Despite assurances that the Canadian middle class would be supported, more and more economic data shows that just the opposite is taking place.
Wage growth is at the lowest level in 20 years, and an even more disturbing fact could have severe implications for our economic future:
Pay raises are not keeping up with the rising cost of living.
According to Bloomberg, Canadian wage growth so far in 2017 is 1.12%, while the cost of living increase (inflation) is 2.05%.
This means Canadians are getting poorer.
The government will try to deny this. They will hope people just focus on the fact that wages are still going up (even though the “increase” is tiny.) But if everything costs 2% more, and you make just 1% more, then you are 1% poorer.
This is a clear indictment of the government’s economic policies, and raises serious questions about our economic future.
Things seem poised to get even worse, considering that the carbon tax will raise the cost of living even further, as everything from gasoline, food, clothing, and countless other items will become more expensive.
Meanwhile, the elites – who can easily afford a carbon tax and don’t work in industries that will be put out of business – continue to prosper, making money from connections to the expanding government and regulatory state. Once again, the rich get richer, and the poor get poorer.
Without a change in course, Canada’s middle class will continue getting squeezed, and Canadians will continue to fall further behind.