affordability

Tuesday May 17, 2022

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday May 17, 2022

Ontario NDP plan to run deficits for 6 years and cancel gas tax cut

May 10, 2022

Ontario’s New Democrats are pledging to run larger deficits than the Progressive Conservatives and Liberals if elected and would likely not balance the budget for six years, but the party is eyeing some cost savings from cancelling a gas tax cut.

That pledge is expected to save $600 million in the first year by reversing the Progressive Conservative government’s move to reduce the provincial portion of the gas tax by 5.7 cents a litre for six months starting July 1.

Catherine Fife, who has served as the NDP’s finance critic, presented the costing Sunday and acknowledged the high cost of living, including rising gas prices that have topped $2 a litre, but said the temporary cut from the Tories is just a “gimmick.”

“We are looking for a long-term, sustainable strategy to alleviate gas prices, but also to stabilize,” she said, pointing to the party’s promise to regulate gas prices.

April 27, 2022

“When I’m talking about these things at the door, people say, ‘Well, why isn’t the government addressing the core issue, instead of, you know, $12 a month or covering the cost of half of a gas tank?”‘

Liberal Leader Steven Del Duca said the promise means the NDP “is abandoning the middle class.”

The Liberals have not promised to cancel the planned cut and NDP Leader Andrea Horwath tied them and the Progressive Conservatives together in a tweet suggesting the money is better spent on public services.

“(Progressive Conservative Leader Doug) Ford wants to take $600M from hospitals and schools to line the pockets of his big gas buddies,” she wrote. “Now Del Duca wants in. I guess they’ve got buddies in common.”

New sources of revenue in the NDP costing released today include gaining $$1.9 billion by year three from raising the capital gains inclusion rate from 50 to 100 per cent on corporations, except for small businesses, and people with a net worth of over $3 million — with a primary residence exemption in place. (CBC) 

 

Wednesday May 10, 2022

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday May 10, 2022

As cost of living soars, affordability becomes top Ontario election issue

August 14, 2014

In every Ontario election poll that’s publicly available, the number one concern of voters is the rising cost of living. 

Affordability has rocketed past the perennial top issues of health — even after two years of a global pandemic — and jobs, with the unemployment rate at record lows. 

While the Ontario party leaders are often talking on the campaign trail about making life more affordable, it’s a wonder that they’re not hammering the issue even harder, given how strongly it’s resonating with voters.

“The smart politicians won’t just talk about [the cost of living] as an issue, they will understand it’s a character test,” said Greg Lyle, a veteran pollster and president of Innovative Research Group.

Wednesday November 20, 2019

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday November 20, 2019

Why affordability is (was) dominating Canada’s election campaign

(Article published 6 weeks before editorial cartoon was printed)

September 19, 2019

Canada’s political party leaders are making affordability the central talking point of their election campaigns, rolling out targeted measures to alleviate the financial strain besetting voters.

Though broad economic data show the nation’s economy is humming along, Canadians are still feeling tight on cash. The worsening global outlook and unprecedented policy uncertainty are adding to the apprehension.

Liberal Leader Justin Trudeau and Conservative Leader Andrew Scheer, along with the leaders of smaller parties are seeking to parlay that stress into votes as the clock winds down on the Oct. 21 election, by promising a slew of tax cuts and other measures to make life more affordable.

“Politicians are putting their finger on something, some form of financial anxiety about rising costs, or concerns about future rising costs, or future standard of living,” said Jennifer Robson, associate professor of political management at Carleton University in Ottawa.

Here’s why consumers are feeling pinched.

It’s old news that owning a home in Canada’s biggest cities has become an almost impossible goal for much of the middle class. Skyrocketing prices in recent years pushed potential buyers to the sidelines. New mortgage lending rules, so-called stress tests introduced by federal regulators in 2017, put ownership even further out of reach for many.

September 12, 2019

Toronto and Vancouver are easily Canada’s two main cities where residents are struggling to find an affordable place to live. The average selling price for a single-family home in Vancouver was $1.51 million in September, and $1.1 million in Toronto. Renting in those cities is no easy feat, either, as low vacancy rates have pushed up prices for accommodation.

Elevated real estate prices are the main driver of the country’s record household debt ratios, now the highest in the Group of Seven. Buyers took out larger and larger mortgages as the housing market heated up, even as incomes failed to keep pace. As a result, household savings rates are hovering near the lowest in decades, and the debt service ratio — which measures the share of disposable income paid toward principal and interest — climbed to a record in the second quarter.

While overall price inflation in Canada has been relatively benign, shoppers have experienced sticker shock on many basics. Prices for fruits and vegetables jumped as much as 60 per cent in the past decade, according to Statistics Canada. Child-care and tuition costs rose upwards of 35 per cent, and public transit prices ballooned by 50 per cent.

To top it all off, wages after accounting for inflation have remained relatively flat, even as costs for rent and basic goods increased. A puzzle for many economists and policy-makers is why unemployment is hovering near record lows, yet incomes are struggling to pick up. (Hamilton Spectator)