The Liberal Government’s Record on Housing is Horrendous: Liberals look at buying distressed buildings for affordable housing? – Jun 14, 2020,
In Singapore, which by the way has economically has one of the freest markets on earth, the government plays a very important role in housing, but you see in Singapore, their Government economically is competent, however, let’s not forget that Singapore’s democracy is viewed as a benevolent dictatorship.
In Singapore being that its small island leadership plays a very important role in how the Island is managed and therefore the people of their Government have to think and prepare ahead, being that Singapore is a benevolent dictatorship, the cost of maintenance is understood by the government people in power.
In Canada, a change of leadership could change all the fundamentals of Government programs. When it comes to housing, the problem is never finding or building the government homes, the problem is maintenance, you see when people don’t own or have any pride in ownership, they’ll behave differently, unlike Singapore there is no heavy had of Government in housing, there is no, concept by many people who live in Government housing that it’s in their collective best interests to maintain the building and making matters worst, the mark up for maintenance in government housing is extremely problematic.
Public and even private-sector unions will form wherever Government resources are concentrated, this drives up prices and creates a different culture of workers. This is the main reason why government housing is avoided in Canada.
Of course, the socialists in Canada would love to have massive government housing programs they’d be voted in for life, the problem is we have a market fundamental in our housing market and the public sector union culture in Canada is very strong.
In 2019, Canada Posts Union went on Strike during Christmas, Provincially, the Union representing Ontario Public School teachers went on strike, on the municipal level in Toronto, Waste-management recently had threatened to go on strike, now I remind you that all of these government workers get paid an above-market wage and enjoy benefits that private-sector workers can only imagine of having.
It’s only natural that humans will want better for themselves and if people are dumb enough to allow Government to basically nationalize industries that the private sector is capable of solving, well then problems which otherwise don’t exist will exist.
Labor Unions and government workforces drive up the costs for everything, most government people aren’t in business, so as an example if a Government hired engineer tells the government person that they’re going to install the best most hi-tech elevators that money can buy in the government housing building, instead of considering the maintenance costs for the high tech elevator, the moronic socialist politician will most likely say to the engineer salesperson, sign up me up! The voters deserve the best elevator money can buy!
Then when plumbing and electrical problems start arising the cost to fix these problems skyrockets and usually requires specialized help. First of all, if values of homes are declining(which they’re not), this should equate to more people having the ability to afford a home, but you see the real problem in all of this is the government is fighting deflation.
It’s the government’s worst fear for voters to see rock bottom prices for inflated assets, rock bottom prices is almost like an awakening for most people because they didn’t believe that liquidation or fire sales could really happen in this country.
The Canadian government could even create laws in deflationary housing environments that prevent foreigners from scooping up all the properties, but again, Government doesn’t want the people to see a DOMESTIC free market in action, because what will happen is the people once they see who the real culprit is with high housing prices will turn on the central bank and the government.
Rental prices are inflated all over Canada, primarily because the Liberals allowed CMHC to offer Mortgage insurance, Government Mortgage insurance, and Central Banks working in conjunction with each other to keep the housing prices propped up has created a plethora of housing problems.
So-called real estate investors who shouldn’t be in the housing market because they’re broke and horrible business people have both the CMHC and the BoC working in conjunction to prop them up, adding to the stupidity in all of this is the role of the Federal, Provincial and Municipal governments who help to subsidize this madness.
There is little to no housing MARKET in Canada, it’s almost guaranteed housing prices are going up, which is why the article below was framed the way it was, the article below is framed to bail out existing bad real estate investments using the Federal Government.
In the article below, the writer makes little to no mention of the inflated price the Government would pay to buy those overvalued properties. The governments money comes for the taxpayers and again this money would be used to pick winners and losers in the housing market.
In the private sector, housing would be affordable, would there still be homeless people? Probably yes, because some people simply don’t pay their rent on time and I know from working with homeless people, that many homeless people simply do not want to work a 9-5 job.
This is real life, it’s the truth of the world, there are a lot of people who do not like working, and if given the power they will vote for a leader who will help them not to work. Hitler got voted in because he gave the Geran people in that era a quick fix to their economic powers. It’s unlikely the German people in that era were even racist, but many of them did not want to work or function in the free market.
It’s the reality of the situation, some humans don’t like to work or I should say some humans don’t want work in jobs they feel are beneath them, so they live on the streets or look for creative ways to survive.
But you see when the government blends hardworking poor people and lazy poor together and labels them as the same type of poor person, this is where the housing problems are created because some people do not want to work and if their government allows them not to work and get free housing, they’re in heaven and why shouldn’t they be?
Your standard of living being on Welfare in Canada is better than being a middle-income employee, working 40 hours a week in Mexico! I’ve seen people in Metro housing that have a Mercedes Benz automobile. The market rent in metro housing in Ontario is way better than any price you’ll find in the Private Sector.
If the politician in power wants to get re-elected they’d also better make sure the metro housing rents remain low! When government housing prices are artificially low and the REAL maintenance costs to maintain the government building are high, it leads to a plethora of problems for the government that can never be fixed.
Maintenance problems are why there isn’t more government housing right now, we have a Democracy, and there’s a chance that a stupid NDP or Liberal politician might win an election. B.C by far should be Canada’s richest province, British Columbia has everything they’re bordered with America and can conveniently do trade with China, but the NDP found a way to destroy their economy with a big ole Government.
Government people in a democracy can destroy a well-intentioned government program, within a few months of taking office, Trudeau has done a whole lot of damage to the Canadian economy, but in a democracy, Trudeau’s successor might be the individual who gets the blame when it all crashes. Unless you’re in the know economically it’s easy to point blame at the opposition party. But the truth is the Government should not be as involved in housing as it is now!
Interesting times ahead!