For years, Canada has become dramatically reliant on ever-increasing immigration levels, which is clearly a vulnerability for the economy. Unfortunately, most political leaders seem set on doubling-down on the same thinking.
A recent BNN Bloomberg article notes how Canada’s immigration numbers are down dramatically:
“The latest government data show Canada admitted 13,645 permanent residents in July, down 63 per cent from the same period last year as COVID-19 travel restrictions continue. July’s figures are in line with the nearly two-thirds drop between April and June, pouring cold water on hopes for a quick rebound.
Immigration had been one of the main catalysts of Canada’s economic growth before the pandemic, a driver that looks increasingly under threat. Immigration Minister Marco Mendicino unveiled targets in March for 341,000 permanent residents this year, but through the first seven months only 34 per cent of that number had been granted entry.”
A Royal Bank of Canada economist called it “worrisome,” and the article says “Lower immigration could strain urban housing markets and result in reduced funding for post-secondary institutions, RBC said in a report last month. It could also hamper innovation.”
What this really shows however is that Canada has become far too dependent on ever-increasing immigration.
Our housing markets (which are increasingly unaffordable for Canadian Citizens) should not be dependent on endless foreign buyers.
Our universities should be able to make ends meet based on Canadian students, not be dependent on foreign students.
And then there’s the whole idea of our economic growth being dependent on more and more immigration.
The fact is, that’s not real growth.
Economic growth only really matters if most people in the country are getting wealthier on a per capita basis. Any economy can ‘grow’ by bringing in more people, but that doesn’t mean people are actually doing better.
For example, before the CCP Virus pandemic, the US economy was growing about twice as fast as the Canadian economy, despite the US having a much lower rate of immigration (adjusted for population of course). So, the US was actually seeing per capita growth, while Canada was not. In fact, according to some statistics, Canadians have been getting poorer over all, as the low rate of growth was negative on a per-capita basis when accounting for population growth and inflation.
All of this shows that our corporate and political elites are still stuck in a frame of mind where they see immigration increases as some sort of miracle cure for the economy, rather than looking at how to make things better for the Citizens who are already within our borders.
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