Ontario PUBLIC education workers Go On Strike Because Justin Trudeau’s War on Fossil Fuels Is Causing Consumer Price Inflation, The Damaging Affects of Federal Politics on Canadian Provinces (Price Controls) – November 6, 2022,
I’ve written a bunch about AUSTERITY measures on this blog, in particular because I like to remind people WHY I’m betting on the Canadian dollar being DEBASED. The purchasing power of the Canadian dollar, in my opinion, is headed for MASSIVE debasement, at least DOMESTICALLY. I can’t realistically predict the value of the Canadian dollar on the Forex markets, I can make guesses, but I can’t know for sure.
a few months or maybe a year ago, I thought it would cost a U.S dollar hoarder $0.60 to purchase $1 Canadian dollar; that prediction hasn’t happened yet, but the numbers on my end suggest that unless Canada imposes some austerity, that will be inevitable at some point. Canada has some serious PRICE CONTROL problems to deal with, and Ontario, in particular, has a lot of PRICE CONTROL mechanisms already in place; it’s one of the main reasons the Thousands of CUPE members hit picket lines Friday, November 1st, 2022.
CUPE is an acronym for the Canadian Union of Public Employees in Ontario; they’re apparently 55,000 strong. The average ANNUAL salary in Ontario, based on my research, ranges from $42,900-$67,788, depending on who is calculating the data. CUPE’s workers, on average, make $39,000 a year, and the union has said they are generally the lowest paid in schools.
My problem with Unionized workers, PUBLIC SECTOR unions especially, is that I have no idea HOW MANY HOURS per year they work. That data is extremely important to understand what’s really going on with the numbers. I used to be part of a PRIVATE sector union, and I was often RIDICULED for working overtime.
Working in the public sector, I wonder if these CUPE employees are working overtime because one of the reasons I assume salaries in Ontario range from $42,900-$67,788 is that most Ontarians work overtime. Overtime becomes TABOO once you’re in a union, and I know this because I’ve been there and done that. I worked in the sheet metal industry, and one of the reasons I’d keep to myself is because, at my old job, I had what the younger kids call “Pocket watchers.”
People who worked with me would call me a “company man” if I did overtime because I assumed I would be making them look bad, I remember several times going to the washroom when everyone was ready to clock out at 3:30 pm to avoid my fellow union members asking me what I was still doing at my working station. That’s what SUCKS collectivism, you have to be part of the crowd, which is pathetic when you’re living in a free country.
Now, you might say that’s not a big deal, and you’d be right to assume that, but when you go outside from doing overtime at your job, and your tires are flat, or you got key mark scratches on your car, even if that didn’t come from your fellow employees, your mind starts to wonder, why me?
Why I’m even bringing this up again is because I don’t know how many hours these CUPE workers are doing. Nor do I know how labor-intensive their jobs are? My mind is wired differently; my thinking is if you’re not paying me what I believe I’m worth, I might not quit right away, but I’m DEFINITELY looking for another job and transitioning AWAY from the job not paying my worth.
One of the reasons I liked working in the private sector were the work hours, which allowed me to work multiple jobs at once; for example, I had 7 am-3:30 pm job and an 11 pm to 5:30 am job. I still remember the shock I got the first year I did this, and I owed the government BACK TAXES because I reached another income tax bracket.
I know I’m no alone on this; there are plenty of Ontarians with more than one job, so for myself, I find it hard to relate to the CUPE strike. I’m actually against PUBLIC sector unions; I think public sector unions should be ILLEGAL because, after all, public sector workers get paid from taxpayers; I actually don’t even think POLITICIANS, including Doug Ford and Justin Trudeau, should be allowed to DECIDE their salaries.
Being that we’re in a democracy, I think the VOTERS should have more say in how public sector workers are paid. It’s very difficult for me to find any information on how many hours, on average, these CUPE members work because this would obviously play a huge role in my decision on what they should be paid.
