More and More Canadians Struggling to Get By

Patrick Gossage • October 16, 2023

You know that the number of Canadians crushed by rising costs is becoming a national crisis when both military families and auto workers complain of living pay cheque to pay cheque, and when 40 percent of post-secondary graduates are leaving high-cost Toronto in large numbers because they can’t afford to live there. The phenomenon of the graduate living in his or her parent’s basement because they can’t afford rent is used regularly by the federal opposition to shame the federal government who are finally trying to do something about unaffordability that affects nearly everyone.

Unaffected of course are the wealthiest households (top 20 percent) who account for more than two-thirds (67.9 percent) of net worth at the end of 2022. These are the corporate titans who are the constant butt of the NDP who continue to call for a wealth tax to even out glaring inequality. It was interesting to hear UNIFOR auto workers leadership and strikers refer to the huge salaries of automobile executives as a reason to give workers more. And up to present the union has been successful in bringing workers back to middle class wages. 


The huge profits of the major grocery chains and the over generous salaries of their executives has been a recurring theme in recent federal politics. And recently a large survey on grocery buying habits in a high price scenario has nearly half sacrificing nutritional value for price. Sixty-three percent are “worried that compromising on nutrition due to high prices may have adverse long-term effects of their health”. This is a shocking finding indeed. 


Canadians appear to be sacrificing a lot of extras to keep their mortgages out of arrears as many monthly payments have doubled with rising interest rates. Power of sale rates in Toronto are up marginally. But both renters and mortgage holders are struggling to meet higher costs. One Angus Reid survey showed that a year ago last June one-in-five (19 percent) renters reported it was very difficult to meet rising costs, now one-quarter (24 percent) say the same. The proportion of homeowners who find their mortgage difficult to manage has risen from one-third (34 percent) to 45 percent! 


As costs of basics have risen, many Canadians have used credit to keep up. Overall consumer debt has hit a record high in Canada, and any further rate increases from the Bank of Canada would put pressure on Canadians holding credit card balances and other loans. Already, one-quarter (26 percent) say their debt is a major source of stress for them. Two-in-five (42 percent) worry about their debt in a more minor way. This figure is higher among mortgage holders who 30 percent say is a major source of stress.


The most recent Bank of Canada rate hike to 5 percent means more bad news according to a July Angus Reid survey: “Currently,  two-in-five (37 percent) mortgage holders are having a difficult time making their payments. Among this group, nine-in-ten say this latest rate increase will further exacerbate this. Further, among those who say their payments are currently “manageable”, a majority (60 percent) say that this decision will negatively affect their ability to keep payments in this comfortable zone going forward.

In October a Leger poll of young Canadians painted a bleak picture of their particular struggles. The situation is getting worse with each passing year: Generation Z (born 1997 onwards) and millennials (born between 1981 and 1996) lack confidence in the future,” the report stated. It found half of these young Canadians living pay cheque to pay cheque. The rising cost of living is pressing on young Canadians’ minds even more than last year: 48 percent said they feel the added costs on the regular payment of their credit card or bills, compared to 40 percent in 2022. Around 72 percent of renters said their rent takes up too much of their expenses and 81 percent said they’re renting because they’re “unable to buy property.” Another 67 percent said they don’t think they’ll be able to buy property in the next few years, with 68 percent of youth living with family stating the same.


Young people generally find themselves  completely priced out of homes in the GTA. Wages have remained relatively stagnant while house prices have doubled since the 1990’s. Rental prices have more than doubled in the same time period. A, one-bedroom units in Toronto are hitting the market for more than $2,600, while two-bedroom apartments command more than $3,400 and three-bedroom units cost about $3,800, according to a report by rentals.ca and Urbanation. As of September 23 the average annual salary in Toronto is $57,550, which works out to be approximately $27.67 an hour. This is equivalent to $1,106 a week or $4,795 a month. Is it any wonder that the city is simply unaffordable for so many. 

