Question

Challenges faced by Canadians due to Covid-19 and the response of the Government to support the economy and people of Canada.

Take into account the following questions while making the presentation:

1. What is the issue?
2. What are the impacts of the issue on Canadian economy and society?
3. What action has been taken to address the issue by the Government, Individuals, and/or Groups including committees, organizations, non-profits, etc.? You should research different ways the issue has been addressed (tried to fix) and identify the different sources (groups) involved in trying to address the issue.
4. What are your personal thoughts, feelings, reactions, recommendations on the issue?  

Answer 1

Issue Involved:

Challenges faced by Canadians due to Covid-19 and the response of the Government to support the economy and people of Canada.

Impact of the Issue on Canadian Economy and society:

The Government of Canada is taking immediate, significant and decisive action through Canada’s COVID-19 Economic Response Plan to support Canadians and businesses facing hardship as a result of the global COVID-19 outbreak.

The government is working in close consultation with all impacted sectors across the economy to take action where it is required, and is prepared to take further targeted action as needed to ensure that Canada is well-positioned for a strong recovery from the impacts of COVID-19 across all sectors of the economy

Canada’s economy is in recession due to Covid-19 impact:

The Toronto-based C D Howe Institute’s Business Cycle Council made this official even as it stated that the first quarter of 2020 was historic in the sense that the country recorded its highest ever drop in GDP, at a 2.6 per cent fall. Statistics Canada has estimated that Canada’s GDP took a nine per cent hit in March alone, as the economic impact of the coronavirus crisis rattled the economy with several sectors being shut down. March also saw a 5.3 per cent drop in employment in the nation.

Emergency Fund:

Nearly seven million Canadians, approximately a fifth of the country’s population, have availed of an emergency fund established by the Government to counter the adverse economic impact of the Covid-19 pandemic. A note published by the Parliamentary Budget Office estimated that total could increase by 20 per cent, to about 8.5 million using the Canada Emergency Response Benefit, which was announced by Prime Minister Justin Trudeau and is scheduled to last four months, beginning with March.

Actions taken by Government to address this issue:

Canada has announced new financial and tax measures in response to COVID-19. In addition to extending certain tax filing and payment deadlines, Canada will provide a variety of financial measures for Canadian individuals and businesses affected by the COVID-19 outbreak.

The economic stimulus packages announced are highly focused on immediate needs and Canadian individuals. Economists anticipate additional stimulus for businesses will be released and updated as the pandemic unfolds.

On March 18, 2020 the Government announced a further CAD $82B support package as part of its COVID-19 Economic Response Plan, including $27B in emergency aid for workers and businesses and $55B in tax deferrals.

As of March 27, 2020 the measures to support individuals and businesses announced to date represented roughly $95B in direct support.

The federal government has thus far announced a stimulus package of more than $107B to help stabilize the economy and support Canadians during this difficult time. Total measures from federal funding, equivalent to more than 3.5% of Canada’s GDP, include $52B in direct support for individuals and businesses and $55B in tax deferrals.

Employment-related measures:

• Canada Emergency Wage Subsidy (CEWS) 75% subsidy
• Temporary Wage Subsidy (TWS) 10% subsidy
• Temporary Relief for Certain Pension Plan Contributions
• Canada Emergency Response Benefit (CERB)
• Canada Emergency Student Benefit (CESB)
• Employment Insurance Work Sharing Program
• Temporary income support for workers

Improved access to Employment Insurance Sickness Benefit

To assist Canadians affected by COVID-19 and quarantined, Service Canada is improving access to the Employment Insurance Sickness Benefit:

• Waiving the one-week waiting period for those individuals in imposed quarantine that claim Employment Insurance (EI) sickness benefits. This temporary measure has been in effect since March 15, 2020.
• Waiving the requirement to provide a medical certificate to access EI sickness benefits.
• Claimants who cannot complete their claim due to quarantine may apply later and have their EI claim backdated to cover the period of delay.
• Providing priority EI application processing for EI sickness claims for people under quarantine.