1026 replies to this topic

[dasmo]

Their target is small business. That’s what they shut down for almost two years. Not Loblaws. They disrupted global supply chains, printed trillions for nothing productive, loaned out money, gave out money, forced small businesses to close, limit sales, reduce productivity. Now they raise rates, make war, limit energy distribution, and increase taxes. Then they blame inflation on us trying to recover.

[spanky123]

Can anyone that is better at economic theory than I explain the "root cause" for this inflation?

 

If wages are not rising too fast, is productivity down?

 

And if high interest rates are the solution to inflation, why did 10 years of low interest rates have low inflation until 2022?

 

Governments around the world printed trillions of dollars. The vast increase in money supply goosed demand which then drove prices up. Same thing happened in 2008 although inflation seemed to be constrained mostly to asset classes likes stocks, luxury items. commodities and houses, probably because most of the printed money found its way to bankers and not the masses.

[spanky123]

The obvious first sector that will feel the erosion of discretionary spending will be restaurants and luxury services, like spas and entertainment.

 

In general I agree although Victoria's retiree population will continue to drive some demand as high interest rates have boosted their savings portfolios.

[spanky123]

Loblaws just posted a $529M profit for the last quarter from across its diverse portfolio of companies.

 

What I really dislike about Singh is that he tries to build support by bashing others with his main target being business. Of course what he doesn't tell you is that his own pension plan likely contains investments in the very companies he wants you to hate.

[Nparker]

Hypocrisy from a political figure? I'm shocked!! 

[Victoria Watcher]

What I really dislike about Singh is that he tries to build support by bashing others with his main target being business. Of course what he doesn't tell you is that his own pension plan likely contains investments in the very companies he wants you to hate.

His salary - government salary and cost - is tougher on us than 99 bananas.

[Matt R.]

Loblaws just posted a $529M profit for the last quarter from across its diverse portfolio of companies.

That’s not a lot. Split out the grocery business, and it’s less profit per customer over one quarter than what an average persons tips at restaurants, bars and coffee shops over the same period. Way, waaaaaay less.

So while we begrudge Loblaws (Jagmeet Singh’s favourite target are these large corporations), we don’t consider how small of an individual profit is made from each customer over three months.

I expect these stores mark up as a percentage based on cost, so when input costs go up, profit goes up even though the percentage stays the same, and we all know volume is up.

What a time to be alive! We got into grocery retail at the right time I think.

Edited by Matt R., 23 February 2023 - 01:06 PM.

[Victoria Watcher]

Loblaws just posted a $529M profit for the last quarter from across its diverse portfolio of companies.

That’s not a lot. Split out the grocery business, and it’s less profit per customer over one quarter than what an average persons tips at restaurants, bars and coffee shops over the same period. Way, waaaaaay less.

So while we begrudge Loblaws (Jagmeet Singh’s favourite target are these large corporations), we don’t consider how small of an individual profit is made from each customer over three months.

 

Exactly.

 

Loblaws sales were $350 per Canadian.  Profit of $13 per Canadian.

 

 

 

The company says it earned a profit available to common shareholders of $529 million. Its fourth-quarter revenue rose about 10 per cent to $14.01 billion from the same period last year, topping estimates of $13.75 billion.

 

https://www.cbc.ca/n...-2022-1.6757480

 

The Company’s Discount stores outperformed, benefiting from an increased consumer focus on price. Market stores extended strong performance relative to peers with impactful promotional strategies. Gross margins were slightly lower, largely related to the no name® price freeze and increased commitment to promotional activity, partially offset by continued strength in higher margin front-store sales in the Drug business. 

 

https://www.loblaw.c...31-2022-results

Edited by Victoria Watcher, 23 February 2023 - 01:59 PM.

[spanky123]

So about 40% of wage subsidy payments went to insolvent firms or those with tax debts (and which of likely failed anyways). Another yet unknown % went to firms that falsely declared their revenues had dropped.

In essence then businesses that were actually successful are now going to have to bail out tens of billions of fraudulently obtained dollars.

From G&M

Ottawa paid out more than $37-billion in pandemic wage subsidies to businesses with tax debts

[Victoria Watcher]

So about 40% of wage subsidy payments went to insolvent firms or those with tax debts (and which of likely failed anyways). Another yet unknown % went to firms that falsely declared their revenues had dropped.

In essence then businesses that were actually successful are now going to have to bail out tens of billions of fraudulently obtained dollars.

From G&M

Ottawa paid out more than $37-billion in pandemic wage subsidies to businesses with tax debts

 

 

 

The federal government paid $37.7-billion in pandemic wage subsidies to businesses with tax debts, and $1-billion to insolvent companies, raising new concerns about the level of screening Ottawa applied to its most generous COVID-19 support program.

 

The $37.7-billion represents over 37 per cent of the total cost of the Canada Emergency Wage Subsidy (CEWS), which accounted for $100.7-billion of the $210.7-billion spent on pandemic benefits to individuals and businesses.

 

The CEWS was paid directly to employers experiencing significant revenue declines during the pandemic, as a way of helping them keep employees on payroll. The fact that billions went to companies with tax or insolvency problems exposes issues with the program’s design, given that many of the businesses were already struggling for reasons unrelated to COVID-19 and were not likely able to maintain their staffing levels.

 

The new details on CEWS spending are revealed in a Canada Revenue Agency document provided to the House of Commons public accounts committee, which is reviewing Auditor-General Karen Hogan’s December audit report into pandemic benefits.

 

_______________

 

The new CRA information reveals that 2,638 businesses that received CEWS payments are now insolvent, a category that includes companies in bankruptcy, receivership or involved in proposals to repay amounts owed.

 

The 2021 Globe review of data available at the time also found that 388 publicly traded companies (or their wholly owned subsidiaries) had received more than $3.6-billion in CEWS payments, and in some cases used the government subsidies to pad their bottom lines. The Globe noted at the time that there were limitations and omissions in the available data. The new CRA figures show the final amounts were much higher: 2,280 publicly traded companies had CEWS claims approved, for a total of $9.9-billion.

 

https://www.theglobe...ing-government/

[Nparker]

Q: Who would ever have imagined that a Justin Trudeau-Liberal scheme could have been so fundamentally flawed?

A: Anyone with an IQ above room temperature (Celsius).

[Victoria Watcher]

A: Anyone with an IQ above room temperature (Celsius).

 

Do you have to specify the measurement scale?

[Matt R.]

^^ What are you talking about, CEWS, CEBA, and the like were awesome! 

[Nparker]

Do you have to specify the measurement scale?

I didn't want to suggest that anyone with an IQ above 21 would believe the JT Liberals.

[LJ]

In the US, I just bought a half gallon of milk for $1.27.

Today, a gallon of milk was on sale for $1.59

[Mike K.]

5.69 at shoppers is what I saw. They try to be ultra competitive with milk.

[Matt R.]

Loss leader. Zellers was the same.

[Stephen James]

It’s become like a game now. What a time to be alive.

One thing that causes inflation, among others, is the expectation of inflation... it becomes a spiral.

 

"They" (whoever that might be) would prefer less inflation of wages, rents, food, and all things.

[Stephen James]

5.69 at shoppers is what I saw. They try to be ultra competitive with milk.

Supply side management.

We have a lot of that in Canada, so when people are angry at Loblaw's, the supply-side management cabals are killing themselves laughing because we're looking the wrong way...

[Matt R.]

There is a lot of gouging going on today for sure. People are cashing in on the hype surrounding inflation because hey, it’s all over the news, so who’s going to complain?