We did QE during Covid, which as per the Phillips curve it increased wages due to a labor shortage, and we then did mass immigration to depress wages.
If you want to look at the Phillips curve, QE’s effect on inflation, and a chart of Canada’s population growth.
What’s been accomplished that isn’t dwarfed by housing and rents doubling?
I’m happy for you if you happen to own real estate, but people in my family are renters, and have had their wages diminished by the 4% population growth.
I know why we did it, to prop up GDP, I just don’t think you should be distorting the market like that after QE raises asset values. Entrenching wealth inequality is bad for the poor, and people living in rest stops is heartbreaking.
What programs have even been funded, as far as I’m aware we pulled consumption forward, and all this progress only landlords feel is funded with future austerity; as we buy 50% of all mortgage bonds to pump their real estate holdings using borrowed money.
He’s the patriot that supported Canada doing mass immigration to reduce Canadian wages, to protect asset values against a “wage price spiral”, where workers finally had actual bargaining power for wages. The Liberals have hollowed out the middle class the last decade, while never funding a single program, so we owe a huge debt as per capita GDP fell.
Now Carney wants to withdraw the capital gains tax increase before it has even been implemented, and to tariff foreign emitters, a tax on ourselves in order to gift it to Brookfield’s ESG department for carbon capture. Coincidentally where he just used to work.
I’d like if we moved in the reverse direction, but I think too many people are benefiting from real estate to do anything about it. We just gifted 300m to Bangladesh, maybe its time we stopped destroying poor Canadians by removing GST on housing or building mass transit?
https://www.bankofcanada.ca/wp-content/uploads/2023/12/remarks-2023-12-07.pdf
The Bank of Canada says they do drive up home prices, which has an effect on inflation.
The “labor shortage” is the Phillips curve, caused by QE, which caused the 8% inflation we experienced after Covid. Its not a real shortage, and the increased economic activity is temporary, as the BoC then raised rates to cool the overheated economy.
So you’re idea that you’re simply filling up job vacancies because our economy is strong is wrong, what youre actually doing is preventing wage pressures from correcting the wealth inequality the Bank of Canada’s QE caused. This is straight from a BoC publication as well that explains how wage pressure are a natural equalization after a bout of inflation, reversing this via mass immigration is bad for non-asset holders, which is why wealth inequality between renters and home owners increased so dramatically.
But thats easily seen by looking at the growing food bank usage, growing homelessness, growing wealth inequality, and reports like this:
https://nationalpost.com/opinion/secret-rcmp-report-warns-canadians-may-revolt-once-they-realize-how-broke-they-are
If you were around in the 70s and 80s you’d likely be one of the people blaming unions for “causing inflation”, and telling them they needed to accept lower wages.