2023-07-14 04:00:00
Inflation. Stagflation. Reduflation. Multiple interest rate hikes. Housing crisis. Explosion of prices in the rental and real estate markets. We have not finished picking up the broken pots on the dark side of the pandemic.
In addition to this deadly pandemic, it is as if, for those whose greed is bewildering, the loss of our societal landmarks had given them the signal to take advantage of it as quickly as possible to maximize their own profits.
Even for needs as essential as food and decent housing, the costs have gone up and are still going up, scandalously. Don’t throw any more. The stuffing turkey yard, so we, is full.
But beware. This “we” is generic. It goes without saying that he does not understand the minority of those who, already well off, manage to maintain their attractive lifestyle.
For the majority, in this very bad farce, how many Canadians and Quebecers, before the pandemic, were first trapped by ridiculously low interest rates? The illusion of indebtedness “at a low price”.
The result was in keeping. Such low rates have pushed up the indebtedness of many households and single people. Property prices have also risen accordingly.
With rates at the floor and the famous variable rate that we were sworn to be eternally more advantageous, why not buy a house, since they are expensive, well above your true means? Whoops.
Not an exact science…
Anyway, as economists and bankers tell us, unemployment is minimal. Households, deprived of leisure during the pandemic, saved more. A seductive but misleading refrain.
In short, when an economist or a banker tells you that his profession is not “exact science”, please believe him. We knew, however, that the perfect storm was brewing. In the midst of an already gripping pandemic, the denial was nonetheless appealing.
Then came a big flash in the sky. Eighteen months ago, the Bank of Canada, seeing inflation picking up speed, raised its key rate. The first increase of a long list which, this week, brings us to 5%.
Since then, the collateral damage of this laboratory economy – welcome to capitalism 101 – has been felt by a majority of people. To varying degrees, of course.
This does not prevent economists and bankers from discussing it in a completely detached way. They do not suffer from what is happening. No one has seen a banker ring the doorbell of a food bank.
The storm hits hard
From the truly middle class, to workers and freelancers on limited incomes, to people on welfare – yes, they still exist – or elderly without pension funds, this perfect storm is hitting hard.
It also hits the 40% of Quebec tenants of all ages, including 65% in Montreal. It strikes single mothers and people living alone.
This crazy inflation undermines mental and physical health. Consecutive increases in interest rates inflate debt. The famous “it’s going to be fine”, he went to hide where?
It seems that the important thing, the real thing, is to reduce the wealth gap between Quebec and Ontario. In the current storm, many Quebecers would be content to be able to reduce their wealth gap with themselves before the pandemic.
Meanwhile, sorcerer’s apprentices in ties are waltzing. At the very top, they juggle the economy and, in doing so, our lives. Not “exact science”, they say. Quite an understatement.
You’ll tell it in a food bank line or at the door of a licensed insolvency trustee’s office.
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#turkeys #stuffing #us..