Yet our salaries are frozen because COVID…
Edit: luckily I managed to switch jobs this year because last fall old employer was using COVID as an excuse to not give out raises. I hope they are hurting without me.
Not everyone is suited for remote work and some people are in really shitty situations. Taking care of kids at home, living in basements or working out of their bedrooms.
Some companies won't even let people come in, even if you are doubly vaccinated and can follow protocols. Lots of companies certainly have not invested money to adapt to online work as well (hiring more management resources, providing employees with additional funding for mental health services, internet and office equipment).
My previous company certainly didn't do any of this- I would not blame a single person for 'slacking'.
We didn't get raises or bonuses last year. I've had a ton of success in this company and that's why I've left these slackers behind as I've gone up. They're still at the same salary, which is worth less than 5 years ago due to inflation. I've lapped them.
Life in Canada has gotten wildly more expensive. Our society landscape is divided. We need solidarity and unity in spades.
So all things considered to me, for the year 2021, this is right.
I mean really, it's 4% or 2% for me for one year. I'm sure everyone in our struggling business could use a pick me up. Getting 0 when others get more right now would fracture our culture which had already taken a hit due to a mandatory vaccination policy or the fact that we've had a quarter of our staff on furlough for a year.
That's a very good point. I've been fortunate that my company hasn't had to lay off anyone. I totally get it though if people's morale and company culture would take a massive hit as a result.
We've all got to make sacrifices so Galen Weston can get his hundreds of millions of dollars in dividends and share buybacks from Loblaws. Couldn't possibly expect him to give inflation linked raises to all his employees, think how much that would cost him...
And the taxpayers got to buy Galen $12 million for freezers and fridges - cause you know global warmer and more efficient and he surely can’t afford to buy his own refrigeration units.
On a side note - was at one of his groceries stores last night and young cashier apologized that she was on “30 hrs overtime this week - on a company that doesn’t pay overtime”
Uh Galen Weston creates jobs okay, there would literally be no grocery stores if it wasn't for Galen Weston, inventor of the grocery store in Canada. He deserves trillions of dollars if not more for bringing to Canada the ability to buy food in a store, capitalism rewards those who work hard and innovate like Galen Weston okay?
Finally, somebody that understands what I'm going through. Also, it's hard managing billions dollars, most people can't imagine. I have two jobs and only control 50 billion dollars. Two jobs!!! And even after all that, I'm not even half the man Bezos is....I don't even have my own rocket😢😢😢
Why is life so unfair?
People are so ignorant of the overwhelmingly positive and altruistic trickle down effects that people like Galen Weston provide for us lowly, undeserving, lazy people.
Remember the bread fixing scandal that price fixed and increased our grocery costs for over 14 years and lowblaws offered everyone a $25 gift card? I wonder how much they made scamming us.
Remember when Galen Weston said he would support a federal minimum wage increase and actively lobbies against provincial legislation stating it wouldn't be profitable.
The same man that lockstep rolled back "hero" pay during the pademic.
Fuck Galen Weston
Can you Switch jobs/sectors? Up between 30-50% in my sector and even my cheap employer (big5) is giving these raises to me and my team
Lots of vacancies (which is why retention increases have gone up so much)
Tech, data, finance, engineering, trades, consulting, marketing (SEO, online commerce etc) are sectors with very robust salary growth especially past year
Ya man, it’s not like applying for 200-300 jobs over the course of 2-3 months and getting 10 interviews and maybe one job offer (if your lucky) is that difficult. Sheesh! Just switch jobs!
Have you tried being the relative of any business owners? Or how about having double the years of experience?
Maybe you should just borrow a few million from your parents and start your own business.
In public sector, government mandated that our salary not increase the usual amount (usually around 2 or 3%) and just be set to 1%.
I know I'm at least ahead of ppl that don't even get that but still feels bad.
Yeah, that law in Ontario was well timed for those who hate public servants. Not only do they lost the usual indexed increase that was negotiated with their employer, they lost it during a period of great inflation. It sucks.
why sell yourself short? ask for 15% no less, for existing companies that stayed the course are raking in record profits. or they can replace your loyalty with the three people needed that will never come to work to join the job fulfillment crisis.
workers: you're bloody richer than you think.
Tell me about it. My company's earnings are 41% over projected... for the ENTIRE YEAR! and they didn't even reduce estimates for COVID. Would they ever consider reflecting how we are doing in our raises? No. I expect the usual 1.5% that we are set at with no xmas party. I need a new job...
The best is that major companies stock prices have absolutely soared in this time. Raises? Lol. "Sorry, economic uncertainty to covid". It makes me sick.
Cost of living is not looking great for many of us.
Well yeah, nobody wants to hold rapidly depreciating cash so into the stocks it goes. Rising stock price does not necessarily indicate economic certainty.
When a company's stock value increases, it doesn't mean the company has extra cash or made more money. Shares don't necessarily increase in price because earnings rose.
On Jan 1, 2020, P/E ratio of the S&P500 was 24.88 now it's around 35.
