The Canadian economy has record inflation, with wage growth not coming anywhere near meeting it.
The CBC seems to think that GDP is everything. The GDP is not a marker of the economy as a whole. The GDP is simply the overall production in the country, GDP-per-capita is the GDP divided by the number of people in the country. It is an artificial measure of success that does not measure the well-being of individual people and families.
The Canadian economy mostly started 2022 on strong footing, despite the impact of the Omicron coronavirus variant and protests that shut down key border crossings, as fourth quarter growth came in above expectations, official data showed on Tuesday.
Canada’s economy grew 6.7 per cent in the fourth quarter on an annualized basis, beating analyst expectations of 6.5 per cent, while January GDP most likely rose 0.2 per cent after stagnating in December, Statistics Canada data showed.
With January’s gain, which is a preliminary estimate, economic activity is now 0.6 per cent above pre-pandemic levels, the agency said.https://www.cbc.ca/news/business/canada-gdp-1.6368400
The Canadian economy has record inflation, with wage growth not coming anywhere near meeting it. The supply chain is being disrupted by vaccine mandates and made even worse by the Emergencies Act, from both uniquely Canadian issues and international ones. In January 2022, we lost as a country, 200 000 jobs. That doesn’t sound like strong footing to me.
Canada’s economy lost 200,000 jobs last month, according to Statistics Canada, as COVID-19 shutdowns related to the Omicron variant saw many businesses close up shop.
The data agency reported Friday that the decline pushed the unemployment rate up half a per cent, to 6.5 per cent. That’s the first increase to Canada’s jobless rate since April 2021.
Most of the job losses were concentrated in Ontario and Quebec, two provinces that saw some of the hardest and earliest surges of the Omicron-driven wave, and which both moved to lock down in reaction. Economists had been expecting a bleak figure, but the 200,000 lost jobs was roughly twice what they were anticipating.
As was the case during previous waves, accommodation and food services bore the brunt of the job losses, with 113,000 jobs lost during the month. Another public-facing industry, retail, was also hit hard, losing 26,000 workers.https://www.cbc.ca/news/business/canada-jobs-january-1.6339345
Inflation in Canada hit a 30-year high at the end of 2021 with warnings from economists that the pace of price increases could rise even higher and stirring expectations of a central bank response before the month is over.
Statistics Canada reported Wednesday that the annual pace of inflation climbed in December to 4.8 per cent, a pace that hasn’t been seen since September 1991.
Driving growth on the consumer price index were prices for groceries that climbed year-over-year by 5.7 per cent — the largest bump in a decade — and for housing that climbed by 9.3 per cent compared with December 2020.https://www.ctvnews.ca/business/canada-s-annual-inflation-rate-highest-since-1991-1.5745673
What we should be focusing on for economics is inflation, jobs, and wage growth, all of which are in terrible shape right now.
Statistics Canada said the consumer price index for the full year of 2021 rose at its fastest rate since 1991, pointing to widespread global supply-chain constraints and the release of pent-up consumer demand as the economy reopened.
The year-over-year change in prices in December outpaced gains in wages over the same stretch. Statistics Canada said wages rose 2.6 per cent between December 2020 and last month, meaning Canadians saw a drop in their purchasing power.https://www.ctvnews.ca/business/canada-s-annual-inflation-rate-highest-since-1991-1.5745673
The CBC is doing the same thing the media accuses conservatives of doing when the economy is doing poorly – pointing to the GDP and the stock market, when those aspects of the economy can be manipulated by outsiders and rarely correlate to the well being of real people. The GDP doing well means as a whole we are producing more products, but we are producing more while the worker is earning less. The stock market measures success of corporations, not families.
There are rising prices, massive and increasing job losses, and empty shelves at the supermarkets and the CBC, which is a branch of the Canadian government is lying to you pretending it’s all just fine. The COVID policies as put in place by the governments of the world have facilitated the largest transfer of wealth from poor to rich in world history.
The economy only looks good on paper because Jeff Bezos is shipping all of your gay dildos to you while you’re locked in your home eating ever-more-expensive takeout and masturbating.
The Canadian government has increased spending massively and is printing worthless toilet-paper money to match it. Our debt as a nation has now exceeded our GDP, but you won’t see that in the media. We are spending far more than we are making.
People often ask, “how will we pay for this.”
And the answer from the Liberals is “by printing a ton of money.”
The Bank of Canada balance sheet has been expanding rapidly, and they are in effect enabling this massive government spending by keeping interest rates low.
This has consequences of course, and we are seeing those consequences in rising inflation everywhere, from food, to housing (the housing market absurdly surged during the depths of the recession last year), and makes a mockery of the government claim that inflation is only 1.1%.
We are definitively entering the era of fantasy economics, where money is thrown around so liberally that it loses value, and loses touch with any semblance of real value.
For a time, it will make people feel great, but sooner or later the consequences begin to creep in, and rising inflation and an absurd housing market are the initial warnings signs that something is seriously wrong.
You can’t print your way to prosperity, just as you can’t spend your way to wealth, yet the Liberals are determined to try both.https://spencerfernando.com/2021/04/19/canada-budget-2021-liberals-double-down-on-money-printing-debt/