Unemployment rate jumps to 5.7% in July as more people look for fewer jobs, Quebec and P.E.I Housing Boom Construction jobs – August 10, 2019,
I prefer leaving little to the imagination when the mainstream media in Canada, presents employment information to the public. I write these posts because the Canadian economy needs to change quickly otherwise we’re heading down the road of places like Italy, Greece an Argentina. Yes, it’s getting that bad and the truth is it would be far worse if Canada wasn’t lucky enough to be bordered with the United States.
If a person simply looks at the quality of life between Canadians and Americans, Canadians have a much better standard of living, however, the Canadian currency isn’t reflective of this, why? Because Canada’s public sector, which we should include Crown Corporations as public sectors is so large that in this debt-fueled economy they’re becoming a hinderance for job growth. The loonie is low to pay for our public sector, if the Loonie appreciates, public sector workers whose wages keep pace with inflation would also increase, which would mean Canada’s private sector would have a much larger tax bill.
The years of socialist dominance in Canadian politics needs to be questioned right now, otherwise, Canada will experience an economic depression tapered over with cheap money. Isn’t this what’s happening all over the world you ask? Yes, however Canada is considered a G7 nation which gives us a lot of perks, we shouldn’t be a G7 nation by the way, but we are and if it becomes apparent that we can’t pay our own bills or that our government can’t have honest dialogue to our people about austerity measures or making the Canadian economy more competitive, we as a country are headed for unnecessary economic disaster. The CBC article below gives you a preview of the economic disaster heading Canadas way.
The worst part of the article is optimistic news about the Canadian economy when it talks about job growth in P.E.I and Quebec.
Unemployment rate jumps to 5.7% in July as more people look for fewer jobs – CBC
Now, I want the reader to understand something quickly, the Toronto and Vancouver housing markets are unaffordable, not only are housing prices too expensive but rental prices are very expensive in Toronto and Vancouver, so much so that it’s obvious at this point that most of the condos built in Toronto and Vancouver are empty, this is not to say that there aren’t people monitoring empty condos, as an example if I owned an unoccupied condo(which I don’t btw) I might get a friend to stay there, I might rent it out temporarily to people I know, I might put it on Airbnb , I might put it out for sale etc. But as an owner of real estate, I’m not going to deflate my selling price unless I’m in dire straights, especially if my money is safer in Canada than it is in a place Communist China.
Now because of this, foreign and domestic real estate investment is going to places like Montreal and PEI. I want you to notice the CBC source I’m using to make my point. Consider reading the articles below regarding real estate prices in Quebec and PEI:
Now, when you tie those 2 articles into the CBC’ most recent article titled Unemployment rate jumps to 5.7% in July as more people look for fewer jobs you’ll begin to see why Canada’s 2 most destructive Crown Corporations the CMHC and the BoC are fueling job growth at the expense of the entire private sector. CONSTRUCTION jobs which could also include manufacturing of building materials will, of course, increase if the government via the CMHC and BoC is subsidizing real estate development.
Now, prior to Canada destroying its version of the Glass Steagall Act, The Canada Mortgage and Housing Corporation (CMHC) which is now involved in Insuring mortgages couldn’t work in conjunction with the Bank of Canada, which sets interest rates and does whatever it can to prevent Canada’s credit market from rashing or correcting. Understand that if the housing market in Canada deflates, the Bank of Canada (BoC) and the CMHC will both suffer.
The reason why it’s never a good idea for the government to regulate finances is that those government agencies will have to go to war with deflation. If mortgage market crashes, CMHC is on the hook, if the Credit market crashes or even deflates, the BoC is on the hook if any of these schemes fail, they require a taxpayer-funded bailout and right now a large chunk of Canada’s working middle class is in debt.
I don’t see Canadians being okay with austerity measures or being fine with paying more money for less public services to simply prop up an inflated housing market, however, this is the disaster that’s on its way if Canada’s unemployment rate continues to get worse. Now, again the CBC article is intentionally short because they know the economic disaster that’s looming, but being that CBC is also a Crown Corporation, austerity measures could also equate to cuts to the CBC.
Interesting times ahead