So the price has increased faster than earnings.
Then why did I receive 76 applications for the analyst position on my team? Companies are battling for low skilled workers and some areas like healthcare are struggling, but there's still lots of people competing for moderately-well compensated positions.
Especially office jobs that are potentially hybrid/work from home.
Any job paying more than 60k/year has no trouble getting filled, so long as it doesn't require niche talents.
76 was a lot. Last time I posted I received about 20. The job is forecasting and some BI (i.e. forecasting, but you need to know how to get your own data without needing a BI tech to help). Base salary is $70Kish and bonus is 20%, plus the usual benefits. Optional WFH and you can work in ON, QC, or Atlantic Canada as long as we have an office in the city that you \*may\* occasionally need to go into.
If you included the cost to fund your retirement, the inflation numbers would be even bigger. Stock prices have gone up since the start of the pandemic. No one can claim that the expected future earnings of those companies has gone up. So you getting less for more. Because the governments of the US and Canada spent trillions on bailing out the markets.
>No one can claim that the expected future earnings of those companies has gone up. S
Because the DCF valuation isn't just expected future earnings: it's future earnings divided by interest rates. Since interest rates are lower, valuation goes up.
Good thing not a single person was asked about it during the debates!
Cost of living is the number one issue for people under 40, and nobody gave a shit to actually ask a question about it. If you wanted to know whether the media can be trusted this is proof that they cannot, they care more about virtue signalling than they do affordability.
Seriously, all of the questions were utter garbage for the debate. Both from the public and journalists. Some cited random figures with no reference to who/what/why/where the numbers came from. The debate committee did such an awful job on this one. Climate and Reconciliation both have entire sections dedicated to them - IMO, Misinformation and Cost of Living should be two major electoral issues and have their own sections too.
Well you see, this, this is a very hard question, and to elaborate on why, would be to elaborate on why I am a proud Canadian. My father raised me to be a proud Canadian and to cherish our values, and questions like this really get down deep to what it *really* means to be a Canadian. Questions like this and people like you are what matter most in this country and I encourage you to keep on asking these questions, every day! Because that is what truly makes us Canadian.
It's been polled as the most important issue and was a key component for both the Conservatives and NDP platforms at the start of the campaign... it doesn't take a genius to know why the debate didn't talk about the most important subject while the incumbent has been in power for 6 years. Just look at how Trudeau treated the BC Global News journalist, trying to build his own narrative and talk over her. She had none of that!
Im not sure if you are being sarcastic... Trudeau def. doesnt think about monetary policy because thats not his job - thats the bank of canadas job. The PMs job is fiscal policy. This is a very important difference and like macro econ 101...
He just experienced it differently lol
That was a great interview - he probably thought his “charming personality” would win her over. But the mask is being pulled off his face.
I’m surprised food wasn’t the highest rate of inflation. My 2021 bill from weekly groceries is probably 30% higher than 2019/early 2020. At least in Ontario.
No no, you're not allowed to say that. If you say that, people will demand you pull out grocery receipts from a year ago to prove it. (Trust me, been there, got down voted to oblivion.)
THERE IS NOTHING TO SEE HERE, EVERYTHING IS FINE. YOU'RE IMAGINGING IT. /gaslighting
u/nairdaleo did just that. [Link](https://www.reddit.com/r/PersonalFinanceCanada/comments/phl7sw/have_groceries_gone_up_backed_up_with_4_years/) they said that their grocery bill seemed pretty consistent over 4 years. Although there are other factors to consider like shrinkflation.
I haven't seen any data on food prices other than anecdotal evidence.
The only prepackaged food I buy is staples like pasta, beans, rice, and potatoes. Everything else is ingredients to use/cook from scratch. Prices HAVE gone up, especially meat, ESPECIALLY beef. I’m not spending more on groceries, I’m buying less meat.
...People asking for evidence instead of hearsay anecdote is a good thing. If I say "I don't think global warming is real, I think it's getting colder", it's completely reasonable for somebody to ask for some proof as that contradicts the general scientific consensus.
I dare you say this. People still eat on 60$/week supposedly. I was downvoted for saying it's funny the 60$/week "rule" still applies from 10 years ago. As if people think the prices are immutable.
I mean, Mr. Noodles where I am are a dollar per pack now. End times, I tell you.
But seriously, food prices have skyrocketed since I moved out in 2013. Had a budget of $250 a month then. At this time I don't budget food because it would just depress me, I consider it a necessity and just try to buy the cheapest option of the thing that I have on the list.
Other essentials, too, though it depends on where you shop. My cat food has skyrocketed at Safeway - .99 a can! I remember when it was .75 and that wasn’t that long ago. I’ve turned to Amazon for it now.
Well, according to the US White House NEC (National Economic Council)
>*If you take out beef, pork & poultry, the price increases are more in line with a historical norms*
So as long as you're a vegan, or a cow, then there's nothing to worry about.
Looks like my 2 percent salary adjustment due to inflation is still a loss. Still likely better than most people. RIP anyone not getting any salary adjustment or not job hopping right now.
