Theo Argitis: Why economists — not politicians — are raising alarms around immigration
Economists are raising some red flags about Canada's accelerating immigration numbers as stresses grow in the housing market. Read more herefinancialpost.com
Economists are raising the alarms on Trudeau's mass immigration policy. They are saying rapid population increase is reducing the standard of living for most average Canadians. The GDP per capita is shrinking and is becoming stagnant. Not only increasing population is making companies less willing to invest when hiring and the wages drop. The inequality is growing.
Direct Quote from the Article
Economists though — a handful at least — are beginning to raise some flags as stresses grow in the housing market and data show the economic gains from accelerated population growth may be producing diminishing returns.
The numbers are big and historic and well ahead of our peers.
Canada’s population is estimated to have increased by just over one million last year — easily a record and up 2.7 per cent from 2021.
We all know this is producing strains in housing
Stéfane Marion, chief economist at National Bank of Canada, pointed out in an April 10 note that the ratio of housing starts to working-age population has fallen to the lowest on record. “Ottawa should consider revising its immigration targets to allow supply to catch up with demand,” he said.
But it’s not just housing. Economists are beginning to see warning signs in another gauge: rising population isn’t coming with a commensurate increase in economic output.
According to data released by the International Monetary Fund last week, Canada’s population growth will help fuel the biggest increase in national income among G7 countries over the next six years, but our economy will also see the smallest increase in GDP per capita.
Biggest increase in national income is key for the government, it means government will make record profits off taxes because of more population and higher inflation. The GDP per capita tells the true story which means peoples incomes are going down compared to the cost of living.
Trudeau is holding a big meeting trying to correct his failure provoked by his massive immigration policy.
I call him Justin TOO LATE Trudeau in most of his actions.
Now he acknowledge the big deficit in housing.
Does he acknowledge too the extreme high cost of houses and appartments rents caused by his almost 9 years as Prime Minister ?