It’s almost as if the Trudeau government isn’t telling the truth…
With Bill Morneau heavily hyping ‘wage gains’ based on the Statistics Canada payrolls survey (which shows wages rising at 3% this year), the Liberals are trying to make it seem that their economic policies are working out.
However, a closer look reveals that’s not the case at all, and Morneau’s attempt to hype up wage gains are pretty dubious.
That was pointed out Theophilos Argitis of Bloomberg, who noted that, far from “the strongest year of wage growth in close to a decade,” three other measures of wage growth – labour force survey data, national accounts data, and Stats Canada productivity data – show wage gains of 2.2%, 2%, and 2.5% respectively, all below the number Morneau is trying to focus everybody on.
Additionally, when all those numbers are taken into account through the Bank of Canada ‘Wage-Common’, and the Wage-Common is adjusted for inflation, there has in fact been ZERO real wage growth in 2018. In 2017, wage growth was under 1%, and in 2016 it was again ZERO. Under the Trudeau government, real wage growth is far below the average under the Harper government.
This is no real surprise. Trudeau is inefficiently pumping tons of taxpayer money into the economy through deficit spending, while imposing new taxes on Canadians. That can certainly make it seem like wages are rising, but the new taxes take all of that away.
This also explains why the government is so out of touch with Canadians. They keep saying how great the economy is, while almost nobody in Canada is actually feeling that. And with real wage growth totally stagnant, that feeling of being stuck is 100% justified.
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