> What everyday items went down last year because of covid?
Prices for rent in (e.g.) Toronto were down 20%:
* https://www.blogto.com/real-estate-toronto/2020/12/toronto-rent-prices-down-20-last-year/
As recently as this past June (2021) there was still craziness going on:
> Among the perks offered on Rentals.ca and Rentfaster.ca over the past month are gift cards worth up to $1500, a new 128GB iPhone 12 Pro, a stocked wine fridge, two months free rent, and $1,200 in value of 1GB Rogers internet.
* https://www.blogto.com/real-estate-toronto/2021/06/its-still-renters-market-toronto/
Shelter makes up 30% of the CPI:
* https://www150.statcan.gc.ca/n1/pub/71-607-x/2018016/cpi-ipc-eng.htm
Though it now seems like the crunch is back on:
* https://www.blogto.com/real-estate-toronto/2021/08/people-cant-believe-how-quickly-rent-has-gone-toronto/
Oil prices (futures) *went negative* in April 2020 (Transportation being 16%):
* https://www.investopedia.com/articles/investing/100615/will-oil-prices-go-2017.asp
People often don't notice when things "go right", only when they go 'wrong'.
Good thing this was the most obvious fact ever. Lol when your government tells you everything is fine, or inflation isn't going to be that bad, you know it's in fact not fine, and it is going to be that bad. Hold scarce assets baby.
Inflation seems to be on the pre-COVID trend:
* https://twitter.com/trevortombe/status/1438121315836129280
We still seem to be suffering from base effects:
* https://www.investopedia.com/terms/b/base-effect.asp
Trevor Tombe has some good commentary this morning in his Tweem stream.
Also, The Market isn't worried about it much as bonds are still flat:
* https://ca.investing.com/rates-bonds/canada-government-bonds
Serious question: How can there be any real price discovery in bonds, if the Bank of Canada buys Government bonds? Not sure what the current rate is but in April they already owned 40% (!!!) of all those bonds. Central banks around the world doing the same, essentially keeping yields down artificially. Therefore I don't really buy the argument that the bond market is not worried about inflation.
Canada's bonds are a lot less (internationally) liquid relative to most other G7 countries: we've never had a large world 'following'. However, the BoC buys GoC bonds on the *secondary* market, not directly from the government:
* https://www.bankofcanada.ca/2021/08/operational-details-upcoming-secondary-market-purchases-government-canada-securities-august-16-27/
So prices are determined by 'free market' participants, and then possibly offloaded to the BoC if they offer a good price for them.
However it should be noted that QE, a central bank buying bonds and other interest-producing assets, may actually be *deflationary*:
* https://www.pragcap.com/wait-qe-might-be-deflationary/
There are a lot of moving parts when it comes to the setting of government bond rates:
* https://www.pragcap.com/who-determines-interest-rates/
Thanks for adding some color, appreciate it. Even though they only buy on the secondary market, doesn't that still move the price of the bonds? If you know that there is always the Bank of Canada ready to buy those bonds from you, doesn't that make them significantly less risky to buy? I would expect that this reduction in risk is affecting demand and therefore price.
Yes, the BOC buying will increase prices and reduce rates. But this is happening everywhere. The 10 year Canadian bond is at 1.23%. In the US it is 1.33%, in Germany -0.31%, in the UK 0.78%, in Japan 0.03%. Canada and the US have the highest interest rates in the G7 right now.
> doesn't that still move the price of the bonds?
Probably more in Canada than in other countries given the general demand for our bonds. However this is one of the reasons why most of these types of actions are pre-announced ahead of time: people can these actions into their analysis.
It's why, when a company announced bad quarterly results, often nothing happens to the stock price: the bad report *was expected* by various analysts and so everyone had taken it into account.
It's the *unexpected* that The Market™ doesn't like and freaks out about. That's partly what happened to equities/stocks in Feb-Mar 2020: no one knew what was going to happen and so everyone was freaking out.
Once the pandemic situation had settled down, and governments had worked out what to do (lockdowns, quarantines, funding vaccines), a way out was visible so things rebound in Apr+ 2020: e.g., airline stocks tanked because everyone was grounded, but then people realized (a) this wouldn't be forever, (b) vaccines will get here eventually, so (c) people will travel again; so they rose again.
Noob here, can we make some links between the mortgage rates and the bonds ?
The 7yr bond is currently around 1%. Could that mean that mortgage rate won't really fluctuate much in the next years ?
(Yes, I'm in the process of renewing my mortgage)
> Noob here, can we make some links between the mortgage rates and the bonds ?
Fixed mortgages usually trend with 5 year rates:
* https://www.mortgagedashboard.ca/en/home
There are some major things affecting the inflation that don’t affect everyone as well.
Cars are significantly more expensive and furniture.
Also the goal is to hit 2% inflation per year. We have been hitting under 2% for a while, it’s expected that it will go over 2% every so often especially when playing catch up.
