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gunter: recession? canada is already living through one
canada is now suffering through its worst economy in 40...
aug 3 2024
3 minute read
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canada is now suffering through its worst economy in 40 years. the cause is largely the trudeau government’s obsession with woke causes and virtue signalling over economic policy and fiscal management.
it’s not all their fault.
for instance, they didn’t start the pandemic. and canada’s economy wasn’t the only one in the developed world to take a hit during covid.
but canada did spend more per capita on pandemic handouts than any other western country and ran up more public debt. the hangover from that is still being felt in the form of higher taxes, higher interest rates and higher inflation.
the trudeau liberals took a bad situation (the pandemic) and made it much worse and longer lasting.
their carbon tax and war on the energy sector have driven up prices, driven down investment and suppressed both economic growth and new employment.
productivity per canadian worker is down because industries are not investing in new technologies to increase the amount of product produced per hour worked. and our per capita income is actually declining (one of the few developed countries with that problem) because the trudeau government has opened our borders wide and invited in a flood of newcomers.
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canada is welcoming 1.2 or 1.3 million immigrants, refugees and foreign students a year, up nearly triple since the liberals came to power in 2015. however, as a nation, we are only building enough housing for just under 400,000 a year and creating jobs for (maybe) 500,000 a year.
a new study by vancouver’s fraser institute highlights a lot of worrying figures from canada’s economy and its public sector expenditures.
throughout the stephen harper years, even going back as far as liberal prime ministers jean chretien and paul martin, our gross domestic product, population, public sector workforce and government spending all ran pretty much in parallel.
that meant none of those elements were too wildly out of sync with the others.
gdp and population grew together with neither pulling too far ahead, nor falling too far behind. similarly, the size of the federal budget and the government workforce were never more than a few percentage points out of whack with the others.
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then along came the trudeau liberals. under the grits, our gdp has stalled. at the same time, federal spending, the number of federal employees and our population have erupted.
federal spending since 2015 has nearly doubled. the national debt has doubled. the federal workforce has grown by more than 40%. because these are mostly highly paid supervisors, executives and professionals, the federal payroll has grown by 67%.
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federal civil servants now make nearly 30% more than the average canadian; 40% is a recurring number for the liberals. not only has the number of federal workers increased by 40%, violent crime is up 40% and so are drug deaths.
groceries cost nearly 40% more than when the liberals came to office, as does fuel. and taxes now consume over 40% of ordinary canadians’ incomes.
wow, for a government that positioned itself as the champion of the middle class in 2015, the trudeau government certainly has been hard on middle-income canadians.
one of the other distressing figures from the fraser study shows that, since 1980, incomes and housing prices in the u.s. have increased by about 100%, meaning an ordinary working american can still afford an ordinary american home.
meanwhile, canadian incomes have gone up 100%, but housing prices have jumped by 300%.
much of the housing increase in canada has happened during the nine years of liberal rule and much of it is the result of the trudeau government’s open-door immigration policies, overwhelming the housing market.
this week, bank of canada governor tiff macklem said he was hopeful canada could avoid a recession. frankly, given how lousy our economy is, in general, i doubt we would notice the difference.
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