cost of living crisis – mackaycartoons

The Cost of Living Crisis as we’ve known it

December 28, 2024 by Graeme MacKay

The Cost of Living Crisis As We Knew it in 2024 | December 28, 2024 | Substack Newsletter

Posted to the Hamilton Spectator, December 28, 2024

These editorial cartoons over the past few years highlight the tough times many Canadians have and are currently facing with rising living costs, especially when it comes to food. They point out how prices for everyday items, like groceries and butter, have skyrocketed, making it harder for families to make ends meet. The increase in food bank use shows the growing need for support as government action seems slow.

While some retailers are trying to improve practices, there’s a sense that more needs to be done to tackle the bigger problems affecting people’s wallets. Short-term solutions, like HST holidays and rebates, might provide temporary relief, but they don’t address the root issues. What’s truly needed are long-term remedies that ensure sustainable affordability and economic stability for all Canadians. Overall, it’s a call for better solutions to help everyone cope with these financial challenges in a meaningful way.

Friday December 10, 2021: We’ll all be paying a lot more for food next year, says Canada’s Food Price Report. Sky-high food prices were one of many negative impacts that Canadians felt during the pandemic-plagued year of 2021. And a new report suggests that problem is only going to get worse next year.

Thursday September 29, 2022: Butter is our lifeblood, our saving grace. When all else fails, butter is there for us to spread on toast, toss into mashed potatoes, shower on our movie popcorn, or use to whip up a cake. But this essential ingredient is starting to cost a pretty penny, and right before its biggest time to shine, the holiday baking season.

Thursday April 13, 2023: Move over, Tiffany’s! The hottest place to shop for precious commodities is now your local supermarket. With prices soaring to new heights, Canadians are flocking to grocery chains with the same excitement and anticipation as shopping for gold, diamonds, and expensive gems in a jewelry store.

Wednesday August 2, 2023: Inflation has been a significant concern for the Canadian economy, impacting all aspects of daily life, with grocery prices being hit the hardest. In recent months, the cost of living has surged by almost six percent, while grocery prices have soared nearly double that pace, leaving consumers feeling the pinch. As prices rise, the profits of big grocery chains have reached record highs, further exacerbating the disparity between their financial success and the plight of their low-wage workers.

Thursday October 26, 2023: 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.

Tuesday March 5, 2024: Despite falling inflation, the Bank of Canada is likely to keep interest rates steady, raising questions about an immediate drop in borrowing costs.

Tuesday March 11, 2024: Loud budgeting emerges as a powerful societal roar against corporate exploitation, stagnant wages, and governmental financial burdens, empowering individuals to reclaim control over their finances and challenge systemic inequities.

Tuesday April 9, 2024: Today’s youth face a profound struggle with financial insecurity and societal pressures, hindering their ability to engage amid a pervasive cost of living crisis.

Thursday April 11, 2024: The decision by the Bank of Canada to maintain interest rates at 5% underscores the economic struggles faced by middle-income families, who play a vital role in driving economic activity but bear the brunt of stagnant wages, rising costs of living, and financial pressures exacerbated by high borrowing costs.

Saturday May 18, 2024: The recent announcement that Loblaw Companies Ltd. and other major retailers are ready to sign on to Canada’s grocery code of conduct is being presented as a significant step toward fairer practices within the grocery supply chain. However, this development is unlikely to bring about the substantial changes needed to address the deeper issues affecting the industry and consumers.

Friday May 31, 2024: Innovative leadership is essential to address Canada’s inflation crisis, bridging the gap between optimistic official statistics and the harsh financial realities many Canadians face.

Thursday June 6, 2024: Amidst the Bank of Canada’s rate cuts offering borrowers a glimmer of hope, the rollercoaster journey of economic recovery is shadowed by the relentless challenge of rising living costs.

Friday September 13, 2024: The rise in food bank usage highlights government inaction on poverty, housing, and social services, and food banks cannot continue to serve as a substitute for systemic reform

Saturday October 12, 2024: Despite rising grocery prices, Thanksgiving 2024 offers an opportunity to reflect on the privileges many Canadians still enjoy, like access to affordable food and relative safety, even as global challenges intensify.