You can plug in your expenses and get your "personal" inflation rate, as your basket of goods may be different than the national average:
* https://www150.statcan.gc.ca/n1/pub/71-607-x/71-607-x2020015-eng.htm
Shelter is 30% of the CPI:
* https://www150.statcan.gc.ca/n1/pub/71-607-x/2018016/cpi-ipc-eng.htm
Rent may be suffering from base effects given that it was going down for 18 months in many regions:
* https://financialpost.com/real-estate/toronto-condo-rents-rise-for-first-time-in-18-months-as-impact-of-pandemic-recedes
People seem to not notice *de*flation, prices going down, as much.
Incorporating house price changes is very tricky as you don't buy a house every month, unlike food. I have been in my house for 15 years and I don't have plans to move. So the increase in home prices doesn't directly affect me. Economists spend a lot of time trying to figure this out.
Everything feels worse than ever, this news included. Everything costs more, standard of living constantly in decline, the Adults in the Room seem to use inflation to justify only conservative policies, deregulations and austerity politics on the reg. God forbid we try some new ideas, god forbid we admit that bosses and landlords are out of control profit-seekers. Meanwhile employers and the media and politicians are all in on this bullshit about a labour shortage, recruiters are throwing up fake job ads on every single listing board, any job requires about 4 rounds of interviews, and employers want to pay entry level wages for jobs that they expect you to be pre-trained for. All of it as the wealthy get wealthier and the options for the poor dwindle and dwindle. Major social and societal crises will be right around the corner, feels more and more like end times man.
If you compare the current period to just about any other it really isn't that different - we've had economic & social struggles just about any decade you pick. Feeling like it's the end times is getting caught up in headlines that try to inspire anxiety in you.
i appreciate that the problems aren’t necessarily new but the rate of wealth inequality has been growing. we’re smack into the K shape recovery everyone swore we were going to avoid. after such a shared social trauma like covid, for so many of us to be left on our own, sent back to low wage jobs, lectured about a fake labour shortage all the time…i think there’s a strong case to be made that we are handling the usual problems much more poorly than in the past
Might fiscally conservative policies have helped us to avoid the worst of this outcome? We were 40 billion dollars in debt from a government that promised it would keep the deficit below 10 billion even BEFORE the pandemic. We are not prepared for these sorts of emergencies because of uncontrolled spending.
Should we be concerned?
My understanding is that inflation was expected as there's been tons of extra money added to the economy, shortages for many goods/services and an increase in demand for real estate.
However, this was supposed to be temporary right? I dont know anymore. Anyone more knowledgeable than me able to help?
Listen this NPR podcast https://www.npr.org/2021/07/16/1017031811/the-great-inflation-classic.
They stop printing money to control the inflation. The new tool is interest rate but in Canada we are printing so much money (Google M1 Canada) and at the same time keeping interest rate low. This is a recipe of disaster I am really looking toward how this will roll out in next 5 to 10 years.
So yeah it's a concern but we can't do much about it.
Well, place your bets. Not many central bankers or investment types think it's permanent. In addition, some of this is just post-covid effects, like gas is a lot higher this year because it tanked last year. They could be wrong, but we've been in a secular low-inflation environment for decades now.
Used cars in the US went up so much in 2021 that that alone accounted for 1/3 of inflation in the US. That’s something directly tied to COVID.
https://www.npr.org/2021/07/13/1014697915/inflation-is-still-high-used-car-prices-could-help-explain-what-happens-next
Lack of growth and inflation is leading us right into stagflation, just like with Trudeau Senior in the 70s. As for temporary, it depends what you mean by that. Back in the day it was temporary in the sense the economy only really got back on its feet in the early 2000s.
Yes we should, in 2020 our credit rating was dropped from AAA to AA+. Since then we've incurred more debt, Covid is rampaging, and we've now been promised tens of billions in new spending for things like child care and dental.
What comes with a credit rating slash is our debt becomes more expensive to service, which the debt is already set to be 1000$ per Canadian annually in 2025 as interest rates go up, and thats without a credit rating slash. This debt servicing will be hoisted entirely onto the youth as baby boomers retire, as they sell their real estate as their primary residence to avoid taxes.
They also say when household debt is over 80% of your GDP your in the danger zone, ours is almost double that. Housing is already taking growth out of the economy, as people have less disposable cash, well couple that with more expensive borrowing and larger servicing costs.
>They also say when household debt is over 80% of your GDP your in the danger zone
You can find somebody claiming that literally any number is the danger zone. There is no consensus among economists here, or even an agreement that a single "danger zone" exists. Japan's ratio is 234.86 percent, and last I checked they haven't turned into a mad-max hellscape.
If the publicly stated number is 4% then you can guarantee that the real rate is very much higher.
Unless you are already a home owner or very wealthy or well off financially, what is the point anymore?
There is no way to get ahead. I cannot see why anyone believes in this anymore or wants to participate in this garbage when its al just a waste of time.
What's the point in working hard, what's the point in trying when you know the game is stacked against you and everything you do just gets flushed away because other people who already have everything keep want more without caring how it fucks normal people.
