“I think it’s good because I need the money,” she said, noting that she will use it for rent and groceries. Meanwhile, father-of-four Judge Cote welcomes any kind of financial help but says the money will only take him so far amid rising costs. “It’s hard to keep the rent paid, and the food, the bills, the kids. A lot of financial problems for sure,” Cote said. The Saskatchewan government has announced that all residents who are 18 years of age or older and have filed a tax return will receive a $500 check in the mail in the fall. It’s part of the province’s “affordability” plan, announced as the government expects to finish the fiscal year with a $1 billion budget surplus thanks in large part to rising oil and potash prices. Judge Cote, a father of four, says the $500 check won’t get him very far. (Don Somers/CBC) In all, 900,000 checks will be mailed, at a cost of $450 million, according to the province. The checks are the latest effort among provinces to help people with high costs of living. In the spring, Quebec made a similar move, giving a $500 credit to adults earning less than $100,000 and offering more if re-elected this fall. Meanwhile, Alberta offers a gas and electricity rebate program.
“Big politics… terrible economy”: professor
Moshe Lander, an economics professor at Concordia University, said cash handouts don’t suppress inflation — in fact, they do the opposite by giving people more money to spend, which increases demand faster than supply. “Whether it’s a tax credit or an actual rebate check that comes in the mail, it’s inflationary and it shouldn’t be done in good financial sense,” Lander told CBC News. “It’s great politics. It’s just terrible economics.” WATCHES | The Angus Reid poll suggests most Canadians will cut back
The Angus Reid poll suggests most Canadians will cut back
A poll by the Angus Reid Institute shows that 80 per cent of Canadians are cutting back on spending as prices rise due to inflation. Lori Williams, a professor of economics, justice and politics at Mount Royal University, noted that the surplus could have gone toward health care or education, a sentiment The Saskatchewan NDP has also spoken out. Williams said providing checks undermines the government’s argument that it needs more money from Ottawa to fund health care. “Of course, Ottawa will be reluctant to hand over money,” Williams said. Saskatchewan Finance Minister Donna Harpauer said resource prices are volatile, so it would be unwise to use the surplus for operating costs in the health care system. But Lander said the volatility of resource revenue is why the government shouldn’t be handing out dollars. He said Saskatchewan should learn from Alberta’s experience 16 years ago. In 2006, then-premier Ralph Klein gave every Albertan $400. The province’s surpluses then slipped into deficit years as oil and natural gas prices fell. Lander said Saskatchewan should keep that in mind. The Saskatchewan Federation of Labour, which represents more than 100,000 workers across the province, said it wants the government to take measures that will reduce the cost of living in the long term, such as raising the minimum wage immediately.
