided temporary income support to those who lost their jobs or income due to the pandemic. The Canada Emergency Wage Subsidy (CEWS) aimed to help businesses retain employees.

According to the Treasury Board of Canada, the federal government‘s expenditures related to COVID-19 included the following:

2020–2021:  $134.9 billion

2021–2022: $ 40.1 billion

2022–2023: $ 6.0 billion (to February 2023 only)

Total:  $181.0 billion

To illustrate where this money was spent, a breakdown of the COVID–19 expenditures for 2020–2021 are provided by the Treasury Board as follows:

Canada Emergency Response Benefit (CERB)

$65.23 B

Safe Restart Agreement

$15.88 B

Canada Recovery Benefits

$14.47 B

Further Support for Medical Research and Vaccine Developments

$ 3.18 B

Canada Emergency Student Benefit (CESB)

$ 2.95 B

Essential Workers Wage Top–up

$ 2.88 B

One-Time Payment for Seniors Eligible for Old Age Security (OAS) and the Guaranteed Income Supplement (GIS)

$ 2.46 B

Canada Emergency Commercial Rent Assistance (CECRA) for Small Businesses

$ 2.15 B

Safe Return to Class

$ 2.00 B

Canada Recovery Caregiving Benefit

$ 1.97 B

Regional Relief and Recovery Fund

$ 1.87 B

Funding for Personal Protective Equipment and Supplies

$ 1.80 B

Cleaning Up Former Oil and Gas Wells

$ 1.72 B

Supporting Provincial and Territorial Job Training Efforts as Part of COVID-19 Economic Recovery

$ 1.50 B

Enhancing Student Financial Assistance for Fall 2020

$ 1.35 B

Supporting Indigenous Communities in the Fight Against COVID-19

$ 1.03 B

Expanding Existing Federal Employment, Skills Development, Student and Youth Programming

$  879.99 M

Rapid Housing Initiative

$  870.44 M

Support for Persons with Disabilities

$  810.30 M

Support for International Partners

$  698.77 M

Safe Restart Agreement Federal Investments in Testing, Contact Tracing, and Data Management

$  533.26 M

Support for Cultural, Heritage, and Sport Organizations

$  497.87 M

Support for Canada‘s Academic Research Community

$  434.46 M

COVID-19 Response Fund

$  430.46 M

Canada Recovery Sickness Benefit

$  419.84 M

Support for the Homeless (through Reaching Home)

$  394.08 M

Indigenous Public Health Investments

$  387.43 M

Emergency Community Support Fund

$  349.70 M

Support for Workers in the Newfoundland and Labrador Offshore Energy Sector

$  320.00 M

Supporting a Safe Restart in Indigenous Communities

$  314.77 M

Canada Emergency Response Benefit Administration Costs

$  309.38 M

Canadian Armed Forces Support for the COVID-19 Response

$ 292.37 M

Enhancing Public Health Measures in Indigenous Communities

$ 278.98 M

Support for the On-Reserve Income Assistance Program

$ 262.18 M

PPE and Related Equipment Support for Essential Workers

$ 254.22 M

Canada Revenue Agency Funding for COVID-19 Economic Measures

$ 242.90 M

Support for COVID-19 Medical Research and Vaccine Developments

$ 239.29 M

Support for Indigenous Businesses and Aboriginal Financial Institutions

$ 228.80 M

Quarantine Facilities and COVID-19 Border Measures

$ 228.50 M

Health and Social Support for Northern Communities

$ 179.60 M

Support for Food Banks and Local Food Organizations

$ 170.94 M

Supporting Canada‘s Farmers, Food Businesses, and Food Supply

$ 157.52 M

Supporting Public Health Measures in Correctional Institutions

$ 155.79 M

Support for Fish Harvesters

$ 144.82 M

Virtual Care and Mental Health Support

$ 137.32 M

Support for Local Indigenous Businesses and Economies

$ 133.00 M

Supporting and Sustaining the Public Health Agency of Canada and Health Canada‘s Pandemic Operations

$ 132.53 M

Targeted Extension of the Innovation Assistance Program

$ 127.29 M

Ensuring Access to Canada Revenue Agency Call Centres

$ 127.24 M

Support for the Canadian Red Cross

$ 99.34 M

Funding for VIA Rail Canada Inc.