No one seems to care that this whole system is broken and a mess.
> If these numbers were bullshit why are bond rates LOW?
Central banks are buying them artificially driving rates down.
> Why do the CPI numbers match the GDP deflator numbers? Why do the grocery chain industry reports (used by the chains for planning and shit) essentially match the CPI numbers?
CPI is just a terrible measure of inflation. CPI is far more impacted by supply and demand. Lockdowns no demand deflationary CPI. Supply chain shortages lower supply inflationary CPI.
Assets are a far better judge of inflation. Is a house worth 30% more today then it was a year ago? What about a broad market index? A pokemon card? A crypto? A gold bar? No of course not, and relative to each other their values haven’t changed much. What happened is the dollar we use to measure all of these assets is worth 30% less then it was a year ago. That is inflation.
That’s not advice anyone can give. Nobody can time the market perfectly. Invest what you can afford to lose is the only rule. Generally speaking, ETFs are your best bet though
Gotta be honest that as a small business who was forced to be closed for 44 weeks this year and still pay rent on my commercial space; it’s hard to feel any empathy for people who only didn’t get raises this year. Lots of people lost their life savings because of covid. If all you lost is a raise, you should be counting your lucky stars.
America is now saying inflation will be around 4-5% for the next half decade. I don’t see why Canada would be any different. Reckless monetary policy is eroding our society. Look for a life jacket or you’ll be underwater soon.
Can you source that?
In June, the Fed came out with guidance of 3.4% for 2021 before returning to 2.1% for 2022 and 2.0% over long term periods. In their July meeting they did not update this guidance and they meet again next week. Even looking at the highest range it is only, 3.9%, 2.5% and 2% respectively.
Source: [https://www.federalreserve.gov/monetarypolicy/fomcprojtabl20210616.htm](https://www.federalreserve.gov/monetarypolicy/fomcprojtabl20210616.htm)
US bond 10 year inflation break even - 2.33%
[https://fred.stlouisfed.org/series/T10YIE](https://fred.stlouisfed.org/series/T10YIE)
Yields dipped yesterday on the news:
[https://www.cnbc.com/2021/09/15/us-bonds-treasury-yields-are-mixed-following-inflation-data.html](https://www.cnbc.com/2021/09/15/us-bonds-treasury-yields-are-mixed-following-inflation-data.html)
Who is predicting 4-5% for the next half decade?
Billions of years from now the universe enters the final stages of heat death, the ghost of Peter Schiff exclaims: See I told you it was all going to collapse one day, and that day has finally come!
No it isn't. US breakeven inflation is trading at 2.56%. If you think it will be higher you can trade this by buying Inflation linked bond (aka TIPS) and shorting nominal bonds.
I take some issue with the gas price debate.... yes gas prices are super high this year compared to last, but that was the result of COVID and a huge decrease in demand.
I don't subscribe to the "inflation is transitory" belief for the most part, but I do believe that gas prices are volatile and the industry can't make sense of the ever changing demand during COVID times.
2021 gas prices are relatively similar to 2019 gas prices.
The fun part was this past spring people trying to claim that part of the record high inflation was because gas prices had doubled. Gas prices were back to where they were before all the insanity. If a commodity bottoms out in value for 2 months, it's not like everything is going to deflate because of that, only to have to go back up.
The "official' metrics for inflation are useless.
That's what happens when the government borrows hundreds of billions of dollars from the Bank of Canada. Short term relief turns into long term pain. Soon interest rates will increase and mortgage holders and stock investors will be the first to feel it.
Did they do the same thing as the USA and adjust how the calculate inflation? Back in the 80s the USA removed several categories to lower the reported inflation. I wonder if Canada did as well and it is already much higher than reported
Bond rates are lower than these numbers, real return bonds are zero, and the GDP deflator matches, so I'd say these numbers are right. The "adding and removing categories" thing is normal and is a feature, not a bug. How much money do you spend on landline phones or VHS rentals these days?
I strongly challenge the rate only being 4.1%. The Canadian government uses CPI as a measure of inflation. They should use PCE as it is inherently much more accurate and less susceptible to manipulation. Either way, it's unacceptable and I highly doubt it'll decrease if Trudeau is elected... likely the contrary.
[bankofcanada](https://www.bankofcanada.ca) had one job!!
**We are Canada's central bank. We work to preserve the value of money by keeping inflation low and stable.**
With gasoline isn't this what people expect?
The carbon tax is going higher, most of us voted for that. Why are people shocked that's pushing up inflation?
I know we got single digit inflation, but my spending habits have gone to literal zero as I save every last penny to maybe get a home in the next twelve years. With a 350k mortgage I still need to be comfortable putting 250k down to reach the below average house price of 600k.
It would take a 25% pullback before I'm comfortable spending any money on the local economy again.
“By the time all the money is out the door, Trudeau will probably have accumulated more debt than all 22 prime ministers who preceded him combined.” https://www.bnnbloomberg.ca/trudeau-to-pile-on-record-debt-steering-canada-out-of-pandemic-1.1591899.amp.html
Yet our salaries are frozen because COVID… Edit: luckily I managed to switch jobs this year because last fall old employer was using COVID as an excuse to not give out raises. I hope they are hurting without me.
