Canada is experiencing its most severe decline in living standards in 40 years, according to a recent study by the Fraser Institute. The study highlights three significant periods of economic downturn: 1989, 2008, and today. Unlike previous recessions, Canada’s economy is not recovering, indicating deeper underlying issues.
Economic Stagnation and Wage Freeze
Since 2016, Canadian wages adjusted for inflation have remained flat. From 2019 onward, Canada has shown the worst economic growth among 50 developed countries. The country’s real GDP continues to drop, raising concerns about a potential U.S. recession, which could further impact Canada’s economy given the U.S. accounts for 75% of its exports. This stagnation suggests significant structural problems within the Canadian economy.
Rising Costs and Financial Strain
Inflation has significantly impacted Canadian households. Food prices have risen by 25% and energy costs by 30% since the pandemic, partly due to a new carbon tax. Provincial sales taxes of 13% to 15% add to the financial burden. These pressures have led to a 40% increase in bankruptcy filings last year, with nearly half of Canadians lacking emergency savings.
Heavy Tax Burden and Income Disparity
Middle-class families in Canada face the challenge of paying up to half their income in taxes. This, coupled with rising living costs, has created substantial economic strain. Canadian incomes are comparable to those in West Virginia, while house prices are akin to those in Los Angeles, making financial stability difficult for many.
Increased Crime and Public Discontent
The violent crime rate in Canada has risen by 40% since 2014, reflecting the social strain accompanying economic difficulties. Public sentiment is bleak, with a recent poll showing 70% of Canadians believe the country is broken. This sentiment is even stronger among younger Canadians, with 80% of those aged 18 to 34 sharing this view. Additionally, 42% of Canadians are considering moving to another country, highlighting widespread dissatisfaction.
Criticism of Political and Economic Policies
Source: https://theconservativeweekly.substack.com/p/canadas-economic-downturn-a-crisis
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