Tuesday March 12, 2024

March 12, 2024 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday March 12, 2024

Roaring for Financial Justice: The Empowering Wave of Loud Budgeting

March 5, 2024

In the midst of economic tumult, a refreshing wave is sweeping over personal finance—the “loud budgeting” movement. More than a passing trend, it serves as a bold call to shift our resistance from loved ones to the architects of our financial struggles: corporations, employers, and governments. Loud budgeting isn’t just a financial strategy; it’s a spirited stand against consumerism, a declaration to reclaim control over our finances, especially in social settings.

Coined by comedian Lukas Battle and making waves on platforms like TikTok, loud budgeting encourages us to break free from societal expectations and boldly declare, “I have the money, but I choose not to spend it.” In a world bombarded with product advertisements and unattainable lifestyles, loud budgeting becomes a beacon of authenticity and empowerment.

Opinion: ‘Loud budgeting’ is a personal finance trend to watch

December 2, 2023

The movement doesn’t advocate for complete social withdrawal or the rejection of every invitation. Instead, it urges us to prioritize meaningful social engagements, steering clear of peer pressure to say ‘yes’ to every outing. Battle urges us to send a message to corporations about the impact of national inflation, shifting the narrative from “I don’t have enough” to the empowering stance of “I don’t want to spend.”

The true magic of loud budgeting unfolds in social gatherings, where turning down friends and relatives for activities you’d rather not spend on can be uncomfortable. Loud budgeting steps in as the remedy, providing a toolkit for open and clear communication about financial boundaries. It’s about fostering authentic conversations, breaking the taboo around discussing finances, and setting firm goals that align with individual values.

At its core, loud budgeting extends beyond personal conversations to challenge the real culprits against whom we can make a difference in the face of the affordability crisis: corporations, employers, and governments. We may be powerless against the fight against inflation and the transfer of “fun” money to cover skyrocketing borrowing costs, but after recruiting masses, loud budgeting can evolve into a resistance movement against these entities.

August 2, 2023

Loud budgeting should extend into challenging corporate practices like shrinkflation, demanding honesty and fair deals. Employers must also be under scrutiny, with our collective shout in boardrooms advocating for wages that match today’s financial challenges. Governments, too, are not spared; our collective energy becomes a plea for reconsidering tax hikes and efficient financial management.

Alaina Fingal underscores the transformative impact of authenticity and spending boundaries. Loud budgeting isn’t just about saving more money; it’s about paying off debts and creating a financial narrative aligned with personal values.

News: Understanding ‘loud budgeting,’ TikTok’s newest finance trend

March 27, 2023

In essence, loud budgeting becomes a form of financial self-expression, allowing individuals to navigate social pressures while staying true to financial goals. It challenges systemic issues and empowers individuals to reshape their financial narratives. This empowerment should extend to being a united call against practices that exploit us, ignore fair pay, and add unnecessary financial burdens. Our loved ones shouldn’t feel the weight of our frustrations. Instead, let’s channel our energy into a harmonious push for change.

Loud resistance against corporations, employers, and governments isn’t just valid; it’s a call for financial fairness. It’s a declaration that the cost of living shouldn’t be an impossible hurdle for us or our loved ones. As we navigate economic challenges, let’s raise our voices, join forces, and harness the strength of loud resistance for a future where financial well-being is something we all share.

So, as we ride the wave of loud budgeting, let’s collectively amplify our voices, resist the pressure to spend needlessly, and reclaim control over our financial destinies. It’s time to make our roar heard. (AI)

Friday December 8, 2023

December 8, 2023 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday December 8, 2023

The Silent Pleas: Children’s Direct Appeals to Santa Reflect Growing Anxiety

December 15, 2022

As the festive season draws near, the typical scene of children sitting on Santa’s lap to share their Christmas wishes takes a profound turn. The customary requests for the latest toys are replaced by heartfelt pleas for something far more basic – food, proper housing, and a world free from the shadows of climate change and global conflicts.

A recent report from the American Psychological Association, in collaboration with ecoAmerica, sheds light on the profound impact of climate change on the mental health of children and adolescents. It paints a distressing picture where environmental events linked to climate change, such as extreme weather, heatwaves, and poor air quality, act as triggers for mental health issues, ranging from anxiety and depression to cognitive impairment and aggression.

