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alligator

Tuesday March 5, 2024

March 5, 2024 by Graeme MacKay

Despite falling inflation, the Bank of Canada is likely to keep interest rates steady, raising questions about an immediate drop in borrowing costs.

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday March 5, 2024

A Closer Look at the Bank of Canada’s Interest Rate Strategy

September 8, 2023

In his recent article Mark Rendell delves into the Bank of Canada’s decision to maintain its interest rates, despite the recent decline in inflation. Rendell suggests that there is optimistic chatter about the potential reduction in borrowing costs due to the decreasing inflation rate. However, he questions whether this optimism is well-founded.

The Bank of Canada, according to Rendell, is expected to hold its policy rate at 5 percent for the fifth consecutive rate announcement. Despite a previous trend of increasing borrowing costs in 2022 and the first half of 2023, the bank has maintained a hold since July, waiting for sluggish economic activity to bring inflation back within the target range. Governor Tiff Macklem, in a departure from previous statements, indicated in January that additional rate increases are unlikely. However, he refrained from providing a timeline for rate cuts, emphasizing the importance of clear downward momentum in core inflation measures.

The Globe & Mail: Bank of Canada expected to hold rates steady, even with inflation back in target range 

Yesterday’s announcements highlight the challenges of high inflation and housing costs in Canada. The report on food banks shows the growing need for affordable options, while the Bank of Canada's focus on managing inflation could lead to rate hikes. It's clear that addressing affordability, inflation, and social support is crucial.

October 26, 2023

Rendell questions the prevailing notion that declining inflation will automatically lead to lower borrowing costs. He points out that interest rates may remain where they are, causing enduring pain for those who have become accustomed to paying relatively low amounts on loans and variable-rate mortgages.

The article highlights the mixed data that the Bank of Canada is currently evaluating, with economic growth in Canada being weak but avoiding the recession predicted by many economists. The inflation rate dropped to 2.9 percent in January, a significant improvement from the 8.1 percent in mid-2022. However, shelter inflation remains a concern, rising to 6.2 percent in January.

As the Bank of Canada contemplates easing monetary policy, the challenge lies in the balancing act of addressing shelter price inflation and a volatile real estate market. While interest rate cuts could provide relief to homeowners, they might also drive home prices higher, further challenging housing affordability.

October 22, 2019

Analysts predict that the central bank may start lowering interest rates around mid-year, possibly in June, but the article warns that 5 percent is not historically high. Any rate reduction is expected to be gradual and slow, nowhere near as low as before. The author advises people to get used to this level and spend within their means.

In conclusion, despite the optimistic narrative surrounding the decline in inflation, Rendell’s article suggests that the Bank of Canada’s cautious approach to interest rates may not guarantee an immediate reduction in borrowing costs. The article encourages readers to critically evaluate the potential impact of interest rate decisions on the broader economic landscape and individual financial situations. (AI)

 

Posted in: Canada Tagged: 2024-05, alligator, Bank of Canada, borrowing costs, Canada, circus, Economy, Governor Tiff Macklem, inflation, Interest rates

Tuesday October 22, 2019

October 29, 2019 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday October 22, 2019

Canada’s divisions have been thrown into sharp relief

December 13, 2018

The 2019 federal election confirmed deep rifts in the country – from reinvigorated Quebec nationalism to Prairie anger over stalled pipelines and a suffering economy. But the results also revealed divisions that rarely get the same attention, such as the widening gulf between cities and the aging populations of rural areas.

Returns Monday night showed the Bloc Québécois, once considered a spent force, competing for the plurality of Quebec’s 78 seats with the Liberals, powered by nationalist sentiment and greying voters; and Alberta and Saskatchewan stayed a deep shade of Conservative blue, with two isolated NDP and Liberal islands among the 48 seats.

December 1, 2016

Vast northern regions of Ontario, Manitoba and and the territories with large Indigenous populations were shades of red and orange, along with downtown Montreal, Toronto and Vancouver, where there was a smattering of green. Mid-sized cities and the suburbs were the swing riding checkerboards that decided the election in the end.

The Liberal victory pitted big cities against rural regions, the North against southern cousins and the old against the young. Younger urban and northern ridings largely remained with the centre-left parties, while aging rural areas were resoundingly Conservative and Bloc Québécois.

December 20, 2018

Renewed leadership has helped drive Quebec nationalism and more robust Prairie demands, turning Quebec to the Bloc and keeping the countryside blue.

In Alberta, Jason Kenney has suggested that another term of Trudeau government would threaten national unity, while Saskatchewan Premier Scott Moe has been a reliable wingman, pushing Prairie interests with Ottawa.

“It’s certainly true that a Liberal victory of any kind will not be well perceived, especially by the two premiers who have gone to war against Justin Trudeau,” said Daniel Béland, director of the McGill Institute for the Study of Canada, who taught for 17 years at universities in Alberta and Saskatchewan before moving to the Montreal think tank last year. “It will increase the tension with Ottawa with Justin Trudeau remaining in power, even as a minority [government]. A majority [would have been] a scream fest.”

