The Canadian Federation of Independent Business, Canada’s largest business organization, recently reported up to 181,000 small businesses may close, become solvent or go bankrupt in 2021. Add to this another 58,000 businesses that closed their doors in 2020. In Alberta, the expected numbers are even higher, with 22 per cent of businesses considering bankruptcy or winding down operations, putting at the high range 39,900 businesses in danger of closing, meaning up to 724,000 jobs lost within the province.
The Financial Post recently calculated the federal deficit for 2020 at $346 billion or 16 per cent of GDP. They estimated the total GDP of Canada at $2.16 trillion. In 2018, local government, cities and municipalities spent $178 billion, and the provinces $354 billion. The federal government is estimated to have spent $621 billion with $346 billion being finances by debt in 2020. A total of $1.15 trillion in government spending means that government accounted for 55 per cent of our total GDP, meaning the real economic collapse for Canada was in the range of negative 21 per cent.
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