Officials of Canada’s Finance Minister Bill Morneau Have Open discussions about Pushing For More Price Controls in Canada – March 8, 2020,
If you read the article below, titled “Child care, education, housing at heart of affordability fears, Morneau told” what should alarm you most is the how their arguments are being framed, they’re claiming that Canadian wages are keeping up with inflation while at the same time making the claim that the Government should institute price controls where they’re able to.
It should be noted that the Canadian economy if left alone by the Government and special interest groups is by far the most prosperous nation on the earth, the main reason for the most of the poverty in Canada are the Price controls and the bloated public sectors which are causing all forms of financial hardships in Canada.
Justin Trudeau didn’t have to deficit spend. Government workers don’t work for free and Government workers, which also include Federal and Provincial Crown Corporations often not only have employees who get paid an above-market wage, by these same employees are often unionized and have great pensions, they otherwise wouldn’t get if their service was based on market fundamentals, what this means is that more Canadians are in financial hardships because they’re paying an above-market price for public sector workers!
I remind the reader that the inflated price of housing, Child care, and education are all derived from the CMHC, the BoC and the often unionized Public Education boards. Even if you’re a fan of the Canada Mortgage and Housing Corporation, they’re a contributor to the inflated real estate market which obviously affects the rental markets.
The Bank of Canada openly admits to setting interested rates to appease particular segments of the Canadian economy, provincially administer public school teachers are unionized and the job of a union is not to look out for the best interests of the customers that being the students, the labour unions job is to look out for the best interests of the teachers, so obviously education costs are going to go up, being that there’s no competitive measuring stick for the public education school systems in Canada to compare with.
One f the reasons Public School teachers in America are at war with Charter Schools is because Charter Schools do more and do a better job with less money. When you strip entire markets of competitive forces, prices to deliver those services balloon. Canada’s Central Bank has no competition, The only competition CMHC has is rental controls, Genworth poses no threat to CMHC and the reason child care is so expensive is that the provinces and territories are responsible for most aspects of child care in Canada.
This responsibility isn’t a regulation on the private sector, it’s a responsibility the government has taken on and this law combined with the regulatory environment in Canada creates an atmosphere in which the private sector is only willing to take on the task at premium price. Now, to compound this disaster, because of artificially low-interest rates which are making rental prices more expensive, Canadians can’t take a break from work without going bankrupt.
You see when the cost of living is down, Canadians are better able to SAVE money and possibly even leave their excess money in the bank to collect interest, money with interest equates to people using the interest they get from their money to pay for things at a discounted rate! Now, because Canada’s central bank is siding with the ever-growing Canadian public sector, savings rates are being replaced with Government solutions, the point I’m trying to make is that wages aren’t going up if you include the cost of living.
If you include the cost of living, while the world is getting more technologically advance which should be driving the cost of living down, the Canadian government is finding more and more ways to make the cost of living go up! This is called artificial inflation and it’s reaching the point in Canada where Government officials are openly talking bout price Controls!
Although I’ve heard people say that Canada is ending up like Japan, I’d argue that Canada is beginning to look like Japan-Argentina hybrid! If you read the article below and don’t see the disastrous consequences of what they’re trying to implement, well all I can say is you’ve been warned! Price Controls, blatant price controls are Communism and that’s a terrible economic indicator for the Canadian economy in the future.
Child care, education, housing at heart of affordability fears, Morneau told | NationalPost.com
“In that sense, affordability isn’t something the market can help with. Instead of getting government out of the way, we need to get it in the way of rising costs for Canadians,” said David Macdonald, senior economist with the Canadian Centre for Policy Alternatives, who studies the cost of child care in Canada.
Interesting times ahead!