July 12, 2019

Both Quebec’s second-year Premier François Legault and rookie Bloc Leader Yves-François Blanchet rose by promising to add urgency to provincial demands for more autonomy.

“The big winner of this election is François Legault,” said Jean-Marc Léger, founder of the polling firm that bears his name. “He was at the heart of the campaign, and after what happened in this campaign he’s going to carry a much greater weight when he makes demands.”

Mr. Léger also noted that separatist and nationalist parties garnered 70 per cent of popular support in the 2018 Quebec election and were still well over 50 per cent during most of the Liberal years, from 2003 to 2018.

August 30, 2012

“There is always a strong nationalist sentiment in Quebec,” he said. “It’s just not always apparent.”

During those Liberal years, the province was led by Jean Charest and Philippe Couillard, two of the “most federalist and least nationalist premiers in Quebec history. You have to go back to Adélard Godbout in the Second World War to find a Quebec premier who had so little interest in nationalism,” Prof. Béland said.

The rise of Quebec nationalism and deep Prairie grievance do not pose immediate existential threats to national unity. Separatism is unpopular, and Quebec nationalism and Western alienation have been part of Canadian identity for most of the country’s history.

“Regional differences may be growing at the moment, but in Canada it’s cyclical,” Prof. Béland said. “I don’t think we’ll ever get rid of regionalism or Quebec nationalism. Sometimes they go dormant or are less active, but they are always there.” (Globe & Mail) 

 

Posted in: Canada Tagged: #elxn2019, 2019-37, Alberta, alienation, alligator, beaver, Canada, crocodile, division, nationalism, Quebec, separatism

Thursday August 14, 2014

August 14, 2014 by Graeme MacKay

By Graeme MacKay - Hamilton Spectator - Thursday August 14, 2014By Graeme MacKay – The Hamilton Spectator – Thursday August 14, 2014

Property tax bite still bigger in Hamilton than surrounding cities

(Revision of a cartoon originally published October 20, 2010) 

Hamiltonians still spend more income on higher-than-average property taxes compared to their municipal neighbours — but the gap is shrinking.

Hamilton Mayoral RaceThe city’s latest tax competitiveness study shows the average residential tax bill in Hamilton is around $3,700, about 9 per cent higher than the average of 16 comparable cities across the province.

We also spend more of what we make on taxes.

Property taxes as a percentage of income is 4.3 per cent in Hamilton, where the average household income is $88,582. Only three cities on the comparator list fared worse, while neighbouring Burlington comes in at the low end at 3.5 per cent.

Property taxes as percentage of income

A selection of cities:

  • Burlington, Oakville, Toronto: 3.5%
  • Barrie, Kingston: 4% (average)
  • Hamilton: 4.3%
  • Oshawa: 4.5%
  • Richmond Hill: 4.7%

On the upside, the numbers are improving. The city’s residential tax bill was 15 per cent higher than average 10 years ago, while property taxes as a percentage of income was a whopping 6.2 per cent in 2008.

But voters are clearly looking for better news, said several mayoral candidates.

“We’re moving in the right direction, but not as fast as I’m sure many of us would like,” said Councillor Brad Clark.

He noted successive smaller-than-average tax increases, including the latest 1.5 per cent bump, which ranks Hamilton as one of the stingiest budgeters outside of Windsor over the last four years.

“The issue of property taxes is still huge for people. Yes, we’re doing better, but people still feel overtaxed.”

Both Clark and fellow mayoral candidate Fred Eisenberger pointed to the need to attract new industry as an urgent priority to help spread the property tax pain.

“I’ve said it before: we don’t have a spending problem, we have a revenue problem,” said former mayor Eisenberger, pointing to successive years of lost businesses and an ever-shrinking industrial tax base.

“Priority One is retaining and growing our businesses to recapture that lost revenue.”

Hamilton homeowners carry a disproportionate share of the tax burden, with almost 87 per cent of tax revenue coming from residential properties. It could get worse, depending on the outcome of ongoing tax assessment appeals by large industrial businesses U.S. Steel and ArcelorMittal Dofasco.

A recent reassessment of U.S. Steel’s waterfront property cost the average city taxpayer an extra $9 this year – and pending appeal decisions could claw back millions more from city coffers.

The city also faces looming spending decisions, such as how much to spend upgrading bus service in preparation for a possible light rail or bus rapid transit project.

Council must do more to save or redirect cash for needed infrastructure upgrades, said mayoral candidate Crystal Lavigne. “As a city, we need to set our priorities straight and address our needs before our wants,” she said. (Source: Hamilton Spectator)

 

Posted in: Hamilton Tagged: alligator, Economy, Editorial Cartoon, Hamilton, Hamilton Election 2014, mayoral, polls, property taxes, taxes
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