Question

Read the following article then provide a short summary about the article, what it is about, and how it applies to the economy and the government's budget.

Article: OTTAWA—As tens of thousands of Canadians are learning, preventing the spread of COVID-19 carries a painful side effect — the shutdown of broad swaths of the economy and the risk of long-term financial damage. And no one can be sure for how long. "Without immediate action, businesses will go bankrupt and millions of Canadian families may soon fall short of being able to meet their basic needs," Kevin Milligan, professor of economics, at the UBC Vancouver School of Economics, wrote in an online post Tuesday. "What we need is to bridge our economy to the other side of the infection when unrestrained economic activity can begin again," wrote Milligan, who is also a fellow-in-resident at the C.D. Howe Institute. The federal government is vowing to provide just such a bridge with the promise of a "significant" stimulus package to assist individuals and businesses hit hard by the impacts of COVID-19. On Tuesday, Prime Minister Justin Trudeau said the package, expected Wednesday, would focus on "protecting people's jobs and our economy." The government's priorities must be twofold, experts say, with a focus on quickly helping individuals and businesses who are already suffering financial losses. How can the government best help individuals? The government-ordered shutdown of public spaces, such as recreation centres and theatres along with restrictions on the number of patrons now allowed in bars and restaurants will hit some of the most vulnerable workers who have little financial buffer to carry them through a long period of unemployment. David MacDonald, a senior economist with the Canadian Centre for Policy Alternatives, said the federal government can make rapid changes to make employment insurance more accessible. For starters, he suggested reducing the number of working hours needed to qualify. That benchmark varies across the country, depending on local unemployment levels. He said the government should set a common level across the country, such as 360 hours. MacDonald said the government should make the payouts more generous, by raising the maximum amount that can be paid out and instituting a minimum payment of $300 a week.What about those people who don't qualify for employment insurance, even with the changes? Advocates say the government must recognize that changes to EI still won't deliver financial help to all who need it. "We've seen a lot more temporary work, gig work, people who haven't been contributing to EI," MacDonald said. Phillips advocates the creation of an emergency fund that would provide the same level of pay out under EI, an idea advanced by the centre as part of a package of measures to address the economic fallout. He also suggested doubling upcoming payments of the Canada Child Benefit, delivering some $500 more for each child, depending on their age. "It's a quick amount of money for a lot of those folks who won't be able to work because they have to care for kids," he said, noting the widespread closure of schools and daycares. Milligan advocates direct cash transfers to families to help with pressing financial woes, from child-care costs, rent or mortgage payments. "Cash fills these needs flexibly and quickly," Milligan wrote. The Bank of Canada has slashed its interest rate benchmark twice in recent weeks, a move that bank governor Stephen Poloz says will help save homeowners on their mortgages payments. But depending on the type of mortgage, those savings might not be immediately seen. Others have called on the government to delay tax payments and EI and CPP payroll deductions. The NDP has called on the government to expand paid leave for federal employees and provide fiscal supports to all workers. They want the Canada Revenue Agency to extend deadlines to file and pay taxes — a recommendation Ottawa appears ready to act on. The NDP is seeking a moratorium on evictions, foreclosures and utility shut-offs. And it says Ottawa should suspend the collection of monthly payments for Canada Student Loan program without penalty. How can Ottawa best support businesses? A disruption first felt in travel and tourism has now extended to almost every corner of the economy. Losing more than half their revenue for more than a month would put a quarter of small firms out of business, the Canadian Federation of Independent Business said Tuesday. The organization would like to see temporary relief in income, payroll and sales taxes; delayed deadlines for filing taxes and wage subsidies to keep employees on board. The Business Council of Canada is urging the federal government to look at jurisdictions such as Denmark and Germany that provide financial support to companies that keep employees on the payroll.

Answer 1

The above article show the condition of Canadian economy as a result of Covid19. It also states the trouble faced by government. The problem of Covid19 exists along with the economic slowdown. The process of shutdown adversely effect the economy. Government is providing financial help in the form of stimulus package. But as many sectors are closed like theatre so it financially effect the economy's GDP. On order to provide safety to the job, government has announced employment insurance by setting a standard of the numbers of hours required to work. But many people are not benefitted. Proposals are made to create emergency fund but due to economic slowdown, it will adversely effect the government budget. Assistance is required to those children whose parents are not working.Relief is required in case of home loan. Deadlines are required to be extended to pay taxes. But all these will definitely trouble the government as their is huge loss in travel and tourism sector. All the efforts are required to support the Canadian citizens but it will adversely effect the treasure of Canada and it will be a challenge for the government due to slow growth. But government need to support the companies and businesses so that many employees and general people will be benefitted.