Is the Trudeau governments immigration policy an effort to hide economic decline?
Real GDP rising while percapita real GDP is falling
Despite a horrendous shortage of housing (and what is available priced out of reach for most Canadians), Trudeau Liberals keep the borders open and bring in hundreds of thousands of new Canadians every year. Over the long term Canada will benefit from a higher population and demographic gaps in the labor force will be mitigated or filled. But why is the federal government getting the cart before the horse by bringing in more people than our housing infrastructure can support?
Politics. Politics. Politics.
Most Liberal voters can’t read below a headline. That is why they buy into the specious “climate change” rhetoric of the Liberal government which presumes the impossible outcome that higher CO2 levels in atmosphere can cause “global warming” now re-labeled “climate change”. Similarly, the Liberal propaganda machine (aka mainstream media like CBC, Toronto Star and CTV) can point to higher real gross domestic product (GDP) as evidence the Liberal economic policies are working. Working to make you poorer, however, is what they are accomplishing.
Here are the hard data when you look under the hood of this rusty car.
Higher population has spurred high real GDP as more people enter the workforce and more people buy groceries and essential goods. But for the past year, real GDP per capita has fallen. In parallel, Trudeau loves to point to the 2.8% inflation print form June as evidence inflation is abating. Of course, that drop reflected little more than a 22% decline in energy prices as oil & gas prices fell worldwide. Since June, sadly for Trudeau, oil and gas prices have risen over 18% and the next few months’ inflation prints will go back to reporting the 30% rise in mortgage costs and high single digit rises in the costs of groceries without the offset of lower energy costs. Oil prices have had the highest monthly gain in over a year.
Every Canadian knows it costs more to buy food today, and the Liberals and NDP want to blame “corporate greed” despite the reality that grocery chains profits margins have not risen by enough to matter (less than 1 percentage point) and grocery store prices are up 7-10% depending on the item. The only “greed” in evidence is the greedy way Trudeau Liberals rake in carbon taxes and give themselves large raises in their salaries and over time their indexed pensions. The “greed” in Canada is resident in the House of Commons and the Bank of Canada which gave its staff large bonuses recently.
For the rest of us, it is an incessant parade of DEI, ESG, correct pronouns and a pile of divisive Liberal crap that matters little to most people who just want to be able to look after their children, pay their bills and be left alone by government. That won’t happen until we run Trudeau and his narcissistic elites out of office and elect a party and a leader who thinks Canadians will benefit from higher levels of personal freedom, less censorship of speech, greater economic opportunity and smaller government. That includes me.
We have a major productivity problem which needs risk capital invested to fix . But investors lack confidence in the Canadian ineptocracy.
As you say Michael, Canadians also don’t invest effort into learning what is happening to them . So it will be up to kitchen table issues to cause voters to throw the bums out .
Trudeau economics is based entirely on irresponsibly high immigration and excessive government spending. Both will provide an impressive cherry picked national GDP figure, but behind the headline number is a nation with a diminishing living standard and many families and individuals struggling to pay for the basic necessities.