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Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Tuesday, March 31, 2026

The prospects for left-wing populism

The prospects for left-wing populism

"Consider for a moment the volume of commentary that has been dedicated to the subject of inequality – the number of articles documenting the growing chasm separating the wealth of the 1% from the rest; the number of academic papers uncovering “disparities” along every conceivable axis of human difference; the number of scholarly books written condemning global inequality, or trends in income inequality. Now compare that to the number of words that have been written on the subject of inflation – the number of academic conferences that have been held denouncing the scourge of price inflation; the number of scholarly books that have documented its impact on the lives of ordinary people; the number of angry tracts demanding an end to fiat currency.

Even contemplating the comparison provides a useful window into the agonies of the modern left. As we all know, the average progressive intellectual cares a great deal about inequality and not at all about inflation. Seeing this makes it easier to understand why the left has been feeling frustrated. Consider the ill-fated Biden administration in the U.S. At least since the heyday of the Occupy Movement in 2011, there has been a concerted effort to get Americans riled up about wealth inequality, with the obvious expectation that some of this anger could be channeled into support for the Democratic Party. The fruits of this effort, at least on the electoral front, have been pretty much non-existent. Americans, we were told, have been tricked into caring only about cultural issues, not economics. And then suddenly, at the tail end of the Biden years, the entire world gets hit with a bout of inflation, and Americans become consumed by incandescent rage over economic issues, which they proceed to channel into support for the Republican party, which then rewards them by passing a gigantic tax cut for the wealthy.

It’s not hard to see why many people find this situation completely mindboggling. How could Americans get so upset about their economic situation, and yet fail to draw the obvious connection to the actual causes of their distress? How could they get so angry at immigrants and not at billionaires? Surely, surely, there must be some way for the left to channel this anger, to achieve some increase in support. In the past, there have been left-wing populists, and populist left-wing movements. Why is it so difficult to get anything going today?

This is the background against which the election of Zohran Mamdani as mayor of New York City must be understood. While Democratic Socialist luminaries like Bernie Sanders and Alexandria Ocasio-Cortez are sometimes described as “populist,” their recently-completed “Fighting Oligarchy” tour didn’t really set off any brushfires, much less erode support for Trump... Mamdani, on the other hand, was able to craft a populist message and platform that caught on with voters, catapulting him from a candidate who started with less than 1% in the primary polls to winning more than 50% of the general election. Lots of people would like to know how to bottle that lightning.

The difference between Mamdani’s pitch and the Bernie/AOC line is easy to see, if one has the correct understanding of populism. In fact, the comparison provides a good example of how widespread misunderstanding of populism handicaps left-wing strategy. The crucial thing to understand about populism, and populist anger, is that it is a revolt directed against cognitive elites, not economic elites. Its centerpiece is the affirmation of “common sense” against the sort of “fancy theories” defended by intellectuals and their lackeys. Common sense is the product of intuition, not ratiocination, and so a convenient way to understand populism is to see it as a political strategy that privileges System 1 over System 2 cognition.

While each style of cognition has its particular strengths and weaknesses, an important difference between them is that intuitions are elicited through interaction with the world, and are therefore focused on highly concrete, “primary” representations, whereas the analytical system is capable of performing operations on “decoupled” representations, which permits reasoning about abstract, hypothetical, and even counterfactual states. As Keith Stanovich has argued, this decoupling requires effort, in large part because it requires sustained attention...

An easy way to distinguish a populist appeal from a technocratic one is that the populist message will restrict itself entirely to primary representations. For example, the “cost of living” is not a primary representation, it is an abstract concept. The price of groceries, on the other hand, is a primary representation – everyone can easily summon up an image of the price, on the supermarket shelf, the last time they bought orange juice or bread. This is, of course, something that Trump spent a great deal of time talking about (“groceries, such a simple word”), and that the Brahmin left in America spent a great deal of time making fun of him for (e.g. here). In so doing, they exhibited a sort of higher-order stupidity. As Stanovich observes, the thing about primary representations is that they have a “special salience” that abstract concepts will never possess.

Mamdani was apparently one of the few to draw the more obvious conclusion from Trump’s remarks, which was that instead of making fun of him for talking about groceries (in a tone of often insufferable superiority), maybe the left should also be talking about groceries. So he made it one of the major promises in his campaign – a pledge to lower the price of groceries in New York by creating publicly-owned, city-run grocery stores. Of course, like most educated people, he probably knows that profiteering by grocery stores is not actually the cause of high food prices. It’s not difficult to find data showing that grocery stores in New York operate with pretty slim margins, and that the major costs occur further up the supply chain. The problem is that a “supply chain” is an entirely abstract concept, which means that for most people it might as well not exist. Obviously, if one wanted to develop a plausible plan for lowering the price of food, it would make sense to think about agricultural subsidies, or transportation costs, or retail overhead, but you’re not going to get the average person excited by talking this way. People who are mad about the cost of living are going to focus their ire on the last link of the chain, the consumer-facing organization, and that means the grocery store.

One can see a clear parallel between the Mamdani grocery store proposal and the anger directed against health insurance companies in the U.S. The targeted shooting of a UnitedHealthcare executive in the streets of New York, one may recall, also ignited a populist brushfire, leading to widespread veneration of Luigi Mangione, the man accused of the killing. Again, the wonks came out of the woodwork, pointing out that health insurance companies have relatively slim profit margins, and are not really responsible for much of the excess cost of the U.S. health care system. This analysis, however, relies on a series of abstract concepts (e.g. “moral hazard”) that are simply not available to intuition. Like grocery stores, health insurance companies are the consumer-facing part of the health care supply chain. Furthermore, insurance itself is an esoteric product, which very few people understand (most Americans believe that these companies create no value, but rather make their money by denying claims). And so for people who are angry – which presumably includes the 1/3 of Americans who are currently carrying medical debt – health insurance companies naturally get the blame.

From this analysis, one can see also why the Bernie/AOC “billionaires are bad” pitch is not genuine populism. The problem with criticizing inequality is that inequality is another abstraction, one that only intellectuals care about per se. There’s lots of research showing that most people have no idea what the distribution of income and wealth is in their society, in part because they don’t really care. What they do care about, first and foremost, is their own financial situation. To the extent that they are bothered by what others have, their attitudes are based on comparison to a specific reference group. They pick out an individual or group who is thought to be comparably situated to themselves (e.g. neighbours, high-school classmates, siblings, etc.), who then serve as a source of primary representations. They judge their own level of success and material comfort based on how well their situation compares to that of these people. (Hence the kernel of truth at the heart of H. L. Mencken’s observation that a truly wealthy man is one who earns more than his wife’s sister’s husband.)

The problem with complaining about Jeff Bezos’s yacht, or Elon Musk’s effective tax rate, as a political strategy, is that these people are completely outside the reference class of all but a small handful of Americans. As a result, their financial situation is completely incommensurable with that of the average person. It is very difficult to cultivate resentment, or any other strong feeling, by inviting people to contemplate an abstraction.

In order to do populism effectively, politicians must not only focus on problems that the public cares about, they must also by-and-large accept the public’s framing of those problems. This creates a dilemma for the left, because that framing, in a complex modern society, will usually be incorrect. As a result, it is extremely difficult to find issues on which left-wing politicians can be authentically populist. For example, many of the problems that the left would like to resolve, such as climate change, or mass transit, or even spiraling health care costs, are collective action problems. Collective action problems, unfortunately, are extremely unintuitive. (I can easily spend an hour with a blackboard explaining the basic structure to my students, and still many of them get it wrong.) It’s one thing to focus on grocery stores during a campaign, but if you actually want to succeed in lowering food prices, you’re going to have to do a bit of a bait-and-switch, or order to focus on points in the supply chain where government intervention can make a greater difference.

There are, of course, genuine left-wing populists out there, but they don’t have a very good track record of success when it comes to achieving progressive policy objectives. Many of Canada’s left-wing luminaries, like Naomi Klein and Linda McQuaig, were burned by their support for Hugo Chávez in Venezuela. The problem with Chávez was that he was an authentic populist, in the sense that he wasn’t just playing dumb, he really did reject the fancy theories of intellectuals. His response to inflation in the Venezuelan economy, and in particular to rising food prices, was to impose a set of price controls on basic commodities. In the process, he basically made entire sectors of the economy illegal. In particular, he made it impossible to sell food at anything other than a loss. People reacted by withdrawing their goods from sale, and in particular, many farmers switched to subsistence farming and stopped planting commercial crops. Millions of Venezuelans were pushed to the brink of starvation and the economy collapsed almost entirely. Approximately 25% of the population has since fled the country, making it one of the largest self-inflicted economic catastrophes of the modern era.

The problem, it seems to me, is not so much that Chávez was a socialist but that he was a populist. If one restricts oneself to primary representations of the world, what inflation looks like is a general increase in the price of goods. If one is willing to follow a more abstruse line of reasoning, one can see that appearances are misleading in this regard, and that inflation is actually just a decline in the value of money. Those who are willing to follow this abstract line of reasoning can usually be persuaded that the correct policy response lies in the realm of monetary policy (e.g. increasing interest rates, contracting money supply, etc.), in order to halt this decline. This is the exact opposite of the populist response. (Has any populist, anywhere in the world, ever wanted to do anything but lower interest rates?) What Chávez did was what anyone reasoning in a concrete manner would be inclined to do – he ordered the people who had been raising prices to stop doing it. And when he didn’t like how they responded, he sent the National Guard out to seize their goods.

One can see here the problem with the populism-envy that has been consuming the left in recent years. It’s not so difficult to craft effective populist slogans, condemning various aspects of the modern world. (Although it is perhaps worth noting that telling voters to support a particular political party, in order to alleviate some injustice suffered by some other person, or by some group that the voter does not belong to, is not ever a populist appeal.) The problem is that the left has very few policies that actually correspond to these slogans. One could see the awkward position that put people in during the “defund the police” mania of 2020, which was also a populist brushfire, but where no one could agree on what the slogan actually meant or entailed. At one point, it seemed as though the only thing that movement intellectuals could agree on was that it did not mean what the ordinary English-language sense of those terms would imply. (Similarly, many people who bought Alex Vitale’s book, The End of Policing, were presumably disappointed to discover that the title was a play on words, and that he did not actually want to end policing. The book is about the objective of policing.)

