Sunday, 17 July 2016

Canadian Job Market Has Not Recovered From 2008 Recession.

So says the OECD but what do they know?  It's sunny ways here in Canada or haven't they heard? Our out-to-lunch (and seemingly always out of the country) PM says so.

Besides, we're importing even more immigrants this year and the years to come.  True, they're mostly the C and D students of the developing world along with illiterate-in-their-own-language refugees and the useless "sponsored" relatives of immigrants.  But unlike the previous waves of immigrants who have failed to provide any real economic benefits to the country these ones are different and will create the jobs that will put us back on track because of neoclassical economics and reasons, I guess.

Monday, 11 July 2016

Immigrants Now Shun Ontario.

Looks like immigrants don't build economies after all.

Who'd of thunk?

Were that assumption true Ontario wouldn't be in the mess it's in.  For decades Ontario has been receiving the lion’s share of immigrants.  Based on the assumptions of immigration proponents Ontario’s economy should be booming thanks to all the jobs immigrants have created and economic activity they generate but it turns out that's not the case.  Today Ontario carries a considerable debt burden and is now a “have not” province when at one time it was the economic engine of the country sending more tax dollars to Ottawa than it received.  Decades of mass immigration to the province has failed to stave off Ontario’s economic decline and now even immigrants are avoiding it to go be a burden somewhere else in the country I imagine.

Using immigration to propel population growth only makes sense when it was essential to build a strong domestic market for domestically made goods, i.e. create a support base for a manufacturing sector and the relatively high paying jobs it provides.  But in today's globalized world a strong domestic market is not necessary for a Canadian company to compete internationally.  All we're doing now is growing a population that buys goods made elsewhere.  They do increase demand for services but is a service based economy better off than one that has a strong manufacturing sector?

Immigrants shunning Ontario should be seen as a canary in the coal mine to politicians and economists but it won't.  We have to ask ourselves where the hell in Canada are they going to go? Are they going to B.C. to sell real-estate to unscrupulous, parasitic Chinese multimillionaires with more money than scruples?  Are they going to dig up dirty oil or herd cattle in Alberta?  Are they going to go dig up potash in Saskatchewan or go fishing in Newfoundland?  Because all they seem to be doing here in Ontario is provide demand for the housing market doing whatever the hell it is they do to make their monthly mortgage payments which I'm positive the powers that be know they won't be able to afford once interest rates increase.