Justin Trudeau’s FEDERAL Liberal Party $10 a Day Child Care for Families funding model creating unsustainable levels of debt for a Toronto daycare – January 18, 2024
I’ve stated this in prior posts, and I’ll state it again: Canadian Leftists in Politics likely have the LOWEST financial IQs anywhere in the developed world. It’s either they’re stupid, or they’re intentionally trying to destroy the Canadian economy, and I’m calling them stupid primarily because I’m naive, and I don’t want to imagine that Justin Trudeau is INTENTIONALLY trying to destroy Canada.
One of the reasons Canadian leftists are so ridiculously stupid not only has to do with many of them being DECEDENTS and, therefore, FINANCIAL beneficiaries of prior generations, but I’d argue it also has to do with Canada’s proximity to the United States.
Having the United States as our largest trading partner allows the Federation of Canada to get away with ECONOMICALLY stupid FISCAL ideas that would work nowhere else in the DEVELOPED world.
One of the problems Canada has DOMESTICALLY, in our LOCAL economies, is PRICE CONTROLS. In cities like Toronto, for example, there are regulations, price controls, restrictions, and monopolistic labor unions on all sorts of things.
Now, even if you’re a LEFTIST in Federal politics, you’d comprehend that throwing money at municipal problems will do nothing more than make the problem worse. Municipal problems are not FEDERAL jurisdiction for a reason, it’s almost like modern politicians, imagine that they’re smarter than the people who created the FOUNDATIONS of country.
I like to write about the damage CMHC has caused to the Canadian economy.
Canada Mortgage and Housing Corporation(CMHC) is Canada’s federal crown corporation responsible for administering the National Housing Act, with the mandate to improve housing by living conditions in the country.
Now, I’ve argued that CMHC should be DISSOLVED, not reformed; why? Because CMHC is basically trying to make up for the VOTING patterns of municipal voters, and by CMHC THROWING money at municipal created problems, it’s not only assisted in making housing more expensive, it’s also managed in making RENTING and leasing COMMERCIAL space more expensive.
Now, one of the problems with FIAT money is that governments can opt NOT to live within their means, and one of the problems with having one of the world reserve FIAT currencies is that NON-Canadians or foreign countries can make up for our DOMESTIC shortfalls, by allowing our currency INTERNATIONALLY to be priced at “market” level that does not tell the whole story of Canada’s FISCAL situation.
One of the main reasons consumer prices have been skyrocketing in Canada has little to nothing to do with the value of the Canadian dollar on the INTERNATIONAL stage. I’m obviously more Conservative politically than Liberal. However, I will proudly say that I like Tiff Macklem (Appointed under Leftist Justin Trudeau) far more than Stephen Poloz (appointed by Conservative Stephen Harper).
Stateside, I like Jerome Powell far more than former President Donald Trump because, FEDERALLY, the central bankers are doing better jobs than they’re being given credit for. The problem currently is the VOTERS and the Prime Minister.
Voters don’t want to take any responsibility for hiring these local politicians, who are the real troublemakers in Canada. When the LOCAL government creates monopolies and price controls, there are consequences.
Price controls, like rent controls, for example, equate to GOVERNMENT RESTRICTIONS on profitability, now if my profits are capped in any capacity, as a business owner, I will change my behavior, so instead of renting out the basement of my house, I’ll d to buy and hold for price appreciation and HOPEFULLY ell my house at a massive profit, to someone who will repeat the same process as myself.
Now, take this to the COMMERCIAL real estate market, and this is where things get more interesting because now that fewer people are willing to rent out their properties, there is then a demand for local housing, and because CMHC and the federal government are involved in the LOCAL housing market, CONDO developers now see a much easier way to have their CONDO developments completed.
I don’t know about now, but years back, there were WAITING lists for people to buy condos, but a lot of these buyers were buying these condos with the INTENTION to flip these properties and rent them to HIGH NET WORTH individuals, many of whom were usually international students.
So LOCALLY in Toronto, the VOTERS were likely unintentionally voting to price themselves out of their local housing and rental markets. Now, had the federal government(via CMHC) not gotten involved, the problem wouldn’t have been as bad as it is.
You have to remember that CMHC threw money at the problem; you could literally qualify for an overvalued condo because you could put less than 20% down, and of course, we have foreign borrowers. Because of the strength of the Canadian dollar internationally, you have a lot of purchases of Canadian dollars to preserve purchasing power abroad in Canada, and because these foreigners have a lower COST of living in their countries, saving Canadian dollars is easier and more beneficial for them, both locally and in Canada, and if you have a Canadian housing market backed by the Canadian taxpayer, the Canadian housing market becomes a great place to store WEALTH.
I could go on and on about this, but to stay on point in regards to the $10 a Day Child Care the COSTS have exploded, because whenever the FEDERAL government throws money at an existing problem, the problem doesn’t go away it expands, all the disastrous problems that exist in local governments, only got worse, because the government threw money at the problem, so for example instead of something costing $10 day, it costs $20 a day, because the underline LOCAL government problem was not solved, it was merely FINANCED.
Interesting times ahead!