With the Consumer Price Index decreasing but necessities such as food and shelter increasing, the Bank of Canada walks a very thin line that has no good outcome.
With real interest rates still being negative, the Bank of Canada is incentivizing businesses and people to still contribute to inflationary pressures which will create a cycle of more inflation and higher CPI.
Middle and upper-class Canadians have put money in assets which largely created the real estate bubble and lower-class Canadians are left to suffer, which will cause crime and socioeconomic issues to become engrained and labor shortages to increase as more people are not able to work low paying or normally unstable jobs.
The two outcomes for Canada’s future are to raise rates enough to break the economy or have the lower, middle class without assets to either move to a country with a sane cost of living or accept poverty.
Nathan McSween
Prince George
