The left is infatuated with ＂affordable housing＂
Episode Stats
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178.99603
Summary
In this episode, we talk about the housing affordability crisis in Canada and how the federal government is to blame for it. We also talk about how the government is spending more than $1 Trillion a day on infrastructure, and how this is contributing to the problem of housing affordability.
Transcript
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Next up let's talk affordable housing. Leftist politicians are obsessed with affordable housing
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as a solution to Canada's unaffordable housing market. Take a listen.
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It hasn't been treated like the crisis it is. So what we're proposing is some concrete steps.
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Let's massively invest in housing as a way to create jobs locally in communities and as a way
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to ensure people have a place to call home. We want to see people have a place they can buy.
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We want to make sure that there's affordable rental and so what we're proposing is investing
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massively to create half a million new homes, investing in cooperatives, in not-for-profits,
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building apartments, building townhouses, building houses. We want to build massively as a way to
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recover out of this pandemic and a way to build forward for the future.
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For our audio only listeners that was federal NDP leader Jagmeet Singh talking about affordable housing
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in Canada. But he's not the only one who thinks that this is a solution to the housing affordability
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crisis. Under Prime Minister Justin Trudeau the Liberal plan also includes spending and I quote
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$2.7 billion over four years to build and preserve more affordable housing.
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But the problem is the government doesn't have money to pay for this. Either we're going to have
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to increase current taxes or we're going to have to add this onto the national credit card
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and ask taxpayers to pick up the tab plus interest down the line. Obviously either of these scenarios would
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exacerbate affordability in Canada. And just as a reminder, adding a tab to our future credit card
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bill really is not a good idea because Justin Trudeau has been doing that since the moment he got into
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office. He's already doubled the debt, the country's national debt has already surpassed $1 trillion
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and he adds over $144 million to the debt every single day. So remember at the beginning of the podcast
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when we read that clip from RBC Economics that said inflation is spurring a rate hike that should worry
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everybody? Yeah, Justin Trudeau's spending has a lot to do with that. What causes inflation?
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Government spending. In a nutshell, inflation went through the roof following Covid because during Covid
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Prime Minister Justin Trudeau's government spent well beyond its means historic levels of spending.
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Long story short, the Bank of Canada facilitated that spending spree by printing money.
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When there's more money in circulation without the economic growth to justify it,
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that's when inflation occurs. Now the main way that the Bank of Canada can curb inflation is through
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raising interest rates. And while this tool may be good at curbing inflation, it has other downsides
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as well. Obviously it will add fuel to the fire of the affordability crisis in Canada's housing market.
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And as you'll recall from the beginning of the show, RBC Economics stated that a one percentage point
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rate increase raises mortgage payments by more than $600 per month in Vancouver and $554 per month in
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Toronto. So while the federal government loves to say that they really are invested in this housing
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affordability crisis and they really care, clearly you have them to thank for your increased mortgage