Again, this sort of bait-and-switch is practically inevitable in left-wing populism, which is presumably what discourages many people from making that pitch. Mamdani is obviously an incredibly talented campaigner, and even seems to be a successful Trump-whisperer. The question is whether he will be able to implement the technocratic policies that are actually needed to improve life for New Yorkers, without dousing the populist flame that got him into office."

 

 

 

 

 

 

 

 

 

Links - 31st March 2026 (1 - Left Wing Economics: Canada)

Carney may accept the world as it is, but we cannot accept Canada as it is - The Globe and Mail - "The bigger threat to Prime Minister Mark Carney’s mission to double exports to non-U.S. jurisdictions by 2035 is a problem of our making, rather than the tiresome bluster of President Donald Trump. A steady diet of political indifference, bingeing on bureaucracy and peppering the mix with bouts of labour militancy has clogged Canada’s large ports, our critical commercial arteries to global markets.  Transport Canada’s own assessment has shown our ports are “managed primarily in favour of importers and containerized exports are a secondary consideration.” The Montreal Economic Institute reported that Ottawa’s restrictions on automation are restraining port modernization and the efficiency it brings. RBC suggests our ports are “among the least efficient in the industrialized world,” posing one of the top economic risks facing Canada in 2026...  Our ports in British Columbia, key gateways to Asian-Pacific countries, are amongst the worst in the world – not just among industrialized countries – when in comes to productivity... The Port of Vancouver is 389th and Prince Rupert comes in at 362nd. The Port of Montreal, moving about $400-million in goods daily, is little better, ranking 344th. In contrast, Cartagena’s Port in Colombia, a troubled and relatively poor country, ranks 46th.  Large American ports such as Seattle, New York-New Jersey, Boston, Philadelphia and Long Beach, Calif., are all run more efficiently than Canada’s largest ports. The Canadian bright light is the Port of Halifax, in 55th place.  The price of our indifference shouldn’t be dismissed. A case in point is potash, which is mostly mined in Saskatchewan. It is a much sought-after agricultural fertilizer that increases crop yields and wards off crop diseases. Canada generates a third of global potash production volume and is positioned to materially increase that in the coming years. Our primary potash export market is the United States. Yet there is room to expand export markets in China, India, Indonesia, South Korea, Malaysia and many more countries – the very goal Mr. Carney has laid out for the country to reduce dependence on the Americans.  But last year one of our country’s most important potash miners, Nutrien, announced a $1-billion investment in the Port of Longview, Wash., deciding not to invest in the ports of Vancouver or Prince Rupert.  The company, having endured years of rail bottlenecks, labour disruptions, higher costs, and aging infrastructure, and little prospect of change, decided to mitigate its Canadian risk.  In this case, that mitigation strategy entails directing a large portion of the potash it mines through the U.S. to tidewater in Washington State. Nutrien’s decision could see half of all the potash it produces shipped through the U.S. by 2031.  If the Port of Vancouver continues to decline, even more potash could transit through Washington State in the years ahead, and with it well-paying union jobs, government revenues and logistics expertise, just as Canada is working to loosen America’s grip on our economy."
Time for the unions to strike again

Tristin Hopper on X - "I once went to the funeral of a guy whose entire professional career was designing things that never got built, or were at most failed boondoggles. I can't emphasize enough how much "not building stuff" has been a defining feature of Canada since the 1970s."
John Carter on X - "The incredible thing is that the national debt during Canada's infrastructure building period, which encompassed both World Wars, was effectively nothing.  The moment we stopped building things, the debt skyrocketed.   This was because the elder Trudeau redirected the government from nation-building to buying votes for the Liberal Party with welfare state patronage schemes, and ran up the national credit card to pay for it.   It was also because he changed the rules such that the government could only take interest-bearing loans from private banks, rather than the previous system of funding infrastructure development via interest-free Bank of Canada loans.   Which was how Trudeau paid off Canada's financial classes to look the other way as he bankrupted the country.  Trudeau was the greatest criminal mastermind in Canadian history."

Canada Post carrier fired for hoarding 6000 pieces of mail reinstated - "An arbitrator has ordered the reinstatement of an Ontario postman fired for hoarding at least 6,000 pieces of mail during the summer of 2022 because Canada Post wasn’t aware of his post-traumatic stress disorder. Hyun Min Jang was terminated from his job as a rural and suburban mail carrier in King City, Ont., “for misdirection and delay of mail, as a result of the discovery of thousands of pieces of undelivered mail in his personal vehicle,” according to a recent decision from Kathleen G. O’Neil, the arbitrator.  “Items retrieved from (Jang’s) vehicle included a great variety of mail, some of significant importance to customers such as wedding invitations, cheques, health cards, tickets, jury summons and immigration documents,” O’Neil said... The Canadian Union of Postal Workers grieved Jang’s termination.  “The union acknowledges the undelivered mail as major misconduct for a mail carrier, but asks that (Jang) be reinstated to his position with appropriate accommodation for a health condition that affected the conduct that led to his discharge,” O’Neil said... Jang, who needed a Korean interpreter for the arbitration hearing, “worked successfully for Canada Post for approximately eight years, starting in 2014,” said O’Neil’s decision dated Dec. 16, 2025."

Losing our public services to privatization is criminal. Guess who's going to fill that void. : r/EhBuddyHoser - "Maybe management should take a pay cut then? Why's that never on the table?"
"The CEO of Canada Post, Doug Ettinger, has a salary within the range of $506,800 to $596,200, with a maximum performance bonus of up to 33%. This places the total potential compensation between approximately $562,200 and $661,400 per year.  Canada Post loses $10 million a day."
Left wingers just hate the private sector on principle

B.C. premier paints rosy picture for economy heading in to 2026 - "B.C.’s premier says companies and investors are gaining confidence in major project proponents in the province, despite some economic uncertainty that remains."
Weak economic growth forecast for B.C. in 2026, says new Deloitte report

Eric Lombardi 🇨🇦🚀🏗️ on X - "My latest for @TheHubCanada CANADIANS MUST OPEN THEIR EYES TO OUR GROWING CULTURE OF CORRUPTION.
“Across all these examples, an unmistakable pattern emerges: the erosion of restraint.   Canada has built a system where every pressure is answered with a new program, a new grant, a new intervention, a new procedure. Complexity accumulates. Discretion expands. Those with influence use it. But the public feels the consequences.   Infrastructure is slowly built that costs far more than it should. Housing approvals take years instead of months. Businesses wait on permits rather than customers. A younger generation feels downwardly mobile. The population has a growing sense that government money is being used to manage political interests rather than create opportunity.  Corruption in Canada is not a handful of scandals. It is now a culture. A system of indulgence and avoidance that rewards extraction because no one is willing to confront the incentives that sustain it.”"
Eric Lombardi 🇨🇦🚀🏗️ on X - "“Consider that the City of Toronto steers about $1.65 billion in construction work each year into “closed tendering” union arrangements, with estimates saying taxpayers are over-paying by roughly $350 million annually as a result.   Or the federal level, where the government has committed $382.9 million over five years to launch the “Workforce Alliances” programme, which “brings together employers, unions, and industry groups to coordinate public-private investments in skills and training”. The same budget also provides $75 million over three years to expand the “Union Training and Innovation Programme.”  Unions are among the biggest non-party political advertisers in federal campaigns, and are influential in procurement, public advisory boards, and sectoral decision-making with little public scrutiny.   Unions make up the bulk of the millions of dollars spent directly on electioneering by third parties.   The list goes on, not because unions are uniquely evil but because we have stopped applying a test of public value to the privileges they receive. Why? Because politicians fear their electoral impact.”"

Kirk Lubimov on X - "You don't realize how alarming Canada's manufacturing collapse is until you look at it in manufacturing GDP per capita. Since 2005, Canada's manufacturing GDP per capita has declined by 30%. 20 years of decline. The average Canadian produces less and less but no surprise as 25% of the workforce works for the government."

David Knight Legg on X - "Pax Silica is a new US and UK and Australia led tech and critical minerals security coalition.    Where is Canada?  We have US-adjacent supply chains and vast critical mineral deposits.  Why are we missing - as we also are in AUKUS - again?
- Pax Silica is a security coalition between US, UK, Australia - and tech/sovereign wealth leaders Japan, UAE, Singapore, South Korea, Netherlands and Israel.
- Canada is also missing from the advanced submarine warfare coalition between Australia, UK and US (AUKUS) in spite of the largest coastline and adjacency to Russia.    Why isn’t Canada a part of key emerging security coalitions with our allies?"
Jean Philippe Fournier on X - "This is a very serious issue and it leads to uncomfortable questions.  Canada seems to be increasingly left out of important multilateral agreements despite being a member of the G7 and having a top 10 economy.   Part of the reason is Canada has been a worse military freeloader than Europe.  Another is that the Canadian economy has underperformed and is taken hostage by competing regional and other stakeholders.  If serious action isn’t taken (and that would mean putting aside the Canadian need for consensus decision making), Canadians could wake up to being totally locked out of the forums that shape the world and that’s not something the country is used to."
🅰️sh Dash on X - "Canadians want to be left out - they experience suicidal empathy at the resource level - could extract it all to prosper, but most Canadians want to keep it in the ground. Doesn't matter if they go extinct, the success that comes with being resource rich is too much to bear."
When you can't develop due to indigenous sovereignty, environmental concerns and regulation and on top of it hate the US

Meme - Kirk Lubimov @KirkLubimov: "It may be a tough pill to swallow for many Canadians but Canada has a lost decade and it has nothing to do with Donald Trump. Donald Trump just exposed it even more. It has everything to do with the people you voted for. No lies or excuses can make up for it."
"Real per capita GDP growth among G7 countries: Last 10 years *Worst compared to, in descending order, USA, Italy, Japan, Great Britain, France, Germany*"

