Higher Energy Prices and a stronger Loonie help the Canadian economy grow 0.7 percent in January 2021 – Published March 31, 2021,
The Canadian economy is clearly in deflationary mode to a point it should terrify lawmakers, however, there’s some good news, at the very least prices for things are going up? Although the headline reads that “Statistics Canada says the economy grew 0.7 percent in January” when you dive into the data of the ‘real gross domestic product’ the situation is really ugly.
In fact, if you take the time to actually read Statistics Canada as opposed to Canada’s mainstream media story, it clear states on the Stats Can the following:
Unemployment rate increases to highest level since August 2020
Unemployment rate increases to highest level since August 2020
The unemployment rate rose 0.6 percentage points to 9.4%, the highest rate since August 2020.The number of long-term unemployed (people who have been looking for work or who have been on temporary layoff for 27 weeks or more) remained at a record high (512,000).
The labour force participation rate—defined as the percentage of the population aged 15 and older who are employed or unemployed—fell 0.3 percentage points in January to 64.7%, the lowest rate since August 2020.
In January, the labour underutilization rate rose 1.2 percentage points to 18.4%.
I’m personally not a fan of people saying that the Canadian government doesn’t release data, because it does, it just that when the media reports on said data, they pick and choose which numbers will make Justin Trudeau look good. Current Prime Minister Justin Trudeau bailed out the Mainstream media and Steven Guilbeault has been working behind the scenes to have the government regulate what people see and what people read.
I personally don’t see much if any value in Canadian mainstream media, because what they’re doing is dumbing down the population. It’s unlikely anyone even cares to read the Stats Can website and would instead prefer to read the news headlines, which are basically saying “Nothing to see here folks” the Canadian economy is doing fine.
The Canadian government has even released data regarding the strangely low cases of Influenza, oddly enough we getting these new strains of COVID-19. The data is out there if you care to read it, it’s just that most people in Canada need thought leaders!
I’m only writing this because Canadians shouldn’t be blindsided when the economy goes left, because all of the warning signs are here and I’m not talking about money problems, we can print money, the problem is productivity, you make print productivity and there’s a serious price to pay for people being far less productive while their money situations on paper appear to be improving.
Usually, the result of this is either rising interest rates or Hyper-Inflation. Being that Canada has one of the world’s reserve currencies and a pretty solid banking system, it’s unclear to me which direction we’re headed towards, my assumption is that finances will remain the same while Quality of life diminishes for most Canadians.
Austerity measures are not an option, so if Canadians are going to voluntarily pay for all of this government, via carbon taxes, increase n regulations, expensive energy policies and the Government picking economic winners and losers based ideology eventually the Private Sector is going to react not benefiting from any of this is going to react, either by raising prices, by closing up shop or refusing to grow!
As an example because of prior minimum wage laws, most gas stations won’t pay an employee to pump your gas anymore. It’s those little things that add up in a newly emerging deflationary economy covered up with cheap money!
Interesting times ahead!