Canada’s economy gains 9,300 mainly Service Sector and Public Sector Jobs in 2018 – January 4, 2018,
A few things Canadians should understand when reading the post below, #1 the main reason why wage growth in Canada has been stagnant is that most of the jobs being created in Canada are service sector jobs, it should also be noted that Justin Trudeau’s cabinet engaged in deficit spending which of course led to the creation of part-time Public Sector jobs. Public Sector jobs for those who don’t know what they are are jobs created by the Government, the government makes its money by taxing the profits of the Private Sector.
Public Servants are also taxed, however, their incomes are derived from the profits of the Private Sector. It should be noted that Crown Corporations, are also closely tied to the Public Sector and Crown Corporations enjoy economic monopolies which equate to there being no competitor to offer competitive prices which of course often leads to a less competition, which ultimately leads to wage stagnation.
How Crown Corporations in Canada Destroy the Canadian Economy
As an example Canada Post is a crown corporation, therefore it has no competitor and can operate freely without worry of a competitor wiping them out. The CBC another Crown Corporation has no competitor, therefore there’s no incentive for it to offer quality broadcasting, in Ontario we have a Provincial Crown Corporation known as LCBO that retails and distributes alcoholic beverages throughout the province it has no competitor so Ontarians tend to spend more on alcoholic beverages than they otherwise would have, had LCBO not enjoyed this monopoly. CMHC (Canada Mortgage and Housing Corporation) a crown corporation insures residential and commercial mortgages and because of this insurance property values all over Canada are inflated.
Via CMHC many Canadians were able to put as little down as 5% on their mortgages, so those that got into this scheme early benefited, while those who are late to the party will have to suffer by paying higher mortgage prices. it should be noted that the initial purpose of CMHC was to help low-income Canadians afford a home, however, since CMHC was created the housing and rental prices have skyrocketed in areas where Canadians can find employment, which of course makes this wage stagnation problem even worse.
These government entities create stagnant wage growth because there exists no competition for them, adding fuel to the fire are the Public Servants many of whom exist as Price controllers. If these job numbers were based on manufacturing or the private sector being productive enough to create these jobs numbers, the Bank of Canada would have to raise interest rates, which would, of course, equate to Canadians who aren’t in debt, who usually are the young Canadians just getting out of High School or College, just beginning life having a lower cost of living and the potential of receiving higher wages because there wouldn’t be all of these wage suppressing regulations forcing the young into debt.
Trudeau made an announcement that he’ll be bailing the Canadian mainstream media and you can already see the damage it’s causing. Below you can read vague articles about how the Canadian economy added 9,300 jobs while at the same time the Bank of Canada thinks it’s too risky to raise interest rates? If people follow what’s going on in America, to the dismay of the current president-elect Donald Trump, the U.S federal reserve was forced to raise interest rates based on the job numbers.
It should be noted that Donald Trump was the guy that hired the Federal Reserve chairmen, that he believes is screwing him over. Job Growth usually means a growing economy, I apologize, legitimate job growth usually means a growing economy. Canada, we better wake up soon!
Interesting times ahead