Tech founders leaving Canada at accelerating rate, survey finds - The Globe and Mail - "Toronto venture-capital firm Leaders Fund found that just 32.4 per cent of Canadian-led “high-potential” startups launched in 2024 were headquartered in Canada. (The study defined these startups as having raised US$1-million, with most of their senior leaders educated in Canada. The survey tracked 2,932 such companies over a decade.) From 2015 to 2019, that figure exceeded 67 per cent. Much of the decline has occurred since the COVID-19 pandemic began. As a result, Canada is producing relatively fewer of the world’s high-potential startups, the study finds... The Leaders Fund study and other industry players have identified many issues that are hurting Canada’s competitiveness. Managing partner Gideon Hayden said deal flow at the Leaders Fund used to come mostly from Canada, but investments in the U.S. and Israel now account for 70 per cent of its financings. That shift prompted the firm to seek out whether that indicated a wider trend, using data from market-research firm Specter. “What is indisputable is that after 2020, virtually every single one of these metrics,” he said, “start to deteriorate in Canada, while in other ecosystems, that is not necessarily the case.”... Many believe the lengthy pandemic lockdowns in Canada compared with the U.S. held back a recovery, as the tech hubs of San Francisco and New York were quicker to restart networking events such as hackathons and founder meet-ups... there is a broad consensus among sector leaders that much needs to be done to make Canada a more competitive place to build a tech business. The U.S. offers many advantages for founders over Canada: Capital is abundant, the climate is more business- and founder-friendly, and the breadth of thriving tech companies in the Bay Area and New York is an irresistible draw. There is less red tape and fewer regulatory roadblocks. Governments and businesses are more willing to buy from startups.  Meanwhile, Canadian tech entrepreneurs felt betrayed last year when the federal government proposed to increase taxation on capital gains after years of mounting deficits and spending increases. The U.S. government, in contrast, raised the tax exemption on capital gains by founders this year to US$15-million. While Prime Minister Mark Carney cancelled the Canadian tax change, its proposal by predecessor Justin Trudeau “was a low-water mark for startup entrepreneurs’ confidence in the federal government,” said Benjamin Bergen, president of the Council of Canadian Innovators. “My takeaway is founders aren’t fleeing Canada, they are fleeing the friction that Canada has created,” said Lucy Hargreaves, CEO of Build Canada, a fledgling organization that has posted a series of memos from accomplished founders outlining how governments could improve Canada’s competitiveness. “If we keep pushing our builders away, we’re exporting our future prosperity.”  One such company is Aalo Atomics, founded in 2023 by Toronto’s Matt Loszak to rapidly assemble nuclear plants to electrify data centres. He first pitched the idea at home but got a cold reception from investors and utility Ontario Power Generation. He moved his company to Texas, raised US$136-million and got approval from the U.S. Department of Energy to build a power plant. “We wouldn’t have been able to raise $136-million so quickly in Canada,” Mr. Loszak said. “That would have slowed us down.”... “Every founder who leaves Canada is one less person creating jobs, paying taxes and building prosperity here,” Ms. Hargreaves said. “We should be treating startups the way we treat our natural resources. They are a strategic asset that underpins our future economy.” "
Time for more regulation and to "tax the 'rich'" more

Canada’s national unity faces a major test in 2026 | Toronto Sun - "If legitimate concerns and grievances for both provinces are not dealt with by Ottawa, support for the separatist movement will only grow.  That would include the Carney government dealing with one of the biggest threats to national unity in Western Canada, the continued refusal of British Columbia Premier David Eby to be cooperative in any way shape or form with Alberta on the issue of a pipeline to the Pacific.  The fact that Alberta Premier Danielle Smith is talking about the need for a pipeline route to the Pacific that goes through the United States instead of B.C. should be of concern to all. It would show that Alberta’s prosperity would be better served working with the Americans than with other Canadian provinces.  Sadly, for those in the Ottawa bubble or captured by it, the likelihood of them being as concerned about separatism or national unity in Western Canada as they are about the possibility of Quebec separatism is slim to none. If the parochial attitude of the Laurentian elite, who continue to run this country, prevails then we will see scorn for the West and overtures to Quebec. And against this backdrop is the fact that unlike in 1995 when Bill Clinton was in the White House and spoke in favour of a united Canada, we can’t rely on that same sentiment coming from the White House now."

No 'business case' for pipelines because Liberals want it that way - "There is something perverse about a government that once claimed there is “no business case” to sell natural gas to Europe so our allies don’t have to rely on Russia, but whose prime minister is happily going to China to talk energy exports. That energy, by the way, could very well end up powering a Chinese invasion of Taiwan. The Liberal party’s disreputable habit of siding with authoritarian enemies of the West aside, the government’s position on whether there is a “business case” for an energy project has nothing to do with the market, and everything to do with politics.  When, on Thursday, Liberal MP Nate Erskine-Smith mocked those who want pipelines built “with no business case or analysis,” he wasn’t entirely wrong. Of course there is no business case for a pipeline, because the Liberals have engineered it that way. They’ve strangled the energy industry with regulation to such an extent that few businesses would ever risk hundreds of millions, if not billions, in investing capital, on their own. So, yes, there are no business cases for pipelines in Canada, only political ones. After the Americans deposed Venezuela’s murderous dictator Nicolás Maduro last weekend, Conservative Leader Pierre Poilievre and Alberta Premier Danielle Smith argued that it had become even more necessary to approve and build pipelines in order to compete with Venezuelan oil. Yes, it could take about a decade for the Latin American country’s oil industry to rebuild once U.S. sanctions are lifted and investment resumes, assuming everything goes perfectly, which it likely won’t. But it could take at least that long to bring a new pipeline to the West Coast online... By no means is acknowledging the challenges ahead for the Venezuelan oil sector a vindication of the anti-oil agenda of the Liberal party, but those sympathetic to that agenda are trying to spin it that way. Globe writer Doug Saunders hilariously wrote on X that if anything, in light of Maduro’s removal, Canada needs to stop developing carbon-based energy altogether and immediately: “In fact, Venezuela amplifies the case that we urgently need to cancel any planned pipelines and pour investment into post-petroleum diversification.” This is silly. The people who never wanted energy infrastructure in the first place and have worked tirelessly to prevent it from ever getting built aren’t suddenly listening to business experts. They are cherry-picking what analysts say. As my Post colleague Jesse Kline pointed out, predictions in the past of peak oil turned out to be entirely bunk, so the left is now saying we must abandon oil because it is too plentiful.  About a decade ago, when the Liberals first came to power, there were multiple pipelines and other energy infrastructure projects being advanced by private companies with actual business cases and everything. The Trudeau government then proceeded to systematically squash the industry. They cancelled the Northern Gateway pipeline. Energy East was killed because of political opposition and the uncertainty created by the government’s regulatory agenda. The same was true of the Mackenzie Valley Pipeline, while the Trans-Mountain pipeline expansion was also nearly cancelled, and only survived because Ottawa purchased it.  In all, by 2020, some $150 billion in energy infrastructure projects were cancelled largely due to politics and regulation. That only accounts for projects that were formally put forward, never mind the projects that were never, and will never be, proposed because of the Liberals’ antagonism to anything that would bring wealth to this country. The combination of the Impact Assessment Act, the tanker ban and the promise of an emissions cap, not to mention the government’s ability to just cancel projects, have all conspired to ensure energy companies avoid investing in Canada.  Mark Carney’s memorandum of understanding with Alberta superficially promises to approve a pipeline, but puts so many environmental restrictions on any such project, and defers far too much to anti-energy B.C., that it is just another case of the Liberals replacing the judgment of private business with their own. So, when they say there is no business for a pipeline, believe them — because that has always been the plan."

'No one is going to build a pipeline without certainty,' Keyera CEO says - "The head of one of Canada’s largest midstream oil and gas operators says attracting private capital for another pipeline will require permitting reform and clearer assurances from Ottawa.  Pipeline operator Keyera Corp. is set to become a national-scale natural gas liquids (NGL) company when its $5.15-billion acquisition of Houston-based Plains All American Pipeline LP’s Canadian NGL business closes early next year...
 For us to attract more investment in Canada, we have to really reform our policies and our regulations. Investors see it as risky if they don’t have clarity on where carbon taxes are going: clean electricity regulations, emissions caps, tanker bans and things like that. There has to be 100 per cent clarity on what those policies are. No one is going to build a pipeline without that certainty. It’s just not going to happen.   Part of that is regulatory and permitting reform, too. We always think it’s a lot of money to build a pipeline like Trans Mountain or Coastal GasLink. Those pipelines would cost a lot less if we had the right regulatory and permitting processes. Trans Mountain should cost less than half of what it cost. But we have too many headwinds that we create for ourselves in Canada. If we can get that policy reform, it would lower the hurdle rates for someone to make an investment to build another pipe."
'No one is going to build a pipeline without certainty,' Keyera CEO says : r/ilovebc - "No one is going to build anything of consequence without certainty."
Left wingers throw up endless obstacles to a pipeline (on top of their general anti-economic growth agenda), then claim there's no point trying to build one because no one wants to
One left winger called me ungrateful when I pointed out that the government making pipelines impossible to build, then coming in at a later stage and reversing the self-inflicted damage to some extent was not a "subsidy"

Gunter: Canada full of internal obstacles to 'nation-building' projects - "Want to know why nothing of significance ever gets built in this country? Consider the allegations levelled by NDP leadership contender Avi Lewis against pipelines, mines and other “nation-building projects” proposed by Prime Minister Mark Carney and others such as Alberta Premier Danielle Smith. At his party’s French-language leadership debate last week, Lewis insisted the effect of megaprojects on women and girls, especially Indigenous women and girls, “are intense, are horrifying.” “Big, manly things with huge work camps entailed in remote areas,” Lewis charged, lead to widespread murder and sexual assault. This echoes the controversial Missing and Murdered Indigenous Women and Girls (MMIWG) inquiry whose 2019 final report stated, without much evidence, that Canada’s resource industry brings “extractive violence” and drug trafficking to Indigenous communities. The MMIWG report also blamed “man camps” for increased “sexual harassment and stalking,” “increased domestic violence” and increased risk of Indigenous women “going missing or being killed.” Environmental groups have also used alleged violence in surrounding communities from “man camps” in seeking court injunctions against megaprojects. With segments of elite opinion so tainted against pipelines, hydro dams and mines — and for imaginary reasons — it’s no wonder investors stay away from Canada. Then there is the fact that Carney has given both the B.C. government and coastal First Nations de facto vetoes over an oil pipeline to the West Coast. And both groups have declared they aren’t afraid to exercise those vetoes. That will certainly raise the anxiety of potential investors who might spend billions getting federal approval only to lose it all because a First Nation or the very anti-development B.C. government figuratively lays itself across a pipeline right-of-way. On Monday, B.C. NDP Premier David Eby said he might be open to pipeline from Alberta to the coast if such a line did not require the lifting of the federal tanker ban off B.C.’s northern coast. If the pipeline could be brought to Vancouver (which already has a tanker port), Eby and his government might be prepared to consider it. But Eby’s not stupid. He knows such a route change could add 40 per cent to the final cost of an already expensive project. Indeed, Eby may be counting on the added expense to deliberately drive investors away and kill the pipeline that way. Then Tuesday, the other group to whom Carney granted a virtual veto — First Nations — voted unanimously for Ottawa to maintain its tanker ban and for Ottawa and the Alberta government to “withdraw” their memorandum of understanding on pipeline construction. Like it never even happened. And Tuesday’s vote wasn’t just among West Coast First Nations. It came unanimously from chiefs all across the country. As a country, we never have a shortage of people eager to kill economy-enhancing projects. The mindsets of our politicians, journalists, artists, interest groups and First Nations — even our “experts” — is to kill projects before they begin. Finally, Alberta, alone among provinces, is in the second quartile of the most-free economies in North America. All other Canadian provinces are in the third quartile. Those provinces’ taxes, regulations and red tape are only slightly more attractive than the most-restrictive Mexican states, which the Fraser Institute ranks as the least-free in North America. We know we need to expand our economy. We know we need to improve our productivity before our standard of living drops further. In the last decade, since the Liberals have been in power, Canadians have watched their incomes stagnate at the same time as prices have risen, substantially. That’s not a good combination. It explains the affordability crisis for items such as groceries, cars and housing. This, though, is a country that likes its “free” government benefits, particularly health care and education. And if we don’t get over our negative mentalities towards private-sector projects, soon enough our economy will shrink and our governments will run out of revenues to cover those expenditures."