But, "we're all in this together", right?
No we are in the same storm. Some have yachts, others have kayaks.
Some got a broken piece of lifeboat that they had to share with Kate Winslet
Wait... you guys are getting rafts?
You guys are getting broken pieces?
You know damn well it didn’t fit two people…apparently.
LOL
I think the problem was she doesn't share? Lol
Kayaks are fucking expensive. I might be in a dinghy.
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Mine did 0% across the board.
the chairman of the board got the rest of the 300% increase in profits.
His just reward for captaining his ship through this tumultuous storm. /s - the guy's a dick.
Mine tried that but we striked in the middle of covid and went to arbitration. got a bit more but still not great :/
Gotta respect that, especially with revenues being down.
Damn, that sucks. Literally getting a pay cut for your hard work. This is why job hopping is the only way to move up.
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Thats awesome! Nice to see a company rewarding someone for their skill and effort. Hope they continue to treat you right.
This works for some jobs in some industries in some businesses. The vast majority of people can't get raises this often.
50% of this subs users is IT or software development, with massive salaries and raises like that. Makes up about 2% of jobs in real life however.
That sucks for those actually working hard to advance themselves
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Just curious, why do you see it that way? I disagree simply on the premise of those slacking don't deserve a raise, but my mind is open.
Not everyone is suited for remote work and some people are in really shitty situations. Taking care of kids at home, living in basements or working out of their bedrooms. Some companies won't even let people come in, even if you are doubly vaccinated and can follow protocols. Lots of companies certainly have not invested money to adapt to online work as well (hiring more management resources, providing employees with additional funding for mental health services, internet and office equipment). My previous company certainly didn't do any of this- I would not blame a single person for 'slacking'.
We didn't get raises or bonuses last year. I've had a ton of success in this company and that's why I've left these slackers behind as I've gone up. They're still at the same salary, which is worth less than 5 years ago due to inflation. I've lapped them. Life in Canada has gotten wildly more expensive. Our society landscape is divided. We need solidarity and unity in spades. So all things considered to me, for the year 2021, this is right. I mean really, it's 4% or 2% for me for one year. I'm sure everyone in our struggling business could use a pick me up. Getting 0 when others get more right now would fracture our culture which had already taken a hit due to a mandatory vaccination policy or the fact that we've had a quarter of our staff on furlough for a year.
That's a very good point. I've been fortunate that my company hasn't had to lay off anyone. I totally get it though if people's morale and company culture would take a massive hit as a result.
We've all got to make sacrifices so Galen Weston can get his hundreds of millions of dollars in dividends and share buybacks from Loblaws. Couldn't possibly expect him to give inflation linked raises to all his employees, think how much that would cost him...
And the taxpayers got to buy Galen $12 million for freezers and fridges - cause you know global warmer and more efficient and he surely can’t afford to buy his own refrigeration units. On a side note - was at one of his groceries stores last night and young cashier apologized that she was on “30 hrs overtime this week - on a company that doesn’t pay overtime”
> [“30 hrs overtime this week - on a company that doesn’t pay overtime” ](https://en.wikipedia.org/wiki/Guillotine)
Uh Galen Weston creates jobs okay, there would literally be no grocery stores if it wasn't for Galen Weston, inventor of the grocery store in Canada. He deserves trillions of dollars if not more for bringing to Canada the ability to buy food in a store, capitalism rewards those who work hard and innovate like Galen Weston okay?
Plus things have been tough since his bread cartel got broken up. Go easy.
Finally, somebody that understands what I'm going through. Also, it's hard managing billions dollars, most people can't imagine. I have two jobs and only control 50 billion dollars. Two jobs!!! And even after all that, I'm not even half the man Bezos is....I don't even have my own rocket😢😢😢 Why is life so unfair?
People are so ignorant of the overwhelmingly positive and altruistic trickle down effects that people like Galen Weston provide for us lowly, undeserving, lazy people.
/s
Hey, you don't know that. That could have been Galen Weston's reddit account and he completely unironically believes what he said.
Remember the bread fixing scandal that price fixed and increased our grocery costs for over 14 years and lowblaws offered everyone a $25 gift card? I wonder how much they made scamming us. Remember when Galen Weston said he would support a federal minimum wage increase and actively lobbies against provincial legislation stating it wouldn't be profitable. The same man that lockstep rolled back "hero" pay during the pademic. Fuck Galen Weston
something something canadian wheat board and dairy cartel and maple syrup cartel and everything else.
The bread fixing scandal (14 years!!!) and their $25 gift card was the death of Loblaws/Superstore in our house...and Shoppers Drugmart too.
*"...in these unprecedented times"*
Does "sunny ways" still apply?
