SURVEY: Canadians Feel Worse About Finances Now Than In 2008 Financial Crisis

Month after month, inflation outstrips wage growth, meaning Canadians are falling further and further behind. Continued tax increases make things even worse.

According to a Nanos Research survey conducted for Bloomberg News, the number of Canadians who say their finances are worsening is larger now than during the global financial crisis.

47% of Canadians say their finances weakened during the past year, while just 13%  say their finances have strengthened.

That 47% figure is higher than during both the 2008 financial crisis – when the survey first started being conducted – and worse than during the massive economic contraction in the first half of 2020 when lockdowns became widespread.

The numbers don’t lie

The Liberal government can spin things all they want, but the numbers don’t lie.

Month after month, inflation is outstripping wage growth.

Thus, Canadians are falling further and further behind.

In real terms, our country is becoming poorer with each passing day.

Population growth and inflation itself generates the appearance of ‘economic growth,’ but that is meaningless when it comes to the actual lived experiences of Canadians.

If Canada somehow doubled our population in a month, the economy would certainly be ‘bigger,’ but every individual Canadian would be so much worse off.

Likewise with our rapidly-inflated money supply.

Sure, there is ‘more money’ in the system, but each monetary unit is worth less.

A government can only distract people with word games for so long before the reality of a weakening economy becomes undeniable, and Canada has certainty reached that point.

Desperately casting blame

With attempts to gaslight Canadians on the economic reality we see around us having failed, both the Liberals & the NDP are now desperately trying to cast blame elsewhere.

You already certainly know that Liberal-NDP policies have contributed to higher inflation, with their hostility towards the energy sector driving down potential supply, their carbon tax driving up the price of everything, and their unrestrained spending – enabled by the Bank of Canada – weakening the value of our money.

Yet, rather than take responsibility for the outcome of their policies, the Liberals & NDP are trying to blame ‘greed.’

They are especially zealous in targeting grocery chains and the oil & gas sector for supposed ‘price gouging.’

But those claims are totally ignorant.

With prices surging everywhere, grocery stores have much higher input costs. Thus, they must raise prices to stay profitable.

Focusing on the raw profit number is meaningless when everything is inflating in price. By looking at the profit margin, we can see that rising food prices aren’t about supposed ‘greedflation’ as noted in a recent Financial Post column:

“The Retail Council said that in 2021, the amount of total cents the grocers made on each dollar was in the normal range. Loblaw’s total profit margin last year was 3.6 per cent, Empire’s was 2.5 per cent and Metro’s 4.7 per cent, RCC said.

“These are all within, or very close to, the historical norms for the grocery industry of profits in the 2.5 per cent to 4.5 per cent range (which is one of the lowest in any industry and is dwarfed by the level of profitability of most food vendors),” Wasylyshen said in an email.”

Intuitively, we can understand this by considering how a modern store making a 20 cent profit on a $2 chocolate bar is the same as a store 80 years ago making a 2 cent profit on a 20 cent chocolate bar. The modern profit is way higher, but as a percentage it is the same. Was the modern store being more ‘greedy’ than the store in the past?

Of course not.

Trudeau & Singh offer economic ignorance because they don’t have anything else. If people actually realized the connection between higher prices and the policies of the Liberal-NDP Pact, they would want Trudeau & Singh voted out of power ASAP.

Spencer Fernando

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