Because debt loads. Cutting taxes while increasing spending is reckless and stupid, and leads to investors fleeing Canada, leading to the current productivity crisis Canada has. Citing the BoC.
toastmeister
joined 3 months ago
Watch the video and he outlines how that's a bad faith argument. It's common parlance for increasing the money supply, its not physically printing cash.
During Covid it was actually 2% inflation only, which they ignored for an entire year. They arent political so dealing with Covid was not their purvue.
We did mass immigration to lower wage pressure and inflation as we bought half of all mortgage bonds to depress shelter inflation and encourage Canadians to take on full recourse loans to for-profit banks. The liberals are the sum of the worst parts of Cons and NDP, offering massive spending coupled with low taxes, on the worst impulse of voters who live in a fantasy where you can have both.
https://www.bankofcanada.ca/wp-content/uploads/2019/01/swp2019-6.pdf
This outlines how QE causes wealth inequality in the short term, as asset prices rise. In the long term unemployment falls, and wages rise from greater wage pressure. So according to this study the created wage pressure reverses the wealth inequality caused by QE.
My question is why we did 4% population growth via immigration and why we allowed students to work 40 hours a week to forcefully decrease wage pressure, reversing the labor shortage, entrenching the short term inequality. It seems hard to believe a progressive would do such a thing, as it appears to have greatly exacerbated wealth inequality.
The AAA credit rating includes our ability to liquidate our pension, which is not ever happening. Read the last economic statement by Freeland and it has a footnote.
Debt to GDP excludes provincial debt, which is just a technicality versus how other countries calculate it. Combined we are near 100%.
Inflation is somewhat reduced due to how we calculate it, and the fact we bought 50% of all mortgage bonds federally to depress shelter inflation.
How old was the OECD estimate, given 80% of exports are bound to the US it seems ridiculous, and they've recently brought it down as well to a third%: https://www.ainvest.com/news/oecd-cuts-canada-s-2025-and-2026-growth-forecasts-to-0-7-from-2-250310000435138d2a871176/
The recession was avoided due to mass immigration. Per capita we lost to inflation since Trudeau took over.
Piss off with that MAGA red herring nonsense, you ate up the kool-aid around Trump, but Canada has had negative per capita GDP growth since Trudeau was elected. The Liberals have shit the bed on every metric, and Carney is essentially running with the same plan and the same cabinet.
Reading his book its quite clear what he thinks of energy production, whereas Canada is a petro state, in 2016 when oil fell our stock market fell 20%. We have had terrible performance and terrible wage gains. Carney also wants to replace the carbon tax with carbon border adjustments, tariffs on foreign emitters, which is closer to Trumps plan.
The only recent reprieve in our economy since the Liberals were elected was when we inflated GDP using mass immigration to depress salaries, as the BoC was buying all the Covid stimulus, and they forced unions back to work. We essentially debased our standard of living to raise stock valuations, and were buying half of all issued mortgage bonds to inflate real estate valuations, prior to that Canada has had abysmal performance and our alarm level productivity investment and capital swallowing is clear.
GDP growth is also very high, and our productivity is increasing with Cloud, AI, and automation. So we will have more people to deal with it in the future at least.
Also the fact its usually from government stimulus, and the CPI dramatically undercounts real inflation. Rent up 50%, food and restaurants up 50%, yet somehow inflation was only 20% the last 5 years according to Stats Canada.
Goods prices rose, our government does mass immigration to keep salaries depressed; this turns into economic growth as more people are employed for less money and we're all individually poorer, as capital shallowing is occurring due to central planning.
Carney will announce an LNG pipeline through Quebec soon and it will all be clear why they did it.
Its basic supply and demand. If you don't have supply and you increase demand then you get shortage, just chart immigration to rents and you'll see they are directly correlated.
https://i.redd.it/yc1oaqonymec1.jpeg
You've been gaslit by Liberals for too long, even the Bank of Canada said they pushed up home values. We also have depressed wages due to capital swallowing due to the speed with which we did it.
https://publications.gc.ca/collections/collection_2023/banque-bank-canada/FB3-7-2023-17-eng.pdf
https://www.cbc.ca/news/politics/immigration-bank-of-canada-housing-1.7093426
It also entrenched asset inequality from QE, as this BoC publication outlines. Usually the labor pressure from the low unemployment would wipe out the wealth inequality of rising asset prices due to QE.
https://www.bankofcanada.ca/wp-content/uploads/2019/01/swp2019-6.pdf
Its sprawled zoning and low density, large greenbelt, huge developer fees that increased thousands of percent, and bureaucracy that prevents new development. None of that is capitalism, its central planning.
Saying im blaming immigrants is idiotic, I'm against mass immigration well beyond housing completions. But I'm assuming your a NIMBY home owner and aren't arguing in good faith.