You said it: Nation-building projects done - "Hooray! We have yet another spineless PM in Mark Carney who has, in essence, given de facto pipeline vetoes to B.C. and the First Nations. In other words, we will never again complete any badly needed “nation-building project” in Canada. Lorne Gunter writes, ”As a country, we never have a shortage of people eager to kill all economy-enhancing projects” before they even begin. These radical elements of our society will be the ones to scream the loudest when, as Lorne writes, our governments run out of revenues to cover “free” government benefits like health care and education."

Letters: Why does 'Buy Canadian' exclude 'Buy Alberta (oil)'? - "Why does Prime Minister Mark Carney’s “Buy Canadian” policy exclude Albertan oil? How can Canada become a self-sufficient energy superpower while importing crude oil into Ontario, Quebec and the Atlantic provinces? Canada spends approximately $20 billion annually importing oil into eastern Canadian provinces. Every year eastern Canadians convert $20 billion Canadian dollars into USD to pay for the imported oil they consume. Essentially $20 billion Canadian dollars are exported from Canada’s economy annually. National income increases as money circulates through the economy. Basic economics calls this circulation of money the multiplier effect. Using a reasonable Marginal Propensity to Consume of 60 per cent, providing Albertan oil to eastern Canadian consumers would add $50 billion to Canada’s economy annually. Building the Energy East pipeline and securing energy self-sufficiency in a troubled world should be the No. 1 nation-building project. Shipping processed petroleum products will minimize the pipeline’s footprint. Pipeline construction will keep Canada’s steel and manufacturing industries busy. Using Canadian know-how with Canadian engineering and trades will lower unemployment rates. Carney tried to appeased U.S. President Donald Trump with a proposed revised Keystone XL oil pipeline shipping Alberta crude to Nebraska. Instead of “Buy Canadian Oil,” the PM’s solution is to increase dependency on our American trading partner. Given Carney’s ‘values’ it is easy to understand why he has a blind spot for Canadian oil."

Friday, March 27, 2026

Links - 27th March 2026 (2 - Left Wing Economics [including Poverty and Crime])

Meme - John Rain: "Poverty does not cause crime. You will find a correlation between neighborhood deprivation and violent crimes as a whole, but it disappears once you "adjust for genes', ie by comparing siblings for example."
"The Impact of Neighborhood Deprivation on Violent Crime: It Declines With Added Controls"

Childhood family income, adolescent violent criminality and substance misuse: quasi-experimental total population study - "There were no associations between childhood family income and subsequent violent criminality and substance misuse once we had adjusted for unobserved familial risk factors."
More proof that poverty causes crime

Does Poverty Cause Crime? - "the relationship between poverty and crime is inconsistent. If poverty causes crime, why don’t all similarly impoverished groups—by race, religion, ethnicity, age, gender, and so on—commit violent crimes at the same rate? The fact that they don’t suggests that other factors are at play. Consider some striking facts that illustrate the inconsistency between poverty and violent crime. Some cities and countries with high poverty rates have low murder rates, and vice versa. Calcutta, for example, one of the poorest cities in India—and, indeed, the world—recorded a murder rate of just 0.3 per 100,000 people in 2008. The rate in Delhi, by contrast, was 2.9 per 100,000. That same year, the rate in far wealthier New York City was 7 per 100,000—more than 23 times higher than Calcutta’s.  Zimbabwe, among the poorest African countries, had a remarkably low murder rate of 0.5 per 100,000 in 2023. By contrast, Jamaica, with a relatively modest 16.7 percent of the population in poverty, had the world’s highest murder rate: 49.3 per 100,000. What explains the relative nonviolence of impoverished Zimbabweans? And why are Jamaicans so homicidal, despite their relative affluence? Clearly, poverty can’t be the answer to both questions.  Turning to macro trends in the United States, we find similar anomalies. In the late 1930s, as the Great Depression worsened, homicide rates declined, as I note in my book The Rise and Fall of Violent Crime in America. Likewise, during the so-called Great Recession of 2007–09, murder rates, which had begun to sink in the early 1990s, kept falling. And in the late 1960s, when the American economy was booming, the great crime wave (more like a crime tsunami) was beginning its deadly multi-decadal surge—a pattern that I discuss in The Rise and Fall of Violent Crime in America. Criminological research has revealed similar surprises, with no consensus on the explanation. Over 40 years ago, criminologist Steven F. Messner, studying more than 200 metropolitan areas, was astonished to find that, after controlling for various demographic variables, poverty was inversely related to homicide. In other words, the more poor people there were in a metro area, the lower the murder rate was. As a follow-up, the same researcher studied Manhattan neighborhoods, this time finding that, while poverty was associated with homicide, economic inequality—the concentration of wealth in fewer hands—bore no connection to killing.  In a 1996 study of extremely disadvantaged neighborhoods in Columbus, Ohio, which included poverty as part of its definition of disadvantage, Lauren J. Krivo and Ruth D. Peterson found that, even at comparable levels of hardship, black communities had higher rates of violent crime than white ones. In 2009, Krivo and Peterson and a third coauthor identified significant differences in violent crime levels between black and Latino neighborhoods, despite similar levels of disadvantage and segregation... I wrote for City Journal about a new study on Asian poverty in New York City. Columbia University researchers found that more Asians than African Americans were living below the poverty line, a surprising result. Curious about how this affected crime, I examined violent crime arrests. The data showed far more arrests of blacks than Asians... while more Asians live in poverty than blacks, African Americans are 16 times more likely to be arrested for murder.  The disparities extend to other violent crimes. The black arrest rate is 4.5 times higher than the Asian rate for felony assault, 3.3 times higher for rape, and 11.4 times higher for robbery. Latino arrest rates are also higher than Asian rates, though generally lower than black rates.   Clearly, poverty alone does not explain these disparities. But what does? Given that black violent crime rates have been elevated relative to other social groups since the late nineteenth century, it appears that something in the culture of poor blacks, especially young males, predisposes them to violence.  The phenomenon is often described as a “subculture of violence,” marked by a heightened sensitivity to perceived slights and threats, along with a readiness to use violence in response. Yale sociologist Elijah Anderson, who spent four years immersed in Philadelphia’s inner cities, identified a “code of the street”—a set of unofficial rules for poor black neighborhoods. The essence of this code is to display violence, or a predisposition to violence, to ward off the all-too-common attacks and assaults in these communities... Lifting the poor into the middle class does reduce violent crime, as we saw with Irish immigrants in the nineteenth century and Italian immigrants in the early twentieth. But there is little agreement on how best to achieve this through government policy."
The cope is that blacks are wrongly arrested and convicted, inflating the arrest and conviction numbers
If the Scottish influence theory is right, Scots should be as prone to violence as African-Americans. But...

Poverty and Violent Crime Don’t Go Hand in Hand - "in New York City, Asians’ relatively high poverty rate is accompanied by exceptionally low crime rates. This undercuts the common belief that poverty and crime go hand in hand.  Asians had consistently low arrest rates for violent crime—usually lower than their proportion of the population, lower than those of blacks and Hispanics, and in one category (assault), even lower than that of whites, who, as a group, are far less often impoverished... At 1.2 per 100,000, Asian murder arrest rates were nearly one-ninth of black rates. If poverty were the principal cause of crime, we would expect Asian rates to be as high, if not higher, than those of blacks. That the Asian rates are relatively low illustrates what I call the “crime/adversity mismatch,” a recurring phenomenon. As I observe in my history of crime: “Throughout American history, different social groups have engaged in different amounts of violent crime, and no consistent relationship between the extent of a group’s socioeconomic disadvantage and its level of violence is evident.”   When it comes to violent crime—murder, assault, robbery, and the like—history tells a complicated story. In the late nineteenth and early twentieth centuries, impoverished Jewish, Polish, and German immigrants had relatively low crime rates, while disadvantaged Italian, Mexican, and Irish entrants committed violent crime at high rates. This crime/adversity mismatch also seems to be a global phenomenon. In Great Britain, for instance, a criminologist observed that “all of the minority groups with elevated rates of crime or incarceration are socially and economically disadvantaged, but some disadvantaged ethnic minority groups do not have elevated rates of offending.” There, too, it was the case that Asians were more disadvantaged than blacks, but the latter had much higher offending rates.   Why is it that poverty is not consistently related to crime? A major reason is that crimes of violence are usually motivated by quarrels, personal grudges, perceived insults, and similar interpersonal conflicts, not by economic necessity. Consequently, a decline in one’s financial condition is not likely to cause violent criminal behavior. This explains why an economic recession or depression does not invariably produce a crime spike. In the second half of the 1930s, for instance, violent crime declined, even though the country experienced some of the worst years of the Great Depression. Likewise, during the Great Recession of 2007–2009, when the economy tanked, crime fell."
Clearly, white people are victims of racial profiling, which is why they are arrested more than Asians

Revisiting the Income Inequality-Crime Puzzle - "The economics literature generally supports a positive theoretical link between income inequality and crime. However, despite this consensus, empirical evidence has struggled to yield definitive conclusions. To address this puzzle, I conducted a meta-analysis based on 1,341 estimates drawn from 43 studies in economics journals. The findings indicate a statistically significant but economically insignificant true effect of inequality on crime, ranging between 0.007 and 0.123 using UWLS FAT-PET and advanced methods. In essence, if there is an impact of inequality on crime, it is, at best, minimal. Additionally, there is some limited evidence suggesting positive publication bias. Results from Bayesian model averaging reveal that inequality does not affect exclusively property crime, as predicted by the rational choice models. Moreover, this analysis shows that inequality measures which are sensitive to changes in income at the middle and top of the distribution are associated with higher coefficients. The study also underscores the biases arising from the exclusion of relevant variables. The implications of this research suggest that inequality may not be the primary motivator for criminal behaviour, with other factors potentially playing more significant roles. Lastly, if inequality does affect crime, it might do so in different ways than those discussed by the majority of the existing empirical studies."

