National Economy

[YOWetal]

Originally Posted by Greetingsfromcanada

If they paused immigration, market rate asking rents would decline multiple hundred dollars per month. Same thing happened during covid. If the LPC want to win, the solution is staring them in the face. But they're likely too ideologically driven on immigration to do it

I absolutely think this is the right thing to do. But it's not simple either economically or politically.

Ecoonomically it's easy to see it over shooting. We are in a pretty strong downturn in some of the condo markets and it is the strong rental market keeping a lot of small landlords afloat. We might say too bad for them but if we get into a panic all bets are off and the mild recession we are enterring could become a massive one. These things cascade so unemployed construction workers stop eating out and unemployed waiters stop going to the salon. That can end up destroying a lot of economic output and make us all poorer.

Politically besides the risk above which given how hopeless it is for the Liberals seems like a risk worth taking politically, the drop in rental prices really only helps a small percentage of the population who are renters and who are moving in the next year. Current leases aren't going to fall unless there is a total crash. (I know a few people who negotiated rents down in April 2020 but it was rare) Meanwhile all the suburban boomers worry about their housing piggy bank going down in value and blame the Liberals.

As I said it's not easy. They absolutely should be trying something radical but seem totally oblivious to the cliff they are headed over.

[P'tit Renard]

Originally Posted by YOWetal

I absolutely think this is the right thing to do. But it's not simple either economically or politically.

Ecoonomically it's easy to see it over shooting. We are in a pretty strong downturn in some of the condo markets and it is the strong rental market keeping a lot of small landlords afloat. We might say too bad for them but if we get into a panic all bets are off and the mild recession we are enterring could become a massive one. These things cascade so unemployed construction workers stop eating out and unemployed waiters stop going to the salon. That can end up destroying a lot of economic output and make us all poorer.

Politically besides the risk above which given how hopeless it is for the Liberals seems like a risk worth taking politically, the drop in rental prices really only helps a small percentage of the population who are renters and who are moving in the next year. Current leases aren't going to fall unless there is a total crash. (I know a few people who negotiated rents down in April 2020 but it was rare) Meanwhile all the suburban boomers worry about their housing piggy bank going down in value and blame the Liberals.

As I said it's not easy. They absolutely should be trying something radical but seem totally oblivious to the cliff they are headed over.

So basically you've advocating JT's way of kicking the can down the road and keep the rental and asset bubble going, just to protect housing speculators and slumlords from real market forces, and socialize their losses.

The US housing crash may have caused short term pain, but their economy came out much stronger and resilient 15 years out. On the other hand, JT's Canada seems to be unwilling to let the free market correct itself, and in turn we're just cannibalising our economy and compromising our future even more.

[Loco101]

Originally Posted by P'tit Renard

So basically you've advocating JT's way of kicking the can down the road and keep the rental and asset bubble going, just to protect housing speculators and slumlords from real market forces, and socialize their losses.

The US housing crash may have caused short term pain, but their economy came out much stronger and resilient 15 years out. On the other hand, JT's Canada seems to be unwilling to let the free market correct itself, and in turn we're just cannibalising our economy and compromising our future even more.

Having just spent a few weeks in 5 different states, a couple poor ones and a few wealthy ones, I fail to see the US as being stronger economically. Sure the wealthier people are doing better but I'd say the bottom 2/3 are struggling quite a bit. I also wonder how much of their huge deficit spending is responsible for the good and bad there. Would Canada do better if our federal government went on a big spending spree like the US federal government?