The Federal Government of Canada Can Solve The Local Housing Crisis with less Involvement: Residents skeptical federal budget’s housing plan will cool Toronto’s market – April 8, 2022,
One of the major problems with the Canadian FEDERAL government is its involvement in almost everything. I’m a part of a rare few in Canada, who see the Federal Government as the main problem in the housing market. Many in Canada look to the Federal government as the solution, I point the blame squarely on the various levels of the Federal government. I start with the Bank of Canada(BoC), then there’s Canada Mortgage and Housing Corporation(CMHC), and then ofcourse there’s the Federal government itself, currently being led by Justin Trudeau.
To the people who point the blame squarely on Justin Trudeau, I disagree, what Justin Trudeau represents is the dumbest politician for the economy in my lifetime, but I wouldn’t point the blame squarely on him for the housing market, this actually all dates back to Jean Chrétien Liberals, and this problem began to escalate under Stephen Harper. Justin Trudeau and his government merely have no idea what they’re doing.
What Justin Trudeau is trying to do is spend his way out of the mess he is creating. The problem with Left Wingers is that they imagine their economic regulations won’t raise prices or cause shortages. So when they spend, they also regulate, on the flip side, the Conservative party of Canada often does not reverse the policies created by the Liberals, instead, the Conservatives will often try to make Liberal policies better.
Conservatives are often scared to shrink the size of government, which ultimately equates to a Pierre Trudeau or Justin Trudeau spending like crazy. Unlike Pierre Trudeau, Justin Trudeau is destroying the family name. There will be nothing memorable about Justin Trudeau, he only had a majority government once and his accomplishments include scandals, embarrassing Canada on the global stage historic inflation, and destroying the Canadian economy. As an Ontarian, Justin Trudeau reminds me of Kathleen Wynne.
When Kathleen Wynne exited politics, Ontario has enough of her, even die-hard Liberals couldn’t find it in themselves to vote for her. Justin Trudeau is survived by his name, if his name was “Justin Johnson” he would have lost already, Liberal voters know the importance of preserving that name, because Liberals are getting less popular in Canada, in fact, if the NDP ran somebody better, Trudeau would be gone.
The Federal government can’t fix local housing problems, because each province and municipality has its own rules and regulations on housing. As an example, if a Province or city has rent control laws, and the CMHC rewards developers for building condos, obviously, the developers are going to build condos, this should’ve common sense. If interest rates are near zero percent, with little to no chance of rates going above 2.5%, obviously, you’re going to get a lot of LOCAL speculators in hot Canadian real estate markets.
Buy low sell high, because the Canadian dollar is going to become worth-less over time. There is no appetite in Canada to shrink the size of the government, meaning that it’s likely the cost of housing is going to deflate. Now, even if the Federal government cools the housing market, you’re still talking about inflated maintenance costs, not only is inflation not transitory, disinflation appears unlikely for the forcible future.
a lot more people are going on strike and quitting their jobs looking to be paid more because the Canadian dollar is purchasing less, these additional costs even if they’re only a few dollars per person adds up, making matters worse for individuals, corporations and the government are in record debt levels. There’s a cost to service that debt, sure for the Federal government, they service their debt by giving themselves a pay raise and borrowing more money from the bank of Canada which doesn’t raise rates based on the market, but instead bases its interest rate policy on government spending.
All of this malinvestment, leads, too bad decision making, I’ve read articles in Canadian media, that claim the Canadian economy is booming, which gives Justin Trudeau the right to spend more money? But if an economy is coming and you’re running a deficit, wouldn’t now be a good time to pay down the deficit? Why then did Justin Trudeau add $1,400 per Canadian in new debt? The answer is simple, the Canadian economy is actually DEFLATING.
Consumer price inflation is actually economic DEFLATION. In a capitalist society, the CAPITAL is supposed to APPRECIATE, meaning that my dollar is supposed to buy me MORE not less in the future. Because of this known fact, in a capitalist society, a lot of people instead of going into debt, will become their own bankers and demand their money purchase more goods and services.
The government ofcourse doesn’t want the common man to be able to save money, because then the government collects fewer taxes and will therefore have to shrink in size, in fact, the stronger a currency gets, the less need society has for social spending and government intervention. As many people know, capitalism is fueled by INNOVATION, technology has made a lot of things extinct, and had it not been for government interventions, real estate agents, taxi drivers, and post office workers in many respects would have shrunk in size.
There are a lot of jobs in existence today, that only exist because of the government, even Blockchain technology threatens to end banking as we know it today. This is what capitalism does, but Big government, wants to make itself relevant, so even when CMHC mortgage insurance, turns out to be a complete disaster, even when zero percent interest rate policy turns out to be a complete disaster, even when the Federal government intervention in the economy turns out to be a complete disaster, the Federal government will keep sticking its nose where it doesn’t belong.
Interesting times ahead!