The affordability crisis may be most exaggerated in Toronto, but it is felt nationally. According to a survey conducted by Abacus Data in July, the rising cost of living is far and away the top concern for Canadians, while housing affordability now rivals health care as a priority. Recent data from Environics also shows that Canadians are markedly more worried about household debt than they were a decade ago — with the biggest spike in debt anxiety reported among those aged 18 to 44. 


In 2012, Justin Trudeau mused on a theme which helped carry him to victory three years later and is still a touchstone of Liberal strategy. "Those who think the middle class is thriving in this country should spend more time with their fellow citizens," Trudeau wrote in October 2012, shortly after launching his bid for the Liberal leadership. "[The] squeezing of the Canadian middle class does not need to be explained to those who live it every day." Clearly the kind of anxiety revealed is hardest on the so-called middle class who have the highest consumption rates most affected by rising prices. And at the lower end many still have mortgages. When Trudeau or ministers talk about the middle class and  “those working hard to join it” the slogane becomes more age inclusive   There is now a powerful Cabinet Committee chaired by the Deputy PM Chrystia Freeland which targets Canada’s principal ailments. It is a, “Ministerial Working Group on the Middle Class, Economy and Housing - Provides strategic leadership in considering measures to support the middle class and those working hard to join it, to make life more affordable, and to remove barriers to building more homes, faster to drive down the cost of housing”. An old wrapping for new critical problems. 


All this anxiety which more and more Canadians feel about the economy is a major challenge for the solution-minded Liberal team. The leader of the Opposition has many Canadians believing that unaffordability is all Trudeau’s doing with rising interest rates (not under the government’s control) and the Liberal gas tax. The die is cast for the next election for sure and the government will be survive or fall on how successfully it addresses what is a widespread and deeply felt economic crisis. 