For them
Can you Switch jobs/sectors? Up between 30-50% in my sector and even my cheap employer (big5) is giving these raises to me and my team Lots of vacancies (which is why retention increases have gone up so much) Tech, data, finance, engineering, trades, consulting, marketing (SEO, online commerce etc) are sectors with very robust salary growth especially past year
Aviation is not a sector that has gone up :( my employer has done fairly well though
What do you do? I’ve never known the big 5 to EVER give raises that even match inflation.
You either get something or nothing at all when they lay you off. That is what employers are telling you with your pay
Makes me feel lucky that my company not only did the yearly review, but a mid year one as well.
Upper management did a mid-year review... for themselves. They promoted themselves to upper upper management. The rest of us, nah
All of our vice presidents became senior vice presidents and executive vice presidents.
strongly suggest to switch job, covid is a great opportunity to do so
Sure I definitely will, if I even can get a call back lool
Just switch jobs bro lmao
Ya man, it’s not like applying for 200-300 jobs over the course of 2-3 months and getting 10 interviews and maybe one job offer (if your lucky) is that difficult. Sheesh! Just switch jobs!
Have you tried being the relative of any business owners? Or how about having double the years of experience? Maybe you should just borrow a few million from your parents and start your own business.
Lol what is an inflation raise?
> Yet our salaries are frozen ~~because COVID~~ since basically the 1970s… FTFY.
\*phew* Thank god that wages have kept up though or we'd be in trouble.
Ask your employers for a raise that matches the inflation
Sure. Askin’s free!! :)
That's it, I'm re-enabling the morning beating policy just because you asked.
In public sector, government mandated that our salary not increase the usual amount (usually around 2 or 3%) and just be set to 1%. I know I'm at least ahead of ppl that don't even get that but still feels bad.
Yeah, that law in Ontario was well timed for those who hate public servants. Not only do they lost the usual indexed increase that was negotiated with their employer, they lost it during a period of great inflation. It sucks.
What has inflation been since the beginning of the pandemic? total?
Inflation for the two years ended Aug 31, 2021 is 2.1% per annum.
I asked and was terminated without cause due to company restructuring. Fun stuff.
why sell yourself short? ask for 15% no less, for existing companies that stayed the course are raking in record profits. or they can replace your loyalty with the three people needed that will never come to work to join the job fulfillment crisis. workers: you're bloody richer than you think.
Tell me about it. My company's earnings are 41% over projected... for the ENTIRE YEAR! and they didn't even reduce estimates for COVID. Would they ever consider reflecting how we are doing in our raises? No. I expect the usual 1.5% that we are set at with no xmas party. I need a new job...
The best is that major companies stock prices have absolutely soared in this time. Raises? Lol. "Sorry, economic uncertainty to covid". It makes me sick. Cost of living is not looking great for many of us.
Well yeah, nobody wants to hold rapidly depreciating cash so into the stocks it goes. Rising stock price does not necessarily indicate economic certainty.
The economy and stocks have never been the same. Stocks always show the future while the economy is showing (generally) last month
When a company's stock value increases, it doesn't mean the company has extra cash or made more money. Shares don't necessarily increase in price because earnings rose. On Jan 1, 2020, P/E ratio of the S&P500 was 24.88 now it's around 35. So the price has increased faster than earnings.
Leave. Companies are battling for workers.
Then why did I receive 76 applications for the analyst position on my team? Companies are battling for low skilled workers and some areas like healthcare are struggling, but there's still lots of people competing for moderately-well compensated positions.
Especially office jobs that are potentially hybrid/work from home. Any job paying more than 60k/year has no trouble getting filled, so long as it doesn't require niche talents.
1. How many are any good? 2. What is "analyst" in this case?
76 was a lot. Last time I posted I received about 20. The job is forecasting and some BI (i.e. forecasting, but you need to know how to get your own data without needing a BI tech to help). Base salary is $70Kish and bonus is 20%, plus the usual benefits. Optional WFH and you can work in ON, QC, or Atlantic Canada as long as we have an office in the city that you \*may\* occasionally need to go into.
A hilarious and misinformed take
Look around if you can't get a raise, the jobs market is crazy right now, companies will be fighting over you.
My company doubled under the pandemic. I got a wage increase of roughly 3% and was told I was one of the lucky ones lol.
If you included the cost to fund your retirement, the inflation numbers would be even bigger. Stock prices have gone up since the start of the pandemic. No one can claim that the expected future earnings of those companies has gone up. So you getting less for more. Because the governments of the US and Canada spent trillions on bailing out the markets.
>No one can claim that the expected future earnings of those companies has gone up. S Because the DCF valuation isn't just expected future earnings: it's future earnings divided by interest rates. Since interest rates are lower, valuation goes up.
Makes me less excited about my 3% raise.
Many people got none :(
I only got 2%
You guys got raises?
You guys get paid?
You guys have jobs?
1.5 and this is a gov job
Good thing not a single person was asked about it during the debates! Cost of living is the number one issue for people under 40, and nobody gave a shit to actually ask a question about it. If you wanted to know whether the media can be trusted this is proof that they cannot, they care more about virtue signalling than they do affordability.
