We had no inflation after 2008 when governments spent at historical records. The response to COVID was necessary and created supply shortages which combined with rising gas prices and the war in Ukraine raised inflation. We had similar supply shortages and inflation after WW2 when so,diets returned home and pent up demand e prided while factories were still converting from building munitions. Inflation hit 15% in 1946. It was back to normal a year later. Similar to now with inflation at normal other than interest costs being so high. Stop raising rates and we're fine
The Economic Depression has arrived
- Thread starter Butler1000
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You have it exactly backwards. The Canadian "official " inflation is more than double the desired level. ALL inflation is created by the governments ' fiscal policies , like flooding the economy with government's money. All other indicators and symptoms are only a reaction to the monetary policies.
A big culprit is Corporations raising prices to make up for Covid Losses. This has been proven and leaked from shareholder meetings. In multiple industries.
Everyone is raising prices to offset the basic labor costs and materials increases. That's the problem with inflation, no one wants to own it.
Right, cuz that was totally the only time that's ever happened and so definitely not happening now.
Your government caused the inflation crisis that spun out of control. It was completely predictable and foreseeable to anyone with even the smothering of the economic knowledge. Just not our PM or the people at the Bank of Canada or the morons in the media. The system worked when the grocers attempted to manipulate the prices and they got busted. It failed completely when Justin went into money printing business.
Inflation was global and Canada did comparatively well.
Our government did fine.
No, we didn't do well. People can't afford homes and groceries. As for "global" , get a life. Almost the whole developed world followed the same course.
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Toronto makes list of most liveable cities in the world but not everyone agrees
The 2023 global liveability index was officially released on Wednesday, and Toronto managed to climb its way back into the top ten list once again, t…
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Many businesses are beginning to see a tailing off of sales following the exhaustion of post-covid pent up demand. GDP growth continutes to be weak (and less than the growth required to sustain our standard of living). Real wages are declining. Consumer debt per capita is rising. Percentage home ownership is declining. Those who can afford it are investing in housing instead of businesses because they don't trust the markets. Canada is in BIG trouble.
Not to mention the commercial RE market is in huge trouble and the residential mortgage lenders are extending the terms to avoid the implosion. We have a shit sandwich on our hands.
Commercial vacancy rate in Toronto is over 15% - the highest in almost 30 years! https://www.cp24.com/news/once-in-a... commercial real,highest it's been since 1995.
It's a disaster, yet Torontonians are on the cusp of electing a Mayor who thinks taxes on business properties can be increased!
The people of Toronto will get the Mayor they deserve. I think that we need to hit rock bottom to learn a lesson- NOTHING IS FREE.
the Canadian Government also layered on an inflation driving carbon tax
which has been increased & soon will be accompanied by an inflation driving clean fuel standard
Justin Trudeau is the worst thing to ever happen to Canada
I have been on business to about 10 US cities in the last 2 years. It's a disaster all over. And the worst is it's gonna be much worst as the commercial lease are usually for 10 years. So in the next few years business will drop their lease and/or cut them to about 50%. Even our government is thinking about cutting 50% of their commercial lease as their employee wants to WFH.
Hopefully this collapse will lead to more residential units... At a more affordable price.
MBS and Putin and the oil despots you love are driving higher oil prices.
The smart move is to move to cheaper renewables and to take their power away.
It is difficult to economically convert commercial space to residential, especially if the commercial property was acquired in the last 10 years on the premise of commercial revenue. The most likely outcome of prolonged high vacancy is that large commercial landlords will buy out smaller landlords and simply sit on the space until (and if) the market ever recovers.
They are already turning over properties to banks. Brookfield defaulted on 1 billion in loans related to LA properties(they are huge owners there) and Hilton just turned the over the keys to two San Fran properties back to the bank.