Patrick Gossage Insider Political Views

Immigration – Too much of a Good Thing

By Patrick Gossage • September 17, 2025
Welcoming newcomers, especially those fleeing wars, has been a widely accepted Canadian virtue. Now, after 25 years of a very open door. there is increasing evidence that we have too much of a good thing. And admittedly, it has been pre-PM Carney Liberal policies which have us in this situation. Where we are now was exemplified by PM Carney recently at the caucus retreat in Edmonton where said recent levels have not been "sustainable" and a more "focused" approach is required. "It's clear that we must improve our overall immigration policies," he said. It had been easy to be caught up in Justin Trudeau’s unabashed enthusiasm for high immigration levels exemplified by his warm personal welcome of the first Syrian refugees in December, 2015. On the fifth anniversary of his memorable event he happily announced: “In the years since, the Government of Canada has worked closely with Canadians, the business community, and civil society to resettle nearly 73,000 Syrian refugees in more than 350 communities across the country.” Few questioned our generosity and thousands of ordinary Canadians sponsored families. But opening our doors wide soon got out of control. In 2021, more than 8.3 million people, or almost one-quarter (23.0%) of the population, were, or had been, a landed immigrant. Canada’s population grew from 38 million to 41.5 million, representing the highest annual population growth rate since the post-war boom of 1957. Immigration now accounts for virtually all of Canada’s net labour force growth. It then became of public concern that temporary residents, including record numbers of temporary workers and foreign students accounted for 3 million of that number. In total, since 2015 we admitted 15 million temporary foreign workers in agriculture, hospitality and some manufacturing and processing jobs. They were seen to be exploited with lower wages and few rights. Foreign students with limits on hours they could work swelled these huge numbers. Inevitably, public support for high immigration levels dramatically flipped, where 58% of Canadians now believe there are too many immigrants being admitted to Canada. An Environics Poll in 2024 showed that f or the first time in a quarter century, a clear majority of Canadians say there is too much immigration, with this view strengthening considerably for the second consecutive year . Canadians’ express concerns about the arrival of so many newcomers contributing to the country’s problems with housing availability and affordability; this view is much more prominent than a year ago. Immigrants placing pressure on public finances, taking jobs from other Canadians, over-population, and insufficient screening are less prominent. Along with rising concerns about immigration levels, an increasing number of Canadians are expressing doubts about who is being admitted to the country and how well they are integrating into Canadian society. The new Carney government took action, gradually reducing permanent resident admissions to 380,000 in 2026 and 365,000 in 2027; introducing caps for temporary residents, including students and workers at 673,650 in 2025, a notable decrease in new international student admissions with only 163,000 new study permits projected for early 2025. This has led to serious financial shortfalls in many post-secondary institutions. There will be a decline in the overall Canadian population in 2025 and 2026 due to the projected outflows of temporary residents.The number of new temporary residents arriving in the country — made up of international students, foreign workers and refugee claimants — declined in the first six months of 2025, compared to the same period last year. These immigration statistics have been closely watched, with critics arguing the Liberal government’s high immigration intake has contributed to Canada’s runaway population growth and is straining the housing market and health-care system. In response, the government slashed the 2025 intakes of new permanent residents by 21 per cent to 395,000; new study permit holders by 10 per cent to 305,900; and new work permit holders by 16 per cent to 367,750. Accommodating the needs of refugees for resettlement and shelter has become a major issue and embarrassment. In the summer of 2023 many asylum seekers in Toronto ended up sleeping on the street. What a way to welcome them to Canada! Since September 2021, the number of refugee claimants housed in Toronto shelters has increased more than tenfold, from 530 per night to a peak of almost 6,500 per night by August 2024. Recently there were about 3,500 refugee claimants in the system, about 40 per cent of all clients. The mayor recently wrote a letter warning that Carney’s government had agreed to cover only 26 per cent of Toronto’s estimated costs for housing asylum seekers in its shelter system this year. Refugees are a federal responsibility, yet reduction in federal support leaves the municipality $107 million short. We still welcome asylum claimants unreservedly. From January-June 2015 over 57,000. The leader of the Official Opposition, Pierre Poilievre, is now determined to make immigration a major political issue. He is calling for a tougher stance, saying he wants to see "very hard caps" on the number of newcomers allowed into the country. Poilievre says the country has struggled to integrate newcomers and he wants to see more people leaving than coming in "while we catch up." "We have millions of people whose permits will expire over the next couple of years, and many of them will leave," he said. "We need more people leaving than coming for the next couple of years. He would scrap the Temporary Foreign workers program altogether. BC Premier David Eby also calls for the end of Canada's temporary foreign worker program — blaming Ottawa's flawed immigration policies for filling up homeless shelters and food banks. "The temporary foreign worker program is not working. It should be cancelled or significantly reformed," Eby said. "We can't have an immigration system that fills up our homeless shelters and our food banks. We can't have an immigration system that outpaces our ability to build schools and housing. And we can't have an immigration program that results in high youth unemployment,“ Despite these concerns, there is a bedrock of strong support for immigration which was manifested recently in Torontonians where over 150 teachers,.labour union members and families organized a noisy counter demonstration against about 50 right wing flag waving Canada Fist anti-immigrant demonstrators. They chanted “there is no space for hate at Christie Pits”, the site of the clash which led to many arrests. Torontonians enjoy the benefits of living, the world’s most multicultural city with its amazing variety of foods and cultures, and daily evidence from immigrants that their children are doing very well, thank you. But we await the end of the hopelessness that is apparently part of the lives of so many new arrivals, particularly refugees, and the needless exploitation of many other newcomers in menial and low paying jobs..