News: Social anxiety and grief means Christmas is tough for me

December 10, 2020

The stressors don’t end with the direct impacts on children. Parents, struggling with the hardships associated with environmental events like extreme heat or wildfires, find their own mental health compromised. This, in turn, influences the well-being of their children, creating a ripple effect of trauma that extends beyond generations.

The report underscores the urgency of the situation, emphasizing that the psychological harms are unfolding right now for children and youth. It’s not a concern that can be shelved for future resolutions; society must act immediately.

December 4, 2018

The anxieties begin even before birth, with prenatal exposure to weather disasters, high temperatures, and pollution increasing the risk of a range of behavioural and developmental issues. These consequences, affecting the development of the nervous system, are often irreversible, setting the stage for a lifetime of challenges.

For infants and young children, exposure to climate change-related events and the news reports about them can lead to anxiety, sleep troubles, PTSD, disrupted cognitive development, and major depressive disorder. Adolescents, already grappling with the complexities of adolescence, face additional mental health risks as climate change disrupts their lives, potentially canceling classes, damaging their homes, or leading to food insecurity.

December 10, 2015

What makes the situation more poignant is the anxiety young people harbour about the future. They are keenly aware of the impending consequences of climate change and express deep concern about the perceived inaction of governments and authority figures. This anxiety, according to the report, is linked to heightened risks of anxiety, depression, strained social relationships, and even suicide.

As we approach the holiday season, the traditional scene of children sharing their Christmas wishes with Santa takes on a new gravity. The requests go beyond the realm of toys and gadgets; children are now directly appealing to Santa for a solution to the cost of living crisis, action against climate change, and an end to global conflicts in places like Ukraine and the Middle East.

News: Pushy children’s hilarious letters to Father Christmas

June 17, 2023

The report highlights that not all young people experience the mental health impacts of climate change equally. Those from marginalized or low-income backgrounds are disproportionately affected, lacking the resources to cope with extreme weather events. The solution, the report suggests, lies in collective action. School systems must play a more active role by designing protective facilities and incorporating climate change education into the curriculum. Health care professionals should screen for climate-related distress among youth, recognizing the urgency of addressing this pressing issue.

The responsibility, however, does not rest solely on professionals. As a society, we must recognize that children are the future, and their mental well-being is intertwined with the world we create for them. This holiday season should serve as a reminder not only to fulfill material wishes but to address the deeper concerns expressed in these direct appeals – a plea for a world where children can grow up without the looming shadows of climate change and global conflicts. It’s a call to action that cannot be ignored, for the sake of the children and the future they envision. (AI)

Thursday November 2, 2023

November 2, 2023 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday November 2, 2023

Haunted by High-Interest: The Looming Spector of Canadian Mortgage Renewals

In the eerie aftermath of Halloween, a haunting spector looms over Canadian mortgage holders, threatening a grim future of financial distress. The dread doesn’t come from ghouls or ghosts but from the imminent renewal of mortgages, unleashing a chilling cascade of increased interest rates set to torment thousands.

August 29, 2023

Recent analyses by RBC reveal a daunting reality: more than $900 billion in mortgages within Canadian banks are slated for renewal over the next three years. This impending wave of renewals, as pointed out by RBC researchers led by analyst Darko Mihelic, spells potential financial peril for many homeowners. An alarming 60 per cent of mortgages in Canadian chartered banks are anticipated to undergo renewal by 2026. As fixed-rate mortgage terms established prior to the Bank of Canada’s interest rate hike in October undergo renewal, borrowers are slated to face staggering increases in their monthly payments, a significant burden detailed in the report titled “Canadian Banks: A Review of Mortgage Payment Shock.”

The report forewarns that unless interest rates experience substantial declines, credit losses are bound to surge, potentially peaking in 2025 and beyond. These credit losses are estimated as outstanding payments owed to companies, including mortgage defaults. Alarming as it is, this prediction aligns with the Office of the Superintendent of Financial Institutions’ directive to major banks to bolster reserves for potential debt defaults, nearly tripling the amount set aside for bad loans compared to the previous year.

