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

By Patrick Gossage July 7, 2025
When I was at university in the sixties, it was easy to love being Canadian. Patriotism was easy in the era of Pearson, peacekeeping and his Nobel Prize. He introduced defining landmark social programs like the Canada Pension Plan and universal health care. He also was crucial in launching the new Canadian flag, promoting bilingualism, and fostering a more inclusive immigration policy. His government got into the business of Canadian cultural promotion with the establishment of Telefilm Canada in 1967 to fund Canadian filmmakers. (The crown corporation, the National Film Board, was established in 1939.) The Pearson era went out with a proud Canadian bang at Expo67. Canada was prosperous, our identities, either largely British and French, were secure. The writer and philosopher George Grant, put it this way: “English speaking Canadians have been called a dull and costive lot. In these dynamic days, such qualities are particularly unattractive to the chic. Yet our stodginess has made us a society of greater simplicity, formality, and perhaps even innocence than the people to the south.” This is the society in which most anglo seniors today grew up. Not chic, looking with some envy at the glamour of Hollywood and Broadway, but modest and content. But the seeds of change were there. In Toronto. Italian and Portuguese laborers were being brought in to build subways and suburbs. Canada was about to add to the core French and English culture, and value assumptions far more diverse, and multicultural influences. Multiculturalism became official government policy in 1988. In his speech to the House of Commons, Trudeau stated that no singular culture could define Canada, and that the government accepted “the contention of other cultural communities that they, too, are essential elements in Canada.” A policy of multiculturalism was implemented to promote and respect cultural diversity, and to in fact fund ethnic efforts to preserve and develop their cultures within Canadian society, the opposite of the US “melting pot” objective. Section 27 of the Canadian Charter of Rights and Freedoms officially recognizes multiculturalism as a Canadian value. In a 1971 speech in Winnipeg to a Ukrainian audience, Trudeau said: “What could be more absurd than the concept of an “all Canadian boy or girl! “ Trudeau greatly enlarged the makeup of the body of immigrants by expanding the ‘family class’. In 1978 immigration act changes allowed new Canadians to sponsor their parents of any age. Those from less-developed nations found this particularly appealing. Trudeau senior’s major accomplishment which ensured the protection of all minority rights was the repatriation of our constitution woth the Charter of Rights and Freedoms Now In Canada, approximately 23.0% of the population are first-generation immigrants, meaning they were born outside of Canada. This figure represents the highest proportion of immigrants in Canada in 150 years and is the highest among G7 countries. Over half of our population are either of English or French heritage. The torch of openness to refugees and immigrants and “diversity is our strength” has been taken up by Justin Trudeau in a big way. He told the New York Times Magazine in October 2014 that Canada could be the “first post national state”. He added: “There is no core identity, no mainstream in Canada.” Many would argue that, yes, there is a core set of Canadian values. Often not recognized, they are regularly reflected in government policies. They set us apart from the United States, form part of our identity, and enrich our life experiences. Pearson and the Trudeaus have been instrumental in implementing Liberal values, ensuring equality of opportunity across the country and that no minority is trampled on. Foremost is universal publicly funded health care, whatever its problems. His son will be remembered for the Canadian Child benefit which today grants parents up to over $6,000 per child, which greatly reduced child poverty and $10 a day daycare. Justin Trudeau also launched publicly funded denticare and started a pharmacare program. Recipients of these programs obviously see them as essential parts of being Canadian. The generally shared values of Canadians include the importance of collective wellbeing, co-operation and social equality and a belief that active governments can improve our lives. Justin Trudeau’s self-declared “feminism” and his making cabinet one half women showed a dedication to equal rights for women which he tirelessly promoted. He was forever promoting the value of “diversity is our strength”. We genuinely welcome immigrants and show a high degree of tolerance for differences. Perhaps the best indication of this is the late seventies welcoming of over 60,000 Vietnamese boat people. As well, after 2015, over 44,000 government and privately sponsored Syrian refugees were settled and helped to establish themselves in Canada. Prime Minister Trudeau personally welcomed the first arrival in Toronto. While seemingly uncontrolled immigration of foreign students and refugees has become more controversial recently, it is accepted that we need immigrants, and the flow is now more rationally controlled. His father also ruled over a Canada that was very pro-Canadian and even anti American – not hard when the United States was immersed in the nightmare of Vietnam. He was well aware of the dangers signaled by George Grant in Lament for a Nation, which predicted the virtual integration of the Canadian and US economies. He established the Foreign Investment Review Agency to break the wholesale takeover of Canadian businesses by US firms. He established Petro Canada to get a window into the largely foreign owned oil and gas sector. And his government was very active in supporting and encouraging Canadian culture. The CRTC mandated Canadian content on our airwaves, spawning a healthy music industry. His son substantially increased funding for the public broadcaster CBC. Then in 1988 came a major shift in our identity and sovereignty. Prime Minister Mulroney wanted a free trade deal with the US and John Turner, the defeated Liberal leader, finally found his voice: “I will not let Brian Mulroney sell out our sovereignty. I will not let this great nation surrender its birthright. I will not let Brian Mulroney destroy a 120-year-old dream called Canada, and neither will Canadians”. But Turner lost, and a new deal sealed the situation we are in today with over 70% of our exports going stateside and Trump determined to wage economic warfare with a country he feels does not have a right to exist and should be the 51 st state: “Economically we have such power over Canada.” In fact, we have inadvertently given him “all the cards” as Trump likes to say. Turner might well say from the grave, “I told you so!” Sovereignty means more than building our own economy more independent of the United States. It means rebuilding the pride we have as Canadians and actually knowing and cherishing its values so different from those south of us. And this seems to be happening ironically, thanks to Trump’s trumpeting us as a 51 st state. Flags are everywhere and as we celebrate our 158 th birthday there is a new patriotism bursting out across the nation. The national anthem is being enthusiastically sung by audiences at all sorts of gatherings and performances. And worry as we may about the diverse cultures and beliefs of the hundreds and thousands of immigrant adults from every corner of the Globe, we know their children going to public schools will become knowledgeable, committed Canadians. There is a Canadian soul which will not be destroyed.
Doug Ford in a suit and tie is talking into a microphone
By Patrick Gossage June 11, 2025
Who is the is the real Doug Ford? Is it the smiling man walking beside Premier of Alberta Danielle Smith into the meeting of the Premiers with the PM intoning “love is in the air”(!) or the inept initiator of the Green Belt scandal which sold protected land to his developer friends – for which he apologized while reversing the order?
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