Politics
Canada’s Population Explosion Under Trudeau Triggers Housing Shortage
The Trudeau government declared on March 21, 2024, that it would accept fewer temporary residents due to the difficulty of assimilating so many newcomers so quickly. However, population growth appears to be accelerating in 2024.
Statistics Canada’s Labour Force Survey, the population aged 15 and over increased by approximately 411,000 in the first four months of the year, representing a than 50% increase over the four-month growth in early 2023.
This new acceleration was the focus of a recent research paper by Stéfane Marion, chief economist at the National Bank of Canada. “The demographic shock is getting worse in Canada,” he told Canada’s Globe and Mail.
Canada is seeing its strongest population expansion in decades, thanks almost exclusively to foreign migration, which includes the entrance of temporary workers and students. The population increased by about 1.3 million last year, or 3.2%, the fastest rate since the late 1950s.
Every month, tens of thousands of households participate in Statistics Canada’s labour survey. While the government includes population data in its monthly jobs report, they are not official estimates. Statscan publishes a different population report on a quarterly basis; the next edition is due June 19.
Nonetheless, these data indicate that Canada’s economy has remained strong to begin the year, which could complicate the federal government’s efforts to limit migration.
For the first time, the Trudeau government will impose limits on temporary residents beginning this fall. The government aims to reduce this group to 5% of the total population during the next three years; at latest count, they accounted for 6.5%.
Given those plans, “it would seem that many people have decided to come to Canada earlier,” Mr. Marion said, stressing that housing affordability may worsen in the short term.
Several analysts have predicted that Canada’s population growth will eventually decrease to approximately 1% when these new laws take effect.
Housing Affordability in Canada
Meanwhile, Stéfane Marion fears that housing affordability difficulties will increase amid another surge in immigration numbers.
“Demographic shock is worsening in Canada. The working-age population (aged 15 and over) increased by more than 100,000 in April, bringing the total to more than 410,000 after four months in 2024.
According to today’s Hot Chart, this is a significant acceleration (+47%) above the 278,000 increase seen in the first four months of 2023. Greater Toronto, where population growth hit a record 107,000 at the start of the year, has accelerated by 66% compared to 2023.
Greater Montreal and Greater Vancouver have not lagged behind since the beginning of 2024, with growth more than doubling that recorded in 2023.
With Canada’s Minister of Immigration, Refugees, and Citizenship, Marc Miller, announcing plans to curb immigration in 2025, it appears that many people have decided to come to Canada sooner.
Housing affordability issues could increase in the coming quarters, as we approach another record year of population growth.
RBC indicates a loss of affordability in Canada
RBC’s aggregate affordability score for Canada increased by 2.8 percentage points to 62.5% as mortgage rates rose and property prices rose somewhat. (An increase in the measure indicates a loss of affordability.) This reversed a little improvement in the second quarter.
The issue is particularly acute in Vancouver, Victoria, and Toronto, where property ownership is extremely expensive. Ottawa, Montreal, and Halifax also confront difficult affordability issues.
Last quarter, purchasers’ already bad situation deteriorated even further. A typical household required to set aside an additional 4.4 percentage points of its income to afford the costs of owning an average home at current prices and interest rates.
In fact, the entire income of that (median) household was insufficient, with RBC’s aggregate affordability metric coming in at an amazing 102.6%. The only practical choice for most ordinary consumers remains a less expensive condo apartment, which is still out of reach for many.
Home purchase activity has cooled again after unexpectedly rebounding last spring. Furthermore, prices are beginning to fall from their summer highs. In the face of significant affordability pressures, we believe the downward trend may accelerate in the near term.
Keywords: Canada News, Canada Population
Politics
Trudeau GST Tax Holiday to Cost Taxpayers $6.3 Billion
Prime Minister Justin Trudeau announced a two-month GST break on some purchases and a one-time $250 rebate for all Canadians earning less than $150,000. The proposed GST break would last from December 14 to February 15.
The Liberals said it would cover various things, including children’s clothing and shoes, toys, diapers, restaurant meals, and beer and wine. It also refers to real and artificial Christmas trees, snack foods and beverages, and video game systems.
The move will cost taxpayers almost $4.7 billion, and the GST exemption will cost an additional $1.6 billion, totaling $6.3 Billion.
The federal government is now running a significant deficit. This raises the question of who will have to foot the $6.3 billion bill for today’s one-time payments. The government will have to borrow the money, and future taxpayers must either repay it or service the additional debt perpetually.
Critics argue that the GST credit is a collection of terrible ideas that will do little to lift Canada out of the long-term economic rut in which our economy is stuck.
Conservative Party Leader Pierre Poilievre responded Thursday to Prime Minister Justin Trudeau’s pledge of a “GST Holiday” for Canadians, calling it a “tax trick.”
Poilievre stated that the temporary exemption from the Goods and Services Tax on various ordinary commodities “would not make up for the permanent quadrupling carbon tax on heat, housing, food, and fuel.”
Bloc Québécois leader Yves-François Blanchet stated he is “against any idea of a prime minister who says, ‘I will give you money in order for you to consider voting for me.'”
According to the Canadian Federation of Independent Business, temporary sales tax holidays will only increase confusion and administrative burden for small business owners.
A temporary sales tax decrease would help boost demand in some industries, including restaurants, Canadians, and companies, which require sustainable tax relief during the slow post-holiday season.