Thread by @cremieuxrecueil on Thread Reader App – Thread Reader App - "In 2014, David Graeber wrote an article for the Guardian in which he argued "Working-class people... care more about their friends, families, and communities. In aggregate... they're just fundamentally nicer."  The Economist put up a similar article at the time.  Were they right?
To make his case, Graeber wove a nice little narrative together about how the rich don't need to care, so they don't, and thus they're bad at empathy and they do things like hiring out the sons and daughters of the poor to do the job when empathy is needed.  The meat of Graeber's case was a set of two social psychological papers.  The first was a set of three studies in which the poor appeared to outclass the rich at tasks like the Mind in the Eyes, or figuring out the emotions of people they're talking to.  The main effects from these studies had p-values of 0.02, 0.02, 0.04, 0.01, 0.04, 0.03, and 0.04.  This first article was severely p-hacked. To make matters worse, one of the studies featured priming and two of them used "subjective" measures of social class. The second article was a series of seven studies that were, at times, just bizarre.  In the first two studies, students watched cars at a four-way intersection and tallied up how often the "upper-class" and "lower-class" cars cut off other vehicles and pedestrians.  What's an upper-class car? Beats me. It was based on student judgment.  p's = 0.046 and 0.040. In the rest of the studies, things were similarly dodgy: almost all of the p-values were barely less than 0.05, the hypotheses were unbelievable, priming was featured, low power was abused, and liberties were taken in sampling and in defining key variables
So what happens next?  Some researchers looked at these studies and the media coverage saying that the rich were bad at being empathetic, were selfish, etc. and thought  Wait, why does every field but social psychology say the opposite? Social psychology, alongside nutrition, is a paragon of the replication crisis. Not in a good way, mind you, in the sense that remarkably many of its studies failed to replicate  Studies from outside social psychology got less coverage, but indicated the rich were more prosocial. The researchers decided to use large, population-representative samples with objective measures of social class to figure out if the rich were more prosocial or antisocial than the poor  To start, in these two studies from Germany (SOEP) and the U.S. (CEX) they donated more often   This is key. The reason is, some studies had indicated that the poor donate relatively larger portions of their incomes.  But, those studies all looked at donations among those who donated. In other words, they didn't account for differences in the likelihood of donating at all. Account for that difference, and a proposed curvilinear relationship between relative amounts of donations and poverty disappears. Now, the rich just donate more absolutely and relatively! In the GSS, measures of both objective and subjective social class were available, so they could be discriminated and... it appears subjective social class might be weaker than objective social class as a predictor of at least this prosocial behavior:
You could argue donations aren't a great metric.  Fine.  So look at volunteering, which the rich in the SOEP were more likely to do (and do more frequently—not shown here). In the GSS, the same result emerged: the objectively and subjectively rich volunteered more usually (and frequently—again, not shown here).  This happens despite the poor having more free time and the rich spending more time each week gainfully employed on average. If you look in the ISSP—a large international survey covering more than 30 countries—the rich are more likely to volunteer at all in aggregate, and they volunteer more frequently, although there is some heterogeneity across countries in the frequency of volunteering relationship:
You could argue that the poor are more selfish because they're poor. And, OK! But even in the setting of the well-known trust game, the rich were more trusting and more trustworthy:
Since the poor commit more crime, are more likely to act indecent and loud, show less trusting and trustworthy behavior, and so on, we really have no reason to believe Graeber's article and so many others like it.  They were, at best, a relic of the replication crisis. At worst—and this is likely what they really were—they were political wishcasting.  So let's not denigrate the rich, because it's not true that they deserve it."

Kevin Bass on X - "At least 20% of healthcare spending is waste and fraud. That's $1,000,000,000,000 on waste and fraud in healthcare alone. Maybe as much as $2,500,000,000,000. The federal deficit is $2,000,000,000,000. America is being bankrupted by waste and fraud."
Anthony DiGiorgio, DO, MHA on X - "I believe this.  Some of it is the obvious cartoon villain stuff. The outright fraud like the Minnesota autism scam.  But a lot of it is softer fraud.  When a hospital charges $18k for an MRI that can be done for $400, that is not technically fraud. It is still an extraction racket.  When state Medicaid programs award massive contracts to politically connected nonprofits or vendors, they will insist it is not fraud.  All of these revenue streams started with good intentions. Of course we want to support disabled children. Of course we want low income patients to have access to imaging and specialty care.  Then people figured out how to enrich themselves inside those programs.  What we now have is a massive wealth extraction industry hiding behind moral language and complexity.  Audit everything."

The Minnesota fraud scandal is just the tip of the iceberg - "Minnesota is not the exception but rather the example Americans finally noticed. Medicaid fraud has been endemic at the state and federal levels for decades. Politicians haven't done much, even with scholars and journalists raising the alarm.  Medicaid reports $543 billion in "improper payments" over the past decade, though that figure omits one of the largest sources of error: whether states correctly determined the eligibility of the individuals they enrolled and paid providers on behalf of. According to Paragon Institute calculations, this brings improper payments to $1.1 trillion over those 10 years.  Improper payments are not identical to fraud; many involve missing documentation or administrative errors. But that distinction offers little comfort considering how little money is recovered. They are also an open invitation for more abuse.  Actual fraud, meanwhile, is widespread and persistent. In 2024 alone, state Medicaid Fraud Control Units reported more than 1,151 convictions and more than $1.4 billion in civil and criminal recoveries. Federal enforcement recovers a tiny share of what is stolen. Fraud that goes undetected never appears in the data.   That's only the tip of the iceberg. Medicare, the Supplemental Nutrition Assistance Program (SNAP), and many other welfare programs also suffer from massive fraud. The Affordable Care Act's (ACA) exchange subsidies provide another cautionary example.  A recent Government Accountability Office report shows that the fraud risks in the ACA's advanced premium tax credit remain severe a decade after they were first identified. The ability to gain subsidized coverage for fictitious applicants without providing required documentation, tens of thousands of Social Security numbers used for overlapping coverage, and more than $21 billion in subsidies never reconciled with tax filings are among the findings. Nonetheless, the Centers for Medicare and Medicaid Services has not updated its fraud risk assessment since 2018 and still lacks a comprehensive anti-fraud strategy.   It's tempting to treat the Minnesota scandal as a morality play about managerial incompetence. And yes, Gov. Tim Walz deserves some blame. When red flags persist for years across multiple programs, failure of leadership is part of the story. But focusing on a single official or state misses the deeper lesson.  The problem is not administrative capacity; it's incentives. Spending other people's money with little personal consequence for failure leads to a collapse of accountability, regardless of who's in charge. In addition, voters have limited incentives to monitor complex programs. Interest groups, by contrast, have strong incentives to organize around government spending.   None of this requires bad intentions—it's predictable human behavior flowing from predictable incentives—but it creates an environment for waste and fraud to take root."
If you don't want to relentlessly expand government programmes, you're a terrible person who has no "empathy" and if you're a Christian you're a hypocrite. If you want a pause while programmes are audited, you just want people to die

