Stephen Poloz and the inconvenient truth about job vacancies in Canada – April 25, 2019,

What’s going on with Job vacancies in Canada, are job vacancies in Canada the fault of the Bank of Canada? Nope! However when Stephen Poloz is making his decisions regarding interest rates he has to make predictions and make fancy speeches in order to calm market speculators. Job vacancies exist primarily because of government regulations, as some of us old-timers can remember, companies in the past would train people, in many instances low IQ uneducated people sometimes with only a high school diploma to run entire industries.

If you’re wondering why large companies stopped doing this, well we live in a litigation society, where in Canada, for the most part, we’ve taken the regulatory approach to prevent litigation in the first place. Now, I’m not against regulations, I’m against price control regulations, but I’m not against regulations in general, let’s tell the story how it should be told, some business people are bad, but… let’s not act like there aren’t bad politicians either. A lot of the times when many of these job-related regulations are written up, they’re written to benefit particular companies and particular types of companies. Like the Carbon tax as an example, that tax is basically a redistribution tax, it’s important to understand that although Trudeau paints a rosy picture about the benefits of the Carbon tax, the reality is that this Carbon Tax money will be sent to entities of Trudeau’s choosing.

Now if you’re on the wrong side of Trudeau’s carbon tax, aren’t you going to be more selective with who you hire to work for your company? The Private Sector pays the bills of the public sector, however, the public sector via legislation can destroy entire industries or change the entire behavior of industries. The reality regarding Stephen Poloz’s decision not to raise interest rates revolves around consumer debt and nothing much else, if there’s a crash in the consumer debt market in Canada, it means that Canadians have to work more.

When people can qualify for debt or for loans, it’s a different feeling, people tend to feel richer and tend to spend more freely, in the event Canada has an exodus of lenders, the government, for the most part, is screwed especially in a heavily regulated job market where there are already a lot of job vacancies. It’s important to understand that most business people don’t have a problem paying their employees what they’re worth, the number 1 thing business people think about is litigation as well as costs and liabilities. Regulations equate to heavier scrutinization when employers are hiring employees.

I say this because there’s an assumption that Canada needs more immigrants to fill all of these job vacancies, this is a lie, Canadians need an incentive or they need to be disincentivized to be on the government dole. There’s currently an incentive for kids coming out of high school to waste time in college getting a degree that they’ll never use. If you’re under the impression that employers wouldn’t prefer hiring or training students right out of high school you’re wrong, the problem is most of the children graduating haven’t been exposed to the real world and in many ways won’t be exposed to the real job world until they’re in their mid-twenties.

What often happens is after a student graduates college and gets that feeling of accomplishment, they often abandoned their careers. This is pure speculation on my part, but I’m of the belief that after a student graduates and then has to remember what she/he learned in school to apply it to the job, most get scared and instead pursue their “true calling”. If a person graduates and doesn’t work in the career they wasted all their money in school for, this will obviously lead to less qualified applicants, but you see when there are job vacancies employers are also faced with another dilemma and this dilemma is what leads to Canada’s brain drain. If you’re a talented astute engineer it only takes you a few interviews to realize how in demand you really are, so this is where the lower loonie and standard of living comes into play.

It’s this warped, twisted ideology some people have that, they believe they’re not paid what they’re worth. When you’re worth more in the free market, you get paid more, it’s really that simple. If an employer isn’t paying you what you believe you’re worth, you start your own business, talented engineers often turn down jobs or quit because they have an abundance of offers. I say this because Stephen Poloz is picking the side of the financially irresponsible and well, there’s a price society is going to have to pay for this. The article below written by Don Pettis details what may have gone into Stephen Poloz’s decision making which led to him freezing interest rates.

Trade shock, harsh winter and Doug Ford blamed for pausing the Canadian economy: Don Pittis – CBC

The game is already over, the Canadian economy is on life support, it’s pretty obvious right now, however, this doesn’t mean that governments and central banks can’t attempt more financial wizardry. My personal view is that Canada is facing a different challenge than other countries, we border with America, America, as it stands now, is the closest country a capitalist society, what this means for Canada is if we had a strong dollar, Canadians wouldn’t have to work as hard, but to see things from my perspective you’d have to abandon the Canadian protectionist ideology, something I’m doubtful will ever happen. Even Doug Ford, practices protectionism, Doug Ford isn’t shrinking the size of government what he’s doing is trying to make government run more efficiently. Basically, he’s Stephen Harper and as I’ve stated over and over again, Stephen Harper created Trudeau.

One day Canadians couldn’t see much difference between Stephen Harper and Justin Trudeau, both were offering free stuff, the difference was Justin was offering more free stuff, Canadians voted Justin and he did what most Leftist politicians do, which is increase deficit spending, his excuse was interest rates were low, and he did it, well as we all know he hired a lot more public sector workers with deficit spending and well, the results haven’t been impressive and now, more than ever pressure is mounting to raise interest rates.

Worse than a rising interest rate market is the possibility of negative interest rates, I think people forget, we’re near zero interest rates now, even if interest rates go into the negative what kind of stimulative effect will it have? In regards to housing, what kind of effect would 50 or 100-year amortization have on the Canadian economy, especially if wages in the private sector aren’t rising?

The mortgage bubble is caused by more people qualifying for mortgages they’d otherwise not qualify for, the debt bubble is based on overvalued asset prices, this will get corrected one way or the other, so prepare yourselves accordingly.

Interesting times ahead