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New research finds MB gov proposed workshare program and $750 million in additional cuts will result in loss of labour income, tax revenue & drop in GDP of $1.2-$1.5billion - by @jwhajer @LynneFernandez #mbpoli @MGEUnion @MFLabour https://www.cbc.ca/news/canada/manitoba/manitoba-government-economy-covid-19-1.5539666
MB estimates #COVID19 will cost MB $5Billion, which "works out to approximately $3,650 per Manitoban, while all of New York state, with a current infection rate 70 times that of Manitoba, is estimating a fiscal impact of $770 US per person."
Given "questionable $5 billion estimate, actual impact of fully funding this $5 billion deficit through government borrowing would bring MB's debt:GDP ratio to 44%, still less than some other provinces had in 2017."
"two moving parts to the debt/GDP ratio: if MB spends and allows debt to increase, economy is stimulated, increasing GDP. Shoring up Manitoba's economy now will increase our capacity to weather the crisis, rescue our businesses, grow in the future and repay the debt later."
"Assuming we were to borrow $5 billion...would incur debt servicing charges of $260 million/year..the PST cut in 2019 cost us $330 million in annual revenues. Once economy recovers, can look at new taxes on high income earners, reverse tax cuts, if necessary, to manage the debt."
"Where our economy lands when we come out of the pandemic depends on him stepping up to the plate sooner rather than later... using gov borrowing for necessary expenditures rather than putting burden on the backs of workers & business & dealing the economy another blow." #mbpoli
