Continued weak wage growth means stagnation for millions of Canadians.
One of the most repeated trends in the Canadian economy is also one of the least-reported: Wage growth failing to keep up with inflation.
While GDP growth and jobs numbers are given a large amount of attention, very little discussion takes place of the fact that wage growth is often surpassed by the rate of inflation – meaning many people are actually becoming slightly poorer each month – even when it doesn’t look like it.
According to Stats Canada, wages grew 1.3% year-over-year in July. The inflation rate was reported at 1.2%. However, BNN notes that “the median inflation rate across CPI components, rose to 1.7 percent from 1.6 percent.”
This means that for millions of Canadians, the rise in prices increased more than the increase in wages. The practical result of this is that millions of people became a bit poorer in July.
Of course, this is rarely reported, because it would reveal the real stagnation at the core of our economy. We are watching good and secure jobs being eroded, replaced by more unstable and insecure work. Outside the bastions of the elitist economy (academia, government, banking, upper management), the economy is not working for most Canadians. The working-class and much of the middle class are being severely damaged by excessive regulations, debt, flawed trade policy, and high taxes.
The weak growth in wages and rise in prices surpassing that growth is clear evidence that our economy is in serious trouble behind the scenes. Until we can return to real and meaningful growth (not debt-based bubbles), regular Canadian workers and families will keep getting screwed over.
The elites want to hide their many failures behind political correctness, deception, and manipulation. We need to push back and spread the truth.
That’s why I write.
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