News: About 60% of outstanding mortgages facing payment shock in next 3 years: RBC

July 18, 2023

While some industry experts like Carl De Souza, senior vice-president at DBRS Morningstar, express confidence in the resilience of major Canadian banks against mortgage defaults, the forthcoming surge in renewals poses a significant threat to banks’ profitability and homeowners’ financial stability. However, the report suggests that the impact of mortgage losses might be mitigated to some extent due to Canada’s relatively low unemployment rate, which remains below pre-pandemic levels.

Nevertheless, the impending renewals paint a stark picture for homeowners. Banks are exploring options to alleviate the impending financial shocks, including renegotiating mortgage terms from variable to fixed rates. Currently, more than half of Canadians opt for a three-year fixed-term mortgage, but the stark difference in interest rates from previous years is ominous. Rates for a three-year fixed-term mortgage have climbed substantially, with estimates indicating a potential surge from the comparatively lower rates of 2019 to an alarming 6 to 8 percent at renewal, spelling financial distress for borrowers.

The report predicts a staggering increase in payments at each milestone year. In 2024, more than $186 billion in mortgages will renew, signifying a 32 percent payment shock. By 2025 and 2026, the looming numbers continue to surge, with estimated renewals of $315 billion and $400 billion, respectively. Payments are expected to soar by 33 percent and a staggering 48 percent, respectively, on a weighted average basis.

News: As inflationary pressures grow, Canadians increasingly struggle to make monthly mortgage & credit card payments

May 13, 2010

Even if there’s a hopeful return of the Bank of Canada’s key interest rate to 0.25 percent by 2026, the projected increase in payments still stands at a significant 20 percent. RBC’s estimations suggest a potential return to a lower interest rate in the future, yet the haunting reality of surging payments remains a foreboding certainty.

The post-Halloween season brings no respite as the grim spector of mortgage renewals hangs ominously over Canadian homeowners. The alarming forecasts and stark statistics paint a chilling picture of financial turmoil, urging caution and preparedness to weather the impending storm of high-interest renewals. (AI)

Tuesday September 19, 2023

September 19, 2023 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday September 19, 2023

Trudeau’s Desperate Bid to Salvage Sinking Polls and Soaring Food Prices

August 2, 2023

As Trudeau’s government grapples with plummeting poll numbers, the decision to summon CEOs from Canada’s grocery giants — Loblaw, Sobeys, Metro, Costco, and Walmart — to a meeting in Ottawa has become a high-stakes gamble in the quest to address the pressing issue of rising living costs. With housing and grocery prices skyrocketing, Trudeau is under immense pressure to demonstrate effective leadership, as recent polls show his government facing its worst ratings since 2015.

Trudeau’s announcement to hold the grocery CEOs accountable comes after weeks of relentless criticism from the opposition, particularly the Conservatives, on the handling of affordability issues. In a bold move, Trudeau warns these corporate leaders that they have until Thanksgiving to present a plan to stabilize food prices, with the threat of potential tax measures looming if they fail to deliver.

News: Grocer summit to ‘take the heat off’ Ottawa, not tackle food inflation: experts

March 8, 2023

This shift in stance reflects a newfound urgency, given that Trudeau had previously dismissed the idea of a windfall tax on grocery chains as “simplistic.” However, mounting public frustration and political survival seem to have swayed his perspective.

The parliamentary committee’s concerns about grocery giants profiting excessively from food inflation and the Competition Bureau’s call for increased competition have further fueled the government’s resolve to take action. Amendments to the Competition Act are in the pipeline to bolster the bureau’s authority to address market issues, fostering competition that could benefit consumers.

Led by Industry Minister François-Philippe Champagne, discussions with grocery CEOs will focus on solutions, particularly with the top five grocers that dominate 80 percent of the market. Critics, including NDP Leader Jagmeet Singh, argue that Trudeau’s plan lacks specificity and accountability, raising the challenge of translating discussions into meaningful actions for Canadians.

News: Minister says Canada’s largest grocery chains have agreed to ‘work’ on stabilizing food prices

December 8, 2016

Ultimately, the outcome of this meeting holds both immediate and long-term implications — not only for grocery prices but also as a litmus test for Trudeau’s leadership. The nation watches closely to see if this initiative will be a turning point or merely a desperate attempt to regain popularity amid a sea of sinking poll numbers. One thing is clear: Canadians are expecting tangible results that reflect positively on their household budgets. (AI)