Deciphering the Canada/US tariff wars

By Patrick Gossage • August 12, 2025
1. Negatives - The sad truth about missing the August 1 deadline: Trump on July 31, 2025: ”We haven’t spoken to Canada today. He’s called.” Carney could not get through! Obviously, the President of Mexico did and got a 90 day reprieve. He may speak with Carney this week but clearly the PM’s relationship isn’t what we thought. Trump:: ”(Canda} has been very poorly led….Canda has treated US farmers “very badly” (our apparently untouchable dairy and poultry supply management regime remains a major irritant.). He still believes there is a “huge flow of fentanyl from Canada to the US that has to be stopped.” Trump said earlier he hasn’t “had “a lot of luck with Canada,” and reaching a deal wasn’t a priority for his administration. In addition, Trump intensified his trade war with Canada with A35% tariff just ahead of the August 1 deadline for an agreement, saying it would be "very hard" to make a deal with Canada after it gave its support to Palestinian statehood. “ Ford among others has called all along for a tougher approach and dollar for dollar reciprocal tariffs on US goods coming to Canda – which the White House dislikes claiming only Canada and China are imposing these tariffs. A recent Angus Reid poll suggests the proportion of those advising the PM and his team to “play hardball” has increased, from 63 to 69 per cent of the population compared to mid-July. Recently Carney has prepared us to accept there will be no deal without tariffs. In March he predicted “It is clear that the United States is no longer a reliable partner. It is possible that, with comprehensive negotiations, we will be able to restore some trust, but there will be no turning back,” On August 5 he said the focus now will be to preserve and reinforce CUSMA ahead of next year’s negotiations, adding “There’s a bigger picture there. Sounds like buying time? One journalist’s – Matt Guerny’sjudgment on Carney’s performance: “…the central conceit of the federal election three months ago was that we faced an unprecedented crisis requiring an unprecedented response…The Liberals made the case — and voters agreed — that Carney was the man to lead Canada’s emergency effort….But I will blame Carney for not doing the things that he can do, as fast as he can do them, and that very much includes moving fast enough to harden this country so that we can better withstand geopolitical and economic threats … threats like an erratic and unpredictable U.S. president.”. 2. Positives Government’s plan B: Carney - “Canada, we are in charge of our future. We can build a strong economy that doesn't depend on the United States. We can be masters in our own house.” Bill C5 envisions huge national infrastructure projects: “It’s time to unite this country and invest in nation-building infrastructure on a scale not seen in generations. Major nation-building projects will connect Canada and grow the economy in ways that last for generations, such as the Port of Churchill, hydrogen production in Edmonton, seizing vast solar potential in Cowessess, high-speed rail that starts with Windsor to Québec City, and a trade corridor to Grays Bay in Nunavut, amongst others.” However, we are still wiring for a major project to be green lit under the Build Canada Act. 50% Steel and Aluminum tariffs backfiring: GM and Ford announced billion-dollar losses and Ford’s best-selling aluminum body F150 pickup severely affected by aluminum tariffs. This noted by US Treasury Secretary Scott Bissent: “We will be negotiating with Canada on those.” Canadians deciding to not travel to US -and US alcohol being taken off Liquor Board shelves in provinces (except Sask and Alberta having an impact. This is "worse than tariffs", the boss of Jack Daniel's maker Brown-Forman says. Statistics Canada reporting a "steep decline" in Canadian travel to the U.S., particularly by land, and a -notable, drop in air travel. Big US coverage of impact on business in affected states. Leverage of Canadian rare earths and energy: Canada is a major energy exporter to the United States, particularly for oil, natural gas, and electricity. Canada supplies a significant portion of the US's crude oil, natural gas, and electricity imports. Specifically, Canada provides 60% of the crude oil and close to 100% of the natural gas imported by the U.S. Additionally, Canada supplies 85% of the electricity imported by the U.S. Canadian reciprocal counter tariffs: On March 3 2025 Trudeau announced a slew of retaliatory tariffs on US consumer and other goods entering Canada: Outlining the tiny amounts of Fentanyl crossing the border and investments in enhancing border security, he added : “Canada will not let this unjustified decision go unanswered. Should American tariffs come into effect tonight, Canada will, effective tomorrow, respond with 25 per cent tariffs against $155 billion of American goods – starting with tariffs on $30 billion worth of goods immediately, and tariffs on the remaining $125 billion on American products in 21 days’ time. Our tariffs will remain in place until the U.S. trade action is withdrawn.” August 4 th Carney said he may consider removing some. They have had an immediate impact on Canadian households. Tariffs hitting US consumers Proctor and Gamble announced last week it would raise prices on a wide range of consumer goods. Other manufacturers, from Porsche to Nestle to Adidas have announced the same thing. As have Walmart and Amazon which has raised prices on over 1200 items. Andrew Coyne on one sector Trump cannot control: “The Markets may be nevertheless prove to be Mr. Trump’s most implacable opponents.”
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