Dear Clients and Friends,
The government has introduced many support programs to help businesses and individuals who have been hurt by Covid-19.
These programs will balloon government deficits to unprecedented levels that would’ve been unthinkable just two months ago. Programs include wage and rent subsidies for business owners, interest-free loans, support for students, and those left unemployed.
A common question I’m now receiving is how will we pay for all this government spending?
It’s a question that could affect us all for generations potentially resulting in, at least in some degree, higher taxes and reduced government benefits. The Collaborative Fund’s recent blog Who Pays for This? looks at how the huge deficits produced by WWII were paid off. Its conclusion that “they weren’t” is an interesting and relevant read.
Hope you enjoy and stay safe.
Warm wishes always,
Paul