$ 90.43 M

Support for Health Canada and the Public Health Agency of Canada

$ 83.74 M

Indigenous Mental Wellness Support

$ 82.43 M

Support for Food System Firms that Hire Temporary Foreign Workers

$ 74.04 M

Support Essential Air Access to Remote Communities

$ 68.58 M

Parks Canada Revenue Replacement and Rent Relief

$ 57.29 M

Consular Assistance for Canadians Abroad

$ 56.50 M

Addressing the Outbreak of COVID-19 among Temporary Foreign Workers on Farms

$ 50.61 M

Support for Women‘s Shelters and Sexual Assault Centres, including in Indigenous Communities

$ 49.96 M

Addressing Gender-Based Violence during COVID-19

$ 48.86 M

Support for Fish and Seafood Processors

$ 45.19 M

Bio-Manufacturing Capacity Expansion—National Research Council Royalmount Facility

$ 43.47 M

COVID-19 Communications and Marketing

$  43.07 M

Supporting Distress Centres, the Wellness Together Canada Portal

$  41.72 M

Emissions Reduction Fund for the Oil and Gas Sector

$  31.71 M

Support for the Broadcasting Industry

$ 31.59 M

Support for Safe Operation in the Forest Sector

$ 30.08 M

Support for Canada‘s National Museums

$ 25.70 M

Support for Veterans‘ Organizations

$ 20.00 M

New Horizons for Seniors Program Expansion

$ 19.97 M

Support for Food Inspection Services

$ 19.40 M

Support for Canada‘s National Arts Centre

$ 18.20 M

Supporting the Ongoing Delivery of Key Benefits

$ 17.80 M

Canada Emergency Student Benefit—Administration Costs

$ 17.62 M

Financial Relief for First Nations through the First Nations Finance Authority

$ 17.10 M

Women Entrepreneurship Strategy—Ecosystem Top-up

$ 15.03 M

Personal Support Worker Training and Other Measures to Address Labour Shortages in Long-Term and Home Care

$ 12.73 M

Immediate Public Health Response

$ 12.50 M

Granville Island Emergency Relief Fund

$ 10.44 M

Advertising Campaign: Government of Canada‘s COVID-19 Economic Response Plan

$ 10.00 M

Support for Main Street Businesses

$ 7.82 M

Support for the Federal Bridge Corporation Limited

$  5.76 M

Support for the National Film Board

$  4.74 M

Investments in Long-Term Care and other Supportive Care Facilities

$  4.65 M

Support for Children and Youth

$  4.20 M

Canadian Digital Service

$  3.59 M

Labour Market Impact Assessment Refund

$  2.78 M

Canada Student Loan Moratorium

$  2.49 M

Support for the National Capital Commission

$  1.94 M

Innovative Research and Support for New Testing Approaches and Technologies for COVID-19

$  1.41 M

Regional Air Transportation Initiative

$  1.10 M

Support for the Audiovisual Industry

$ 795.07 K

Supporting Court Operations and Access to Justice

$ 70.16 K

Total

$134.85 B

Detailed breakdowns of the expenditures for years 2022 through 2023 are available from the Treasury Board of Canada.

These controversial initiatives led to a substantial increase in government spending and a surge in the national debt. The federal budget deficit for the 2020–2021 fiscal year reached a historic high of over $354 billion. As a result, Canada‘s total federal debt surpassed the $1 trillion mark, which will have long-term implications for the country‘s fiscal health and future economic policies.

Canada‘s Department of Finance reported the following values for the National Debt of Canada:

March 31, 2019: Canada reported a federal national debt of $685.5 billion dollars.

March 31, 2020: Canada reported a federal national debt of $721.4 billion dollars.

March 31, 2021: Canada reported a federal national debt of $1.0487 trillion dollars.

March 31, 2022: Canada reported a federal national debt of $1.1345 trillion dollars.

It must be clearly understood that it is Canadian citizens who are responsible for this debt and that the size of this new debt will have significant impacts on Canadians for generations to come.

Witness Edward Dowd testified concerning the costs related to excess deaths in the United States, and although these deaths are not directly related to the Canadian experience, certain indications can be gleaned from the statistical cost estimates related to excess deaths reported in the 2021 to 2022 period. According to Mr. Dowd, in the United States over the period of 2021 to 2022, there were an estimated 300,000 excess deaths that he attributed to vaccine deaths and deaths due to mandates imposed. The estimated economic cost of these deaths is estimated to be on the order of $150 billion.

Witness Dr. Denis Rancourt‘s estimate of these costs for Canada is approximately 10 per cent of these figures, which would equate to around $15 billion in loss.

These estimates do not include the additional losses due to lost productivity.

Dr. Douglas Allen testified that the modelling of deaths utilized by the government to justify their actions was based on false assumptions, and the estimated number of deaths was grossly incorrect. The estimated number of deaths predicted by the government model was approximately 15 times what actually happened.

Additional costs that were not taken into account include

• lost education opportunities,

• increased deaths and reduced life expectancy due to increased unemployment,

• increased deaths due to despair,

• increased domestic violence and family breakdown,

• supply chain disruption costs and consequences, and

• direct deaths caused by lockdowns and vaccines.

Dr. Allen stated:

Lockdowns are not just an inefficient policy, they must rank as one of the greatest peacetime policy disasters of all time.

Stock Market Volatility and Investment Implications

The stock market experienced significant volatility during the pandemic, with widespread fluctuations in values across various sectors. While some companies thrived due to increased demand for certain products and services (for example, technology and e-commerce), others faced steep declines. Investors faced heightened uncertainty and risk, impacting retirement savings, investment portfolios, and overall financial stability.

