What is the largest contributor to inflation? Why, it’s rising mortgage costs... which are caused by rising rates... which are caused by inflation. The point is even clearer with population growth and housing. We are at record high levels of population growth, and extreme unaffordability for housing. That’s not just my opinion – the Globe and Mail and even the Wall Street Journal have discussed housing/immigration conundrum. High immigration is straining housing... so we need to build more... but we lack the employees... so we need more immigration. The solution is the problem?
But what’s the alternative? Surely cutting rates isn’t going to help inflation? Canada’s birthrate is among the lowest in the world (30% below replacement level) so we can’t just remove immigration? Have we boxed ourselves in completely? Or are our preconceptions preventing us from seeing a way out?