Canada had the worst performance per capita in the entire OECD since the Liberals took over, beating only Luxembourg. Which now theres a doctor shortage, an extreme housing shortage, food bank usage is up dramatically; all after we took on a lot of debt that we now pay interest on. Can you say the cons would have been worse than all that?
Can you explain it to me because I’d love to know more. My base assumption is if the US had a spike in food prices would they not dramatically increase interest rates, until food prices deflated?
Rising rates would then drop their current asset bubble due to a contraction in money supply. Hence it could be seen not to be as much a tax as it would be a large amount of pain for existing asset holders who hold nominally valued assets, which would mainly be the rich?
Another assumption I’d make is higher inflation would also lead to a lower unemployment and greater wage pressure, due to the phillips curve?
Its complicated; I cant really see the hope for these reasons. Canada had a housing crisis 10 years ago, prices were way too high relative to incomes. The shortage then worsened and prices ratcheted up as we increased immigration.
In 2023 we had huge asset price inflation like most places, due to QE from the Bank of Canada that was used to fund Covid stimulus, which caused asset values to skyrocket. We took in over a million people that year to sustain asset prices and keep wages depressed. This is known as the phillips curve, its generally expected wages rise after inflation due to wage pressure, as people ask for raises to deal with the rising cost of living.
https://thehub.ca/wp-content/uploads/2024/04/Fig1_AnnualPopulationGrowth_graph_v1-1170x839.jpg
Canada’s main cities are now within the top 10 most expensive cities in the world. The income required to afford to live there is above 200k, while the median wage is only 70k a year.
https://globalnews.ca/news/10572326/impossibly-unaffordable-housing-vancouver-report/
Carney promised to cap immigration at 1% population growth a year, which is 415,000 people a year. Annual deaths are at around 320,000, and births about 360,000 people, so we will grow at around 465,000 people a year. Given in 2022 we welcomed the most we have ever welcomed at 405,000, where prices were already rising dramatically, I dont see how the cost of living gets any better for young people. I actually dont see a single change to the existing Liberal plan at all, they were basically expecting that exact same number in 2022.
They supported the Liberals when they broke up union strikes, and when they did mass immigration after the cost of living exploded and we finally had wage pressure.
What is the point of the NDP at that point, just to prevent white people from speaking at rallies?