I also don’t know what they do; I know a lot of PUBLIC sector jobs in Canada could be done by the private sector, as an example an educational assistant (EA) making $39,000 per year for ten months of work is very good money. Consider reading the article below on the CUPE website.
People often assume that EAs and other education support workers make teachers’ salaries. That couldn’t be further from the truth. My annual income is about $40,000 per year, which includes employment insurance payments that I collect during the summer since there’s no work. My monthly take-home pay after taxes and pension contributions is $2,200. My rent is $2,350. My husband works in construction, and he’s the only reason I can continue to do this job and keep paying the bills. I hear co-workers talking about how they could make more money working at Costco.
Now, for me, if I felt like $40,000 wasn’t good money for 10 months of work, I would DEFINITELY be working at Costco, but you see, this is usually the attitude of entitled people. Net pay for $40,000 per year is around $29,000, which works out to be about $2400 per month; she takes home $2200 because of $200+ pension, which is a good deal if you ask me because that pension will pay her for LIFE and let’s say she works 25 more years, let’s do some GENEROUS Pension math $300 per month x 12 months x 50 years = $180,000.
Imagine paying $180,000 and generating income for the rest of your life. Sign me up for that pension, please. Some people spend $180,000 in 2 years, she’ll potentially buy a pension on the cheap.
When it’s all said and done, she is absolutely right when she says that she can’t survive without her husband based on her rent costs.
So how do you fix this? My answer has been to CUT government regulations and get the Federal government out of the housing market. There’s a housing shortage in Ontario that exists because Ontarians wanted RENT CONTROLS. Everyone knows price controls lead to SHORTAGES; I’m not going to spend money building housing only to have the government slap with legislation that doesn’t allow me to raise rents to justify my higher costs.
Currently, in the private sector, all landlords are paying higher MAINTENANCE costs, and a lot of tenants are NOT paying their rent, but you see, these landlords can’t run to the government and complain; a lot of these landlords have to work 2 and 3 jobs, to cover their COSTS. Because if a landlord can’t pay their mortgage, the bank sells their house, potentially at a loss.
Now, in an effort to get more rental apartments built, Ontario has scrapped rent controls for units built after a certain period of time; however, people are already calling for rent controls, which is something most of us anticipated would happen, unfortunately. I bring this up because this post is about PRICE CONTROLS and how Justin Trudeau is knocking the Canadian economy out of whack with his war on fossil fuels.
Fossil fuels, whether you like them or not, finance and create our standard of living, and if you want to phase them out, you should be aware of the devastating effects it’s going to have on our standard of living. The number one sector I see shrinking in the future if this war on fossil fuels continues is the PUBLIC SECTOR.
Why I write about Austerity Measures; is because this war on fossil fuels GUARANTEES consumer price inflation until fossil fuels are replaced with a VIABLE alternative. Currently, solar, wind, and Biomass are not reliable or viable alternatives to fossil fuels. Biomass, for the most part, is extremely wasteful, and the shelf life for those solar panels and wind turbines isn’t as long as most of us initially thought.
What I’m getting at here is that it could DECADES before this new energy dream is realized, we’re in the early stages, and ALREADY consumer price inflation is running rampant. Sure, people who don’t know what’s going on can blame Doug Ford, but it’s not going to matter once people comprehend that inflation is NOT going to slow for as long as these regulations on fossil fuels remain enforced.
As an investor, I think you should imagine the possibility that the Canadian dollar WILL be debased, at least DOMESTICALLY. I’m not sure how the Forex markets will value the Canadian dollar, meaning that your Canadian dollars might be better spent OUTSIDE of Canada. Still, domestically, it looks to me that people on FIXED salaries are going to ask the government for a pay increase. There’s a lot of legislation in place that guarantees a lot of these public sector workers a pay raise.
Once you comprehend the price control mechanism in Canada, you’ll better comprehend my argument that DOMESTIC Canadian dollar debasement is more likely than not, and you’d be wise to prepare yourself for it.
Interesting times ahead!