The pandemic‘s financial impact also highlighted the need for diversification and resilience in investment strategies. It underscored the importance of considering factors such as industry resilience, sustainability, and adaptability when making investment decisions. The volatile market conditions prompted many individuals to reassess their financial goals and seek professional advice to navigate the uncertainty.

Some investors removed their capital from the market altogether fearing account lockouts or wholesale market devaluation.

Dr. Douglas Allen testified that there was an $80 billion drop in the stock market in Canada between March and April 2020 as a result of the government‘s actions.

Conclusion

The government response to the COVID-19 pandemic had far-reaching financial consequences for Canada, impacting various sectors of the economy and affecting the lives of individuals and

businesses across the country. The economic contraction, increased unemployment, government spending, and growing debt levels created significant challenges. Small businesses have struggled to survive, and investors have faced heightened volatility and uncertainty in the financial markets.

Addressing these financial impacts requires a multifaceted approach that involves continued government support, fiscal prudence, and a focus on economic recovery and resilience.

Balancing public health measures with targeted support for affected industries and individuals is crucial for mitigating the long-term effects of the pandemic on Canada‘s financial wellbeing. By learning from this crisis and implementing strategic policies, Canada can emerge stronger and more resilient in the post-pandemic era.

Recommendations

1. Restraints must be placed on public health officers. They must be required to immediately justify their recommendations with legitimate cost–benefit analyses, and their decisions must be subject to the authority of publicly elected officials and the transparent scrutiny of the public.

2. All scientific studies on either side of a crisis must be made available to the public so that the effect of propaganda can be minimized.

3. Public health officials should never be placed in charge of an Emergency Response. Emergency Response must remain the purview of professionals trained in medical and emergency procedures who understand how to set goals and achieve them.

4. Lockdowns and mandates must require direct legislative authority. These steps cannot be allowed to be carried out under regulations.

5. The media must be held to account for their collusion in the propaganda that caused the panic among citizens and authorities.

6. A detailed financial audit must be undertaken on each and every dollar that was spent on the pandemic. It must be determined whether any mishandling of these funds occurred.

7. Identify and prioritize essential expenditures directly related to public health and safety, such as healthcare infrastructure and support for vulnerable populations.

8. Evaluate the effectiveness and efficiency of existing programs and initiatives to ensure resources are allocated wisely, redirecting funds from less effective areas to more impactful measures.

9. Focus financial support on the most affected sectors and individuals, such as small businesses, low-income households, and those facing unemployment or reduced income due to the mandates.

10. Streamline administrative processes to reduce red tape, bureaucratic delays, and associated costs, ensuring funds are disbursed promptly to those in need.

11. Enhance transparency and accountability in spending by providing regular public reporting on the allocation and utilization of funds, enabling citizens to monitor government expenditures.

12. Invest in long-term emergency planning and preparedness measures to mitigate the impact of future pandemics or health emergencies. This may include strengthening public health infrastructure, establishing emergency funds, and enhancing the capacity for rapid response and data collection.

13. Ensure that future public health emergencies are operated by the existing Emergency Management Apparatus and that the public health authorities provide input into that apparatus but are not able to lead or control it.

14. Response to future public emergencies must be driven by and directed by local emergency planning personnel on the ground and not driven by federal government political processes.

15. Consider the potential cost-saving benefits of investing in preventive healthcare measures, public health education, and research and development in the healthcare sector.

16. Continuously monitor the effectiveness and impact of government spending on COVID-19 mandates and measures, adjusting allocations as needed based on evolving circumstances, scientific evidence, and changing priorities.

17. Engage in rigorous and public evaluation and assessment of programs and policies to identify areas of inefficiency or ineffectiveness, making data-driven decisions to optimize resource utilization.

18. Focus on measures that stimulate economic recovery and job creation, such as infrastructure investments, targeted incentives for business growth and innovation, and initiatives to promote consumer spending and tourism.

19. Balance short-term relief measures with long-term economic strategies to foster sustainable growth and resilience in the post-pandemic era.

20. Canada must adopt a Canada First policy where our national interest drives overall policy agendas. This applies to all aspects of our nation, including fiscal, financial, social and environmental policy. Global planning and response with a lack of Canadian input created the situation that we now find ourselves in.

21. Canada is a country whose economy is dependant on natural resource extraction and production. Canada must implement policies to upgrade and expand these core economic drivers so that export income can be quickly injected into the Canadian economy, addressing these historic debts caused by the government‘s actions during the pandemic.

22. Some of the damage and hardships experienced by Canadians was caused by an acute lack of independence and diversity of critical aspects of our economy. Canada must rigorously review and apply the anti-combines laws (Competition Act) to limit Canadians exposure to undue influence from the many monopolies that currently exist across critical sectors of our economy.

By implementing these recommendations, governments can exercise restraint in spending while ensuring that essential needs are addressed, support is provided to those most affected, and long-term preparedness measures are in place. It is crucial to strike a balance between fiscal responsibility and the necessary investments to protect public health, support the economy, and promote the overall wellbeing of citizens.