The changes amid an inflation-driven affordability crisis have left many dissatisfied with the Trudeau government. A federal election is scheduled for before next October, although it might happen sooner if the minority government falls before then.
For months, the Conservatives have held a double-digit lead over the Liberals in public opinion polls, with Leader Pierre Poilievre promising to cut taxes and government spending to restore affordability.
High inflation has also pressured the Liberals to avoid proposing policies that would boost spending and raise fuel prices.
According to the Fraser Institute, The Trudeau government got one thing fundamentally right: Lowering the tax burden on Canadians has benefits. Unfortunately, the policy package it has proposed to deliver tax relief is completely wrong.
It lowers the incorrect taxes, moves taxes temporarily rather than lowering them, does little to improve economic incentives, and punishes future taxpayers. With the holiday season approaching, this attempt at a gift for Canadian taxpayers is the economic equivalent of a lump of coal in the stocking.
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Politics
Matt Gaetz Withdraws as Trump’s Pick for Attorney General
Congressman Matt Gaetz has withdrawn as President-elect Donald Trump’s candidate for Attorney General, citing concerns about a federal sex trafficking probe that cast doubt on his ability to be confirmed.
Gaetz resigned after failing to persuade the Senate to endorse his contentious candidacy. Shortly after Gaetz’s unexpected departure, the president-elect issued a statement applauding his former AG nominee’s choice to seek Senate confirmation.
“I greatly appreciate the recent efforts of Matt Gaetz in seeking approval to be Attorney General. He was doing very well but, at the same time, did not want to be a distraction for the Administration, for which he has much respect. Matt has a wonderful future, and I look forward to watching all the great things he will do!” the president-elect wrote on Truth Social.
Gaetz had earlier stated that he was retiring from his current seat in Congress and would not take the oath of office for the upcoming session, which begins in January. Now that he has withdrawn from consideration for AG, his future in Washington is uncertain.
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Politics
Eric Hovde Concedes The United States Senate Race To Tammy Baldwin.
(VOR News) – Eric Hovde, the Republican candidate for the United States Senate, has acknowledged that he was defeated by Tammy Baldwin, the Democratic candidate for the same seat on the ballot.
Baldwin acknowledged Hovde’s defeat and consented to it. Furthermore, he released a statement in which he contends that the election results are not only inaccurate, but also devoid of any factual foundation.
Eric Hovde experienced this two weeks after the election.
Baldwin emerged as the unofficial victor of the Senate campaign in Wisconsin, a race that was closely monitored by a significant number of individuals. Baldwin was awarded the title of victor on November 6th. Baldwin emerged victorious by a razor-thin margin.
According to the data provided by the Associated Press, Baldwin emerged victorious by a margin of 29,116 ballots, which is approximately equivalent to 0.9 percent of the total votes cast. Baldwin emerged victorious by a substantial margin, as indicated by the results.
Hovde issued his public apology subsequent to the conclusion of the canvassing of the results by the majority of county clerks throughout the state. This process will ultimately result in the results being recognized as official. Publication of Eric Hovde’s decision. Not only were the results announced at this time, but they were also proclaimed in an official capacity.
The exact phrase of the announcement, “Thank you for your support,” was included in a post by Eric Hovde on Monday and published on the social networking site X.
The public was notified of this announcement. The announcement was public on Monday. It has drawn a lot of attention. “It is time to begin moving on.”
In contrast, Eric Hovde’s film began with a somewhat less inclusive tone, which persisted throughout. He made this assumption without offering any evidence to back it up, and his claims that there were “many troubling issues” with absentee ballots tabulated late on election night were factually incorrect. His claims were not supported by empirical evidence.
His claims were unsupported by any proof. Not a single piece of evidence could possibly prove that his allegations were correct. He stated in the statement that “numerous supporters” had demanded that he challenge the election results. He acknowledged receiving the request.
Eric Hovde acknowledged receiving these demands.
In particular, Eric Hovde asserts, “However, a request for a recount would serve no purpose if it were not for a detailed review of all the ballots and their legitimacy, which will be difficult to obtain in the courts.”
Subsequently, you would recount the identical ballots, regardless of their authenticity. This is the reason, as elucidated in this article. This is the rationale for the current state of affairs.
Hovde and his campaign refrained from issuing any public statements subsequent to Baldwin’s disclosure that Eric Hovde had emerged victorious in the election, which transpired over a week after Baldwin’s initial announcement.
The previous week, he uploaded a video to social media platforms that expressed his “deeply concerned” sentiments regarding the election results in Milwaukee.
The election was conducted in Milwaukee. While the film was being screened, there was a discussion regarding the results of the election in Milwaukee. As the ballots were still being counted in the largest city in Wisconsin on the evening of the election, he expressed his “shock” at the sequence of events that had transpired.
Eric Hovde was emphasizing the occurrence of specific events.
In addition, he declared that ballots were still being tallied at the time of the election. Eric Hovde made this declaration during the voting period, while ballots were still being tabulated.
Baldwin’s team referenced her victory speech, which she delivered the week prior to the election, in response to a request for comment that was submitted on Monday.
In response to the campaign’s request, this action was implemented.
A representative of Baldwin’s team has verified that “Hovde has not called,” which is consistent with the information that was disclosed on Monday morning. The representative who provided these details has worked in a variety of capacities throughout their career.
SOURCE: WPR
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