Weekly Newsletter – December 22, 2023 – Hope!

As the year draws to a close, we eagerly anticipate 2024 with renewed hope. Undoubtedly, the past year and most of 2022 were marked by upheaval, including the Russian-Ukraine conflict and the terrorist attacks on Israel by Hamas. In North America, three individuals captured headlines—Elon Musk (once again), Donald Trump (also making a return), and Taylor Swift. Thank you, Taylor. Your contributions are remarkable, not only for bringing joy to people but also for generating numerous job opportunities! On the domestic front, Canada's headlines were dominated by issues such as homelessness, drug and mental health addiction, the housing crisis, and inflation. Unfortunately, Taylor Swift wasn't able to swoop in and save the day, although our Prime Minister did invite her to bring her Era's Tour to Canada—a brilliant move.

The years 2022 and 2023 witnessed inflation rates not seen since the 1980s, leading to subsequent interest rate hikes. These increases eventually brought Canada's inflation and growth to a grinding halt in late 2023. Presently, our inflation rate stands at 3.1%, predominantly driven by rent and housing costs (5.9%). Consequently, we face an unprecedented housing crisis. In fact, we're constructing the same number of homes in Canada today as we did back in 1972 when our population was a mere 22 million. The combination of immigration and the natural birth rate has now propelled our population growth to 3.2%, a surge unmatched since post-World War II and double the pre-pandemic level.

If we factor in this significant immigration influx and apply it to the inflation and growth statistics, it becomes evident that Canada's inflation rate is already at 2%, while our growth rate has contracted by 4.4% in the third quarter. Such a decline in growth has only been witnessed during recessions in Canada. Get ready for more government spending because this what they think they should do to offset a slowdown.

Therefore, my hope for 2024 is that we recalibrate immigration to a more manageable pace, eliminate rent controls to facilitate more multifamily constructions, decrease government levies and taxes on new constructions to encourage increased home building, abolish the carbon tax, and champion our abundant resource industries in Canada. There's no point in inviting people to Canada without providing them the opportunity to prosper!