Big Labor's child care racket - "in the last 12 years, the number of child care workers has increased by about 33%, while the number of children ages 5 and under fell by 8.8%. The explosion of the child care industry has persisted even while the number of stay-at-home mothers has risen in recent years.   The story here is not just a matter of Somali fraudsters. It’s a much bigger story about special-interest politics boosted by ideology and masquerading as family policy.  For the past two decades, Democrats have been pumping billions of dollars into the child care industry at the behest of labor unions, who then use the state funding as a lever by which to unionize all child-care workers, including the unwilling.  These same unions, in turn, funnel this taxpayer money back to the Democratic politicians.  When you hear a Democratic politician say they want “universal child care,” or campaign on expanding “affordable, high-quality child care,” you should suspect that they are playing patronage politics with the labor union allies.   Minnesota’s raft of child care subsidies is just one example, but it’s a telling example.  Gov. Tim Walz (D-MN) was reelected in 2022, and his party took control of both legislative chambers — its first “trifecta” in a decade.  The margins were thin, but the party’s ambitions were great. It accomplished almost everything it set out to do. Liberals celebrated this as “the Minnesota Miracle.” The biggest thing they did was expand all sorts of subsidies for child care.  Politicians such as Walz painted this as a win for parents, but it wasn’t parents who crafted these policies and pushed them across the finish line.   Democratic Minnesota state Rep. Jamie Long explained the progressive approach: “You need good ideas. … You need elected politicians who are going to be supporting those ideas, and then you need outside organizing for elections and to support those votes.”  The Washington Post’s EJ Dionne elaborated: “All three are key to getting things done. In Minnesota, key players included unions, environmental groups and faith-based organizers in the appropriately named Isaiah organization. In the run-up to the session, the outside groups were brought into the task of crafting an agenda.”  That is, Democrats let the outside groups, including the unions, craft their child care policies.  It was telling that Democrats did this with a razor-thin majority. Their aggressive actions in 2023 should be understood in part as a strategic effort to build political strength: funnel more money to their political allies, which will help them win in two, four, and eight years.  Building their political power is explicitly the goal of these outside groups. Isaiah, one of the groups Dionne cited, has “Build Power” in its motto. Isaiah’s biggest project is a program called “Kids Count on Us,” which is a lobby effort to boost state subsidies for child care.   This is explicitly a supply-side project more than a demand-side one. As Kids Count on Us describes itself, “Providers, teachers, and parents organizing together.”  This is an industry lobby looking for more federal funds. The organization brags, “We won over $1 Billion in childcare funding in Minnesota.”  One item the industry won: increasing the amount the Child Care Assistance Program will pay to child care providers. Under the new law, the taxpayer would pay these subsidized child care providers well above the average going rate — specifically, equal to the 75th percentile.  In that 2023 session, the groups also lobbied successfully to extend special COVID-19-era direct payments to child care providers. Called the “Great Start Compensation Support Payment Program,” it is “designed to support the child care and early learning industry and workforce,” according to the legislature. It’s a $100-million-a-year subsidy directly to the industry. This money never goes to parents. It just goes to the businesses, and thus to the unions.  In that 2022 cycle, government unions, such as AFSCME and SEIU, spent more than $13 million on Minnesota politics, with almost all of the money going to Democrats.   A similar story has played out in other states.  Gov. Gavin Newsom (D-CA) in 2019 signed AB 387, which effectively transformed tens of thousands of child care workers into state employees for the purposes of union organizing...   This bill was crafted and pushed by a child care lobby called Child Care Providers United, a coalition formed by SEIU and AFSCME.  So, taxpayer subsidies were the mechanism by which day care workers became members of SEIU and AFSCME. These unions, which are very liberal and 100% aligned with Democrats, then tapped into these 40,000 workers as an organizing army and a source of funds — both of which were put to work for the Left.  As an added bonus, the unions often pocket money from unwilling child care workers.   “In several states, governments are automatically deducting a portion of Medicaid or other government aid from home healthcare and family childcare (day care) providers’ assistance checks and giving that money to government unions,” the State Policy Network reported. “Many providers are unaware this money is even being taken; others are aware but struggle to stop their state and union from skimming money from their checks; and some caregivers allege the unions and governments are fraudulently skimming the money.”  In Washington state, this little racket started much earlier. Since 2004, SEIU has been the bargaining representative for any licensed childcare provider that receives state money through the “Working Connections Child Care” subsidy. Of course, SEIU is “bargaining” with liberal state politicians who are spending other people’s money, and so it gets a lot of what it wants.
 In short, Democratic politicians create subsidies for day care for poor parents, the subsidies effectively turn day care providers into members of Democrat-aligned unions, those unions then lobby to expand these subsidies to pay above market rate, and to cover more families.  Meanwhile, most parents do not want formal child care. The Bipartisan Policy Center published a paper in 2022 asking “What Keeps Employed Parents Out of the Childcare System?” The answer: parents don’t want to be in the “childcare system.”  “More than half of parents would still prefer informal child care, even if formal care was free and convenient,” BPC found.   This is the consistent finding of polls and studies in the United States. Most parents would like to simply work less and thus take care of their children, and to the extent they need or want outside help, they would prefer informal, often unpaid child care, such as neighborhood babysitting co-ops or help from grandma.   But stay-at-home mothers and informal networks do not pump money into the system that allows the unions to grow and kick money back to politicians.  So if you wonder why Democrats’ only answer, when asked about family policy, is day care subsidies, just follow the money."

Strawberries and Balsamic - "Sorry, I could never be a capitalist, I suffer from “wanting humans to have their basic needs met” disorder, where I care about people who aren’t me."
"Someone once asked me if, assuming we got universal healthcare, I would be okay with the rise in “healthcare tourism” where people who are sick come to our country to get their medical bills taken care of and life-saving medical treatment cheaper than in their home countries. I was just like, yeah thats fine, I’d actually prefer it if 0 people died from preventable causes kept behind a paywall for no reason."
"“even the addicts?” yeah dude did i fucking stutter"
Of course, all this is paid for by "taxing the 'rich'"
And then left wingers keep claiming healthcare is "underfunded", when they want to treat the whole world for free

It’s Not Just Minnesota—Fraud Is Everywhere - "If you tried to steal a billion dollars from a bank, you would probably fail. You might even get shot for your trouble. But if you tried to steal the same amount from Medicaid, Medicare, or other federal safety-net programs, your odds of success are much better. Just submit phony bills, and the government will pay you.  That’s what Somali fraudsters did in Minnesota. They netted more than $9 billion, according to a top prosecutor. It’s an old trick that has worked thousands of times... frauds against government health-care programs are both common and costly. Fraudsters routinely scam CMS for billions of dollars. States themselves run schemes of their own. Covid-related frauds, for example, exceeded $280 billion, with another $123 billion wasted or misspent. Obamacare enrollment fraud is pervasive, likely costing taxpayers $27 billion in 2025 and $21 billion in 2024.  Fraudsters in Russia and other East European nations scammed Medicare for $1 billion over three years by submitting phony bills for durable medical equipment. Companies operating out of Connecticut, Florida, Kentucky, New York, and Texas pilfered about $2 billion by submitting phony bills for products like wigs for cancer patients and urinary catheters. Fraudsters who submitted bogus bills for orthotic braces, pain creams, and other items took federal health programs for more than $1 billion. CMS’s own estimate—“comfortingly low,” in the words of one professor—is that it made $87 billion in “improper payments” to fraudsters and people who provided insufficient documentation in 2024. The real number is likely double the official estimate; over the past decade, it totals more than $1 trillion in Medicaid losses.  State officials also engage in behavior that, while not technically fraudulent, is at least sketchy. Every year, 49 states (all but Alaska) use “provider taxes” to tap CMS for about $160 billion. Federal law says states should be raising this money themselves, but states use the “provider tax” loophole to evade this restriction. That’s one-sixth of total Medicaid spending. States can even divert some of the money to non-Medicaid purposes. Either way, each state that participates is effectively (if legally) stealing from taxpayers in other states. Further, when the federal government has repeatedly tried to constrain the provider-tax provision, states have created new workarounds and loopholes to keep the money flowing from the U.S. Treasury...   It’s politically risky to confront fraud, given how dependent states are on the dollars. Financial controls would also imperil payments to doctors, hospitals, and other health-care businesses, all of which together make a powerful lobby.  Public officials have had six decades to impose needed financial controls on Medicaid and Medicare. It seems unlikely they ever will. If we can’t fix them, we should remake these programs on the model of Social Security, a program harder for fraudsters to raid because it makes direct payments to beneficiaries. Giving money directly to consumers could also make health care better and more affordable by allowing market forces to work."

World Food Programme on X - "Enough food is produced to feed everyone on the planet. Yet millions of people struggle to feed themselves and their families. Learn why it's time to transform our #FoodSystems - for people, for the planet, and for our future."
ⓘ Dogs don't have thumbs on X - ""Is produced", passive voice The food just falls from the sky, and all we need is some super smart people at an NGO to tell us what to do with it"

Incidence, allocation, and efficiency costs of tenancy rent control - "Tenancy rent control limits rent increases for sitting tenants while allowing market resets at vacancy. When demand grows or household composition differs across segments, spillovers raise rents in the unregulated market. We study its general equilibrium effects in Switzerland, where a nationwide regime meets large spatial variation. Linking administrative records on all households from 2010-2022 to detailed unit data and market rents, we estimate a structural sorting model with heterogeneous preferences, correcting for selection and price endogeneity. Counterfactual simulations show unregulated rents would be 8-21 percent lower, with the largest drops in supply-inelastic cities. Older, lower-income, and less educated households gain most, while newcomers face higher entry rents. The policy reduces mobility and induces space overconsumption, generating efficiency losses."
I was told that rent control works in Switzerland

Rent Control - Clark Center Forum
Only 2% of economists agreed that rent control "had a positive impact over the past three decades on the amount and quality of broadly affordable rental housing in cities that have used them" (and none strongly agreed). When weighted by confidence, only 1% agreed. In contrast, we are told that 97% of actively publishing climate scientists agreeing that "humans are causing global warming and climate change" is a scientific consensus and that if you disagree, you are a "climate change denier".

Tuesday, March 24, 2026

Links - 24th March 2026 (1 - Housing: Canada)

Toronto's Housing Market Has Completely Fallen Off a Cliff : r/TorontoRealEstate - "Nope. Housing availability does this more. Which is on provinces and construction companies and corporate greed being uncontrolled. The feds play a part for sure, but we need immigration. The fault lays with the provinces for not approving affordable homes and allowing giant detached homes for prioritization. Its on construction companies and investors for only prioritizing building larger and larger homes no one can afford, regardless of immigration. The Feds under harper who dismantled the Fed. Housing oversight board whos job was to ensure enough housing was built vs population growth. The need for people to blame all of their problems on the feds while overlooking everything else has gotta fucking stop"
"Here's the Bank of Canada explicitly calling out insane immigration rates putting upward pressure on housing prices.
Here's the Bank of Canada's Monetary Policy Report calling out rapid and sudden population growth making housing more expensive.
Here's the Wallstreet Journal talking about the BoC and weighing on the ridiculous negative effects in regards to our housing situation based off the immigration policies of the federal Liberals.
'The fault lays with the provinces for not approving affordable homes and allowing giant detached homes for prioritization.'
Here's a report directly referencing that development charges (municipal fees) have gone up by almost 1000% since 2010.
And before the pearl clutching begins - here's the literal CMHC directly stating that these costs are passed down to the consumer."
Toronto's Housing Market Has Completely Fallen Off a Cliff : r/TorontoRealEstate - "Stats Canada disagrees with you.
   These results suggest that increased immigration and NPR inflows could create greater pressure on rental markets in larger municipalities and on ownership markets in smaller ones
https://www150.statcan.gc.ca/n1/pub/36-28-0001/2025005/article/00003-eng.htm"

Ontario is falling behind in new housing construction - "Residential construction in Ontario has been trending downward in the post-pandemic period. Understanding this decline requires a closer look at the composition of new housing. Much of Ontario’s recent construction, especially in cities like Toronto, has focused on multi-family dwellings, predominantly mid- and high-rise condominium and rental buildings. With weakening investor interest, tighter financing conditions and increased construction costs, the pipeline for such projects has become considerably thinner. In contrast, construction of single-family homes in Alberta’s major cities has been relatively strong. In fact, by October of last year, Edmonton had started work on more single-family homes in 2024 than Toronto, a city more than three times its size."
Clearly, we need to push for densification everywhere

Is this Normal in GTA? : r/toronto - "I’m in my early 30s, moving from Winnipeg to the Toronto area for work at the airport. Just looking for a simple room or studio to rent.  But yo… is this normal? • Landlords asking my ethnicity like it’s a dating profile. • One literally said they prefer vegetarians (bro, I just want a lease, not a salad). • They want a detailed credit report, never had to hand over my financial diary back in Winnipeg. • And some ads straight-up say certain ethnicities preferred… or not allowed.  So many ads straight up violate local & federal laws lol  I’m excited to move to Toronto, but wow… house hunting here feels like I accidentally joined a weird reality show.  Please just any good rental buildings near the airport that would be a great help"
"Look for buildings with professional landlords: Capreit Cando, Metcap, etc. Their indifference is a dual edged sword: they don't care about you enough to ask about race and religion. Downside, they also don't care when you complain."
Corporations should be banned from owning residential property

Abandoned silos, record rents, why are empty buildings everywhere while we scramble for housing? : r/SavingsCanada - "People need to stop using the word luxury.  All new builds are exactly that, new. They will command the price of today's land value, today's labour costs, today's material costs. Adding some stainless steel appliances or better flooring is an irrelevant cost compared to everything else.  You can't build new homes for cheap, building is expensive. Unless we fundamentally change the way we build, the only way to pay less is to get less or live in a worse location."

