Though Canada’s economy is not technically in a recession, economists say it “feels like one,” given the current economic circumstances, as high population growth prevented an economic contraction.
Higher interest rates alongside decades-high inflation in 2022-23 ate away at household purchasing power.
Weaker demand spurred a rise in the unemployment rate of a size that historically only happens in recessions.
For six of the past seven quarters, real per-person output has fallen alongside rising unemployment.
Per capita GDP has fallen to 3.1 per cent below 2019 levels.
The economists noted the only thing that prevented negative GDP growth in consecutive quarters – the typical definition of a recession – was a wave of new consumers
Consumer spending accounts for more than half of GDP
Seems like a lot to “back it up with,” as it were.
I mean, they are? They are additional consumers in an economy increasingly being driven by consumer spending, where spending per person is falling. So, adding more people keeps things afloat even though each person is spending less.
The main issue is that high immigration is a bandaid (doesn’t address the issues causing spending to fall in the first place, and new spenders just get sucked into the same crappy economic climate once they get here as everyone else) and it comes with a host of other issues (e.g. increasing scarcity of high-quality, appropriate and affordable housing leading to further reduction in consumer spending).
It’s recession-like in the sense the GDP per capita is going down which means everyone is getting poorer… however the definition of a recession only considers GDP as a whole so technically the country is growing despite everyone getting poorer.
But… but… All this time Canadian news media have been feeding me rage bait about immigration being the root of all of Canada’s problems.
I don’t know what to think! /s
Canada used immigration as economic equivalent of taking methamphetamine and painkillers to get things done, instead of eating right, exercising well and seeing a doctor. Yes, it works in the short term, but it’s really only kicking a problem down the road and making it worse when it’s too big to ignore.
We got here because we decided it was more important to give tax cuts to the rich and mortgage the futures of the poor, and when we ran out of poor people to strip-mine, we imported more, and it looks like we’re going to continue to elect governments that will twist themselves into knots trying to not get the rich to pay their fair share.
If there’s any consolation, it’s that we’re not alone among western countries that have snorted the neoliberal line, but we are one of the most vulnerable because we have precious little that anyone wants, outside of oil, and when that wobbles all that we have left is selling houses to each other. At least the Americans and Europeans have industries.
Rich pay their fair share?? That’s so backwards. Canada was created to transfer value from natural and human resources TO the wealthy and powerful. That’s what colonialism is. This isn’t some new thing, this is how it has been since the beginning, and it’s never ever ever changed. Canada exists to exploit the vulnerable.
I said we’re strip-mining immigrants for value. I’m not vilifying immigrants, I’m vilifying a system that treats people like a resource to be exploited.
I’d be totally fine with high levels of immigration if it came with investment in infrastructure. But it doesn’t and the reason it doesn’t is because we’re using immigration instead of investment because we’re bringing people in to avoid having to have an adult conversation about taxes.
Immigration because it’s the right thing to do? Sure. Immigration because Galen Weston doesn’t want to pay workers a fair wage, nor pay more in taxes? Nope.
Sure, I can get behind that. The issue with our country isn’t immigration though. Like you said, it’s handing over our money and future to the Westons, etc.
While we should be focused on that, we’re discussing immigration. This isn’t a new tactic and people fall for the bait so very easily
They aren’t villifiying the immigrants. They are villifiying the immigration policy. Too many too fast is unfair to immigrants as well as they may struggle to find good housing and jobs, things they were promised Canada would have. Many immigrants are also being exploited as cheap labour, sometimes being forced to ignore workplace safety or rules like breaks.
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I love this. “recession like”.
For when you want to criticize the economy big have nothing to back it up with.
Didn’t read the article eh? How 'bout this:
Seems like a lot to “back it up with,” as it were.
The last line kind of implies that immigrants had an active part in keeping things afloat.
I mean, they are? They are additional consumers in an economy increasingly being driven by consumer spending, where spending per person is falling. So, adding more people keeps things afloat even though each person is spending less.
The main issue is that high immigration is a bandaid (doesn’t address the issues causing spending to fall in the first place, and new spenders just get sucked into the same crappy economic climate once they get here as everyone else) and it comes with a host of other issues (e.g. increasing scarcity of high-quality, appropriate and affordable housing leading to further reduction in consumer spending).
Uhhh… Yeah. Sure. I wasn’t disagreeing, just highlighting it among the rest of the discussion.
It’s recession-like in the sense the GDP per capita is going down which means everyone is getting poorer… however the definition of a recession only considers GDP as a whole so technically the country is growing despite everyone getting poorer.
But… but… All this time Canadian news media have been feeding me rage bait about immigration being the root of all of Canada’s problems. I don’t know what to think! /s
Canada used immigration as economic equivalent of taking methamphetamine and painkillers to get things done, instead of eating right, exercising well and seeing a doctor. Yes, it works in the short term, but it’s really only kicking a problem down the road and making it worse when it’s too big to ignore.
We got here because we decided it was more important to give tax cuts to the rich and mortgage the futures of the poor, and when we ran out of poor people to strip-mine, we imported more, and it looks like we’re going to continue to elect governments that will twist themselves into knots trying to not get the rich to pay their fair share.
If there’s any consolation, it’s that we’re not alone among western countries that have snorted the neoliberal line, but we are one of the most vulnerable because we have precious little that anyone wants, outside of oil, and when that wobbles all that we have left is selling houses to each other. At least the Americans and Europeans have industries.
Rich pay their fair share?? That’s so backwards. Canada was created to transfer value from natural and human resources TO the wealthy and powerful. That’s what colonialism is. This isn’t some new thing, this is how it has been since the beginning, and it’s never ever ever changed. Canada exists to exploit the vulnerable.
Yes yes… The vilification of immigrants is different THIS time.
I said we’re strip-mining immigrants for value. I’m not vilifying immigrants, I’m vilifying a system that treats people like a resource to be exploited.
I’d be totally fine with high levels of immigration if it came with investment in infrastructure. But it doesn’t and the reason it doesn’t is because we’re using immigration instead of investment because we’re bringing people in to avoid having to have an adult conversation about taxes.
Immigration because it’s the right thing to do? Sure. Immigration because Galen Weston doesn’t want to pay workers a fair wage, nor pay more in taxes? Nope.
Sure, I can get behind that. The issue with our country isn’t immigration though. Like you said, it’s handing over our money and future to the Westons, etc. While we should be focused on that, we’re discussing immigration. This isn’t a new tactic and people fall for the bait so very easily
They aren’t villifiying the immigrants. They are villifiying the immigration policy. Too many too fast is unfair to immigrants as well as they may struggle to find good housing and jobs, things they were promised Canada would have. Many immigrants are also being exploited as cheap labour, sometimes being forced to ignore workplace safety or rules like breaks.
Damn Canada, you really are twinning with Australia right now…