Canada shows Australia how to solve housing crisis - "Canada experienced an unprecedented immigration boom after the pandemic, which caused a record housing shortage... Canada’s housing shortage and rental crisis are easing.  Indeed, slower population growth has driven eight consecutive monthly declines in Canadian asking rents, which are tracking 3.3% below a year earlier... There are clear lessons here for Australia, where policymakers and the media continue to paint the housing crisis as a “supply issue”... NHSAC’s sensitivity analysis showed that if Australia’s population grew by just 15% less than forecast over the next five years, then the projected 79,000 housing shortage would turn into a 40,000 surplus."
This is the funniest thing I’ve ever seen : r/canadahousing
Of course, actually talking about the article would get you banned on the sub, since you're not allowed to talk about immigration

Condo that won’t sell: It’s about size, not location - "The slowdown we’re seeing right now is being driven largely by small units — what I’ll call “micro condos,” those under 600 square feet. In contrast, larger, family-sized condos — those between 1,200 and 1,600 square feet — are holding up better. We can see this clearly in the data.  Micro condos in the Toronto area currently have just under nine months of inventory. That means if no new listings came online, it would take 9 months to sell what’s currently on the market. Family-sized condos have only about five months of inventory. In other words, there’s nearly twice as much supply relative to demand in the micro segment.  This oversupply is also showing up in prices. Over the past two years, small condos have seen their average price fall by 13 per cent. Family-sized units, by comparison, are down just 8 per cent."
The fact that larger units are also down suggests that blaming investors for everything is stupid

Condo that won’t sell: It’s about size, not location : r/toronto - "The city of Toronto has so many regulations on building that the city is effectively centrally planned. The housing crisis is mostly a massive failure of local government not the private sector.  Look at this picture of Yonge in Toronto. Market forces aren't the reason high rises are clustered around subway stops but after 50m it's endless detached homes. That's a policy decision. Developers in Toronto know how to build mid-rise buildings, it's just the city has made it effectively impossible.  Development charges have gone up over 500% in the last 15 years. The city is literally disincentivizing building housing to prevent a minor property tax increase. That's not the actions of a city that actually cares about the housing crisis. Toronto wants to blame developers for their housing problems while doing everything possible to make building housing difficult.  This is not to say private developers are faultless, but all the major problems in building housing stem from the city. A public developer will face all the same issues as a private developer. The only potential benefit is they may have the political power to force the city to stop being so obstructionist."

Rents easing across most major markets but many tenants not feeling relief: CMHC - "Canada's housing agency says advertised rents in some major cities are easing due to factors such as increased supply and slower immigration... average asking rents for a two-bedroom purpose-built apartment were down year-over-year in four of seven markets... Vacancy rates are expected to rise in most major cities this year amid slower population growth and sluggish job markets, CMHC said."
Weird how greater supply and lower demand reduce "greed"

From Toronto to Vancouver to Ottawa: The housing slowdown Is spreading - "Canada’s housing market is facing a structural challenge with immediate and long-term consequences: housing starts in the country’s largest urban centres are slowing sharply, with no signs of a near-term recovery. The Greater Toronto Area (GTA) was the first to see significant declines, followed by Metro Vancouver and now Ottawa. The pattern is clear, and unless action is taken, other major markets are not immune and could follow suit. This is not a temporary pause or a market correction. It’s a systemic malaise — the kind that has every indication of deepening in the months ahead. At a time when Canada needs to double housing starts to meet demand, the numbers in many urban centres are moving in the opposite direction, undermining the ability for overall national progression. In Q1 2025, new and pre-construction home sales were down 89% in the GTA, 77% in Metro Vancouver, and 51% in Ottawa compared to the same period in 2022. Given the lag between sales and construction starts, housing starts are falling and will continue to do so. The outlook for new housing supply in these markets is exceptionally weak for the foreseeable future. The problem is not a lack of demand. Population growth continues, and the need for housing is acute. The issue is that delivering new homes, particularly in Canada’s largest cities, has become financially unviable. Elevated interest rates, escalating construction costs, and multiple layers of taxes and fees have pushed project viability beyond the breaking point. Developers and rental housing providers face a simple reality: they can’t deliver homes at a price the market can absorb. This slowdown carries significant economic implications. The housing sector is one of Canada’s largest employers, with over 90% of materials sourced domestically, and is a critical driver of GDP. In the GTA alone, 41,000 jobs and more than $6 billion in annual tax revenues for all three levels of government are at risk. Similar threats loom over Vancouver and Ottawa, while Calgary, Edmonton, and Montreal remain vulnerable should current market conditions persist."
Clearly, they just need to be less greedy and lose money building housing
The article doesn't even mention the shortfall in housing supply, which alone would be a reason to support building

A skeptic's take on the housing crisis: 'The developer is the good guy' - "“It turns out that the issue here is not the building, it’s the land under the building,” he argues. When a city allows for additional density, that changes the financial value of the dirt on the proposed building site. Thus, he reports, “If you go from allowing a one-storey building to allowing a 10-storey building, you get a 1,000-percent increase in the price of the land.” “So the market is really a market-per-square-foot of the building,” he explains, “and by adding density, it doesn’t change the value of that square foot. What it does change is the value of the land underneath that building.” “As the authorized use of land is increased,” Patrick elaborates, “the value of the land is going up and up and up, and it, unfortunately, goes up more or less in measure to what the market is allowing for that built price.” The increase in land values created by up-zoning and densification are not going to the municipality, Patrick suggests. “That’s what’s so tragic about it, about the whole thing,” he contends, “the policy makers are saying (and I think many of them actually believe it), that this will help the community and it’s actually harming the community. It’s really helping the land speculators.” And Patrick makes clear: The land speculator is different than the developer. “The developer is the good guy,” he says, chuckling. “They build a building. The building has social value. What doesn’t appear to have social value is the land, and the speculation part of it, which is preventing us from adjudicating land rights to the benefit of the community.”... Basically, we’re doing the wrong thing, Patrick concludes: “We’re going in and giving away land rights, hoping that that will lead to affordability. We shouldn’t do that, because it doesn’t work. But what we can do is give away land rights, insisting on affordability.”"

Meme - "The Bank of Canada says population correlates with increasing rent prices and decreasing vacancy rates"
"Chart 3-A: Strong population growth is supporting inflation in rental prices"
Weird. I thought it was supply restrictions, greedy landlords and the financialisation of housing. Why is the Bank of Canada so ignorant? They should have "zero tolerance for racism or xenophobia" because "Immigration is not the problem", "Debating immigration is a major distraction" and this is "dogwhistling"

Vancouver and Toronto outpace New York in home unaffordability. Here’s why - The Globe and Mail - "For years, some have argued that Toronto and Vancouver’s high housing costs are natural for “world-class cities.” But that logic collapses when New York and Boston – true global hubs – are more affordable.  Being world-class isn’t just about demand – it’s about wages to match. In Canada, incomes in Toronto and Vancouver lag far behind the soaring cost of home ownership...  Canada’s housing affordability began to diverge from that of the U.S. around 2007-08. In response to the global financial crisis, the U.S. slashed interest rates to near zero to stimulate the economy. Canada, though far less affected by the crisis, adopted a broadly similar approach... Monetary policy is only part of the story. The cities topping the unaffordability list – Toronto, Vancouver and Los Angeles – share two traits: sustained population growth and restrictive zoning.  Crucially, population growth alone doesn’t make housing unaffordable. Texas and Florida have seen some of the fastest growth in North America, yet their cities remain relatively affordable. The difference lies in regulation. Over the past decades, cities such as Toronto and Vancouver have imposed restrictive zoning and municipal red tape that choked supply. When housing can’t respond to demand, prices surge and affordability collapses."

Ottawa’s 'non-market' housing policies won’t work - "Mark Carney has a PhD in economics from Oxford but it seems he was in the stream where they didn’t cover prices, markets, scarcity or capitalism. The PMO news release describing Build Canada Homes — once you get past the obligatory bits for this government about “super-charging” and “catalyzing” — seems almost proudly un-economic. “Build Canada Homes will focus primarily on non-market housing.” The plan is to build “deeply affordable and community housing for low-income households.” And by using public lands, BCH will “take land costs out of the equation.” There’s a lot to de-catalyze in there. “Deeply affordable” presumably means really cheap. But the housing itself is going to be high-quality and BCH will prioritize “low-carbon materials, low-carbon technologies and efficient design” and “maximize Canadian resources.” I’m not exactly sure what that last bit means but you can be sure it will cost. In fact, an explicit goal is to “build an entirely new Canadian housing industry” (no hubris here!) with “high-paying jobs” across the country. There’s also going to be substantial overtime. The press release says — twice in the same paragraph — that Canada’s new housing industry will build “365 days a year.” Even on the Christian-settler holiday known as Christmas? On the other hand, frenzied building doesn’t start right away: for the time being BCH will “incubate” within government, “leveraging existing resources and expertise within the government’s housing toolkit.” They do a lot of “leveraging” in Ottawa: there are five different mentions of “leveraging” in the one release. And that’s a cute use of “toolkit” in the context, no? I’m guessing Ottawa’s housing toolkit doesn’t include such useful things as a wrench or a hammer. But if all the new housing is to be high-quality and sustainable, disdain foreign inputs and (you just know) be required to comply with all sorts of other federal rules and regulations, it will be expensive. When was the last time Ottawa did anything on-time and under-budget? D-Day? The housing will be “deeply affordable” to the people who will live in it only if it’s given away or permanently subsidized. But taxpayers will pay premium prices to make those gifts possible. By the way, will there be a lottery for the largesse? Or will distribution be subject to the usual rules about diversity, inclusivity and “majorities need not apply”? As for the bit about taking land costs “out of the equation” by using public land the government already owns, that’s just plug-ignorant. It’s a Lecture-One lesson in economics that accounting costs aren’t what really matter, “opportunity costs” are. The tracts of urban land the federal government is sitting on have substantial opportunity costs. Any number of private developers would make big offers to take them off the government’s hands... At the heart of economics is the idea that prices give you information about what things are worth. The more prices you deliberately ignore, the more decisions you make that don’t take the value of alternatives into account. It’s a good recipe for bad choices. At the heart of many economists’ approach to public policy is the motto: “Hard heads, soft hearts,” which was the title of a 1988 book by Princeton economist Alan Blinder — sub-head: “Tough-minded economics for a just society.” The homeless people who beg at red lights, offer to wash your windshield or populate the tent cities that are making the country’s downtowns increasingly unlivable usually seem to have much more serious problems than just absence of decent indoor accommodation. Housing problems — not being able to make the rent or mortgage payment — may have started their slide. But giving them a key to a spanking new all-Canadian sustainable modular home on which they pay nominal rent almost certainly won’t be enough to get them back to employability and solvency."

Jesse Kline: Carney's statist plan to fix the government-caused housing crisis - "Nearly six months after promising to “build twice as many homes every year,” on Sunday, Prime Minister Mark Carney followed the path laid out by virtually every other left-leaning politician in the country by launching a new government bureaucracy intended to increase the stock of affordable (read: socialized) housing throughout the country. You’ll be forgiven if you’ve heard this one before. Promising affordable housing is a favourite pastime of the federal Liberals, largely because most of the impediments to building new homes fall outside Ottawa’s jurisdiction. It’s far easier to spend gobs of taxpayer money and create giant new bureaucracies than to actually deal with the reasons why Canada’s housing supply has failed to meet demand. In 2017, the Liberals launched a $40-billion “National Housing Strategy” (NHS), which has since more than doubled in size, with the goal of building 125,000 new public housing units, refurbishing 300,000 and cutting homelessness in half within a decade. In the lead-up to the 2021 election , the government set aside an additional $2.5 billion to create 35,000 affordable units. And the 2024 budget and fall economic statement earmarked an extra $8.3 billion for various affordable-housing initiatives. How successful were these strategies? The proliferation of homeless encampments in our major cities clearly show that, eight years into its 10-year plan, the Ottawa isn’t anywhere close to cutting homelessness in half. Indeed, a report last year from Housing, Infrastructure and Communities Canada found that the homeless population increased by 20 per cent between 2018 and 2022. Counting the number of homeless people is notoriously hard. Quantifying the affordable housing stock should be relatively easy. But unfortunately, even that is too much to ask of this country. According to a 2024 report from the Canadian Housing Evidence Collaborative, “There is no official estimate of the size (absolute or proportion of total) for Canada’s social or non-market housing stock.” The government will brag that the NHS has “supported or committed to the creation of 134,707 new units and the repair of 272,169 units,” but how many of those have actually been completed is far less clear. Enter Mark Carney with his “ bold new approach ” to solving the housing affordability crisis: spending “unprecedented” amounts of money to fix the problem that the previously unprecedented amount of taxpayer-looted wealth failed to address. His government is launching a new federal bureaucracy — unimaginatively called Build Canada Homes (BCH) — with $13 billion in initial funding. At the outset, BCH intends to build 4,000 new affordable homes on federal land in Dartmouth, N.S., Longueuil, Que., Winnipeg, Edmonton, Ottawa and Toronto. But construction isn’t supposed to even get underway until sometime next year, and it could be years before any of those homes are occupied. To spearhead the new department, Carney tapped Ana Bailão , a former Toronto city councillor who was on the board of Toronto Community Housing and chaired the planning and housing committee. While the prime minister hailed her as a “seasoned leader with deep experience in affordable housing,” her track record on the file is less than stellar. According to data from the Low-end of Market Rental Housing Monitor , Toronto’s stock of non-market housing actually decreased during Bailão’s tenure on city council, from 77,742 units in 2010 to 72,143 in 2022. Even according to the city’s own numbers , half way through its 10-year plan to build 65,000 rent-controlled homes between 2020 and 2030, it has only completed 1,242. The city maintains a running tally of its progress toward its affordable-housing target, which shows that the vast majority of projects are stuck in the pre-planning and application-review stages. And herein lies the problem: even purpose-built government housing initiatives do not have the inertia necessary to cut through the mounds of red tape that municipalities have built up over the years. Conservative Leader Pierre Poilievre identified this problem long ago, promising to use the federal purse strings to coax cities into relaxing zoning rules and reducing bureaucratic overhead. By hiring a former city planner who presided over an ever-worsening real estate market to head the new housing department, Carney is virtually ensuring that it will be business as usual for Canada’s overbearing city councils. Worse still, this week’s announcement does nothing to increase the supply of market housing — the type that productive members of society aren’t forced to subsidize through their tax dollars. Based on promises made during the election, that plan is still to come, but it will also involve the BCH acting “as a developer” and require significant amounts of public funding. Carney has clearly failed to learn the No. 1 lesson of the past 10 years of Liberal rule: you can’t solve problems by throwing truckloads of money at them. If the $82-billion NHS failed to bring house prices and homelessness under control, it’s hard to see how the $13-billion BCH is going to fare any better."
Time to blame "Conservative" provincial governments
The left wing answer is always to spend even more money. Words speak louder than actions or results
But of course left wingers claim Carney is really a Conservative

Public backlash to 'gigantic' multiplex homes in Burnaby, B.C., has council scaling back - "Public outrage over the size of new multiplex homes popping up all over Burnaby, B.C., has convinced city councillors to rein in the rules around what can be built. Multiplex homes in the city will be smaller — and have more on-site parking — as a result. Burnab y, a city of about 250,000 residents just east of Vancouver, introduced multiplex housing in July last year, when the province mandated most B.C. municipalities to allow between four and six homes on single-family lots... O’Meara said he’s worried for people’s property values due to the visual impact on the neighbouring properties. Former B.C. MLA and Burnaby resident Kathy Corrigan said it’s true that she’s a “NIMBY” — “not in my backyard.” “I definitely don’t want it in my backyard towering over … four storeys high. No, I don’t want it in my neighbourhood,” she said."
Damn greedy investors and corporations keeping housing expensive!

Toronto neighbours fear huge tower may give them cancer and collapse their homes - "A local neighbourhood group is concerned about an approved plan to construct a 42-storey tower in their area, raising a long list of fears about the new development in an open letter shared earlier this month.  The group, which calls itself "Concerned Residents of Willowdale," has various concerns about the planned tower at 2810–2816 Bayview Avenue.  Among the group's fears, they claim that the construction of this new tower will put them at risk of a rare type of cancer and even the potential for excavation of the adjacent site to collapse their homes... "This decision overrides zoning laws, ignores health and safety risks, and sets a dangerous precedent for all Toronto neighbourhoods near transit," reads the email."

"Affordable" "Social" housing is a nightmare to live near : r/TorontoRealEstate - "I want to point this out for those who have never experienced it and think we should house our homeless/vulnerable population in cities. It's just not that simple, these people aren't homeless for the lack of a home and the solution to homelessness isn't affordable housing. You cause a nightmare for the whole neighborhood and ruin life for people/businesses in these areas, forcing them to move out and creating a ghetto. The government employees and social workers will make many promises that they will make sure it's good and then they will ignore how bad it gets and call you ignorant or a conservative if you complain.
Take this for an example
"Wildlife Thrift Store is on the corner of Granville and Drake, and its owners are calling for action after they say the staff turnover, stress, and financial costs have reached a boiling point.
“The last three years, our business has spent over $300,000 to cover the recent, mandatory costs of security guards and broken windows. This is a ‘new cost of doing business’ we have been forced to pay in order to keep employees safe and keep up with the ongoing damage to our building,” it wrote on Instagram.
“In 2021, The Howard Johnson Hotel on Granville Street was converted to house those experiencing homelessness, mental health and addiction — the EXACT demographic our business aims to help through regular quarterly donations and has in Vancouver for over 23 years now. All of those dollars 💸 COULD have gone/be going to the charities we benefit.”"
"BC Housing and the BC government bought the 110-room building at 1176 Granville Street for $55 million as part of an affordable housing project. At the time, it was announced that residents would include those who had been displaced by the clearing of the Oppenheimer Park encampment. However, the province had said it would eventually become affordable long-term housing."
Also to note, affordable housing represents a great opportunity for governments to reward backers. Note that the BC NDP is generally paying 1.5-2x or more assessed value for these hotels and is paying around $500k for an old hotel room. Hotel operators donated big to the NDP's campaign and they are getting rewarded. The BC government assessed 1176 Granville at $20 million today and it was assessed at the39M in 2021. That's 55M for 110 rooms ($500k/hotel room in 2021 for rooms built in 1911) and a loss of 35M going by BC assessment $318k/room. Donating to the NDP is the best investment you'll ever make."

Rustad Would Scrap Zoning Reforms, Keep Rent Control : r/britishcolumbia - "The hotels have been artificially limiting supply for years, and that’s a large part of why AirBNB became so popular throughout North America. I remember at a point when travelling in the US that I was saving hundreds of dollars per trip using AirBNB, particularly in California.  AirBNB is also what allowed me to move to BC and live cheaply for several months while I (a) wanted to see if I actually wanted to live here, and (b) looked for an apartment once I decided I wanted to stay long term. This was pre-Covid, but at that time the savings of an AirBNB over a hotel in Metro Vancouver was well over $1,000 per month. (Where I stayed would still be allowed under current regulations as it was a spare room in someone’s 2BR condo that they lived in)"
Rustad Would Scrap Zoning Reforms, Keep Rent Control : r/britishcolumbia - "Is it the hotels limiting supply or is it zoning?"
"Zoning. Even small cities need to plan for more accommodations throughout the community wherever commercial services are located. There's enough competition in the industry to take care of the rest."

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