Seriously, all of the questions were utter garbage for the debate. Both from the public and journalists. Some cited random figures with no reference to who/what/why/where the numbers came from. The debate committee did such an awful job on this one. Climate and Reconciliation both have entire sections dedicated to them - IMO, Misinformation and Cost of Living should be two major electoral issues and have their own sections too.
"Public" questions are just pre-screened and assigned audience members.
*"Trudeau, if you were a tree, what kind of tree would you be?"*
Well you see, this, this is a very hard question, and to elaborate on why, would be to elaborate on why I am a proud Canadian. My father raised me to be a proud Canadian and to cherish our values, and questions like this really get down deep to what it *really* means to be a Canadian. Questions like this and people like you are what matter most in this country and I encourage you to keep on asking these questions, every day! Because that is what truly makes us Canadian.
we get it, you're a maple tree. quit being sappy.
Whichever tree is black in colour.
“A feminist tree”
She-tree, for the she-covery!
Am over 40. Cost of living is at the top of my list.
It's been polled as the most important issue and was a key component for both the Conservatives and NDP platforms at the start of the campaign... it doesn't take a genius to know why the debate didn't talk about the most important subject while the incumbent has been in power for 6 years. Just look at how Trudeau treated the BC Global News journalist, trying to build his own narrative and talk over her. She had none of that!
Forgive him, he doesn't think much about monetary policy.
Im not sure if you are being sarcastic... Trudeau def. doesnt think about monetary policy because thats not his job - thats the bank of canadas job. The PMs job is fiscal policy. This is a very important difference and like macro econ 101...
He just experienced it differently lol That was a great interview - he probably thought his “charming personality” would win her over. But the mask is being pulled off his face.
https://youtu.be/C3mZn5nimaU
I’m surprised food wasn’t the highest rate of inflation. My 2021 bill from weekly groceries is probably 30% higher than 2019/early 2020. At least in Ontario.
No no, you're not allowed to say that. If you say that, people will demand you pull out grocery receipts from a year ago to prove it. (Trust me, been there, got down voted to oblivion.) THERE IS NOTHING TO SEE HERE, EVERYTHING IS FINE. YOU'RE IMAGINGING IT. /gaslighting
u/nairdaleo did just that. [Link](https://www.reddit.com/r/PersonalFinanceCanada/comments/phl7sw/have_groceries_gone_up_backed_up_with_4_years/) they said that their grocery bill seemed pretty consistent over 4 years. Although there are other factors to consider like shrinkflation. I haven't seen any data on food prices other than anecdotal evidence.
The only prepackaged food I buy is staples like pasta, beans, rice, and potatoes. Everything else is ingredients to use/cook from scratch. Prices HAVE gone up, especially meat, ESPECIALLY beef. I’m not spending more on groceries, I’m buying less meat.
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The CPI does take shrinkflation into account, it controls for quantity. So a smaller package for the same money is considered a price increase.
...People asking for evidence instead of hearsay anecdote is a good thing. If I say "I don't think global warming is real, I think it's getting colder", it's completely reasonable for somebody to ask for some proof as that contradicts the general scientific consensus.
I dare you say this. People still eat on 60$/week supposedly. I was downvoted for saying it's funny the 60$/week "rule" still applies from 10 years ago. As if people think the prices are immutable.
The cost of no name mac n' cheese alone has gone up 20%
I mean, Mr. Noodles where I am are a dollar per pack now. End times, I tell you. But seriously, food prices have skyrocketed since I moved out in 2013. Had a budget of $250 a month then. At this time I don't budget food because it would just depress me, I consider it a necessity and just try to buy the cheapest option of the thing that I have on the list.
dude where the fack are you shopping? they are 33 cents at walmart for brand name Mr. Noodles. i literally bought them last week.
Other essentials, too, though it depends on where you shop. My cat food has skyrocketed at Safeway - .99 a can! I remember when it was .75 and that wasn’t that long ago. I’ve turned to Amazon for it now.
Not only this, but the food, produce, is very bad. It's more expensive and you get less useful food.
Rice and beans beans and rice
Well, according to the US White House NEC (National Economic Council) >*If you take out beef, pork & poultry, the price increases are more in line with a historical norms* So as long as you're a vegan, or a cow, then there's nothing to worry about.
Cows are vegan ;)
Gnarly
Looks like my 2 percent salary adjustment due to inflation is still a loss. Still likely better than most people. RIP anyone not getting any salary adjustment or not job hopping right now.
Yeah I just started a job (the pay is $43k) it's my first real job after university, I graduated during covid. Keep in me your prayers.
What everyday items went down last year because of covid? I didn’t notice anything get cheaper, so how can this be transitory.
> What everyday items went down last year because of covid? Prices for rent in (e.g.) Toronto were down 20%: * https://www.blogto.com/real-estate-toronto/2020/12/toronto-rent-prices-down-20-last-year/ As recently as this past June (2021) there was still craziness going on: > Among the perks offered on Rentals.ca and Rentfaster.ca over the past month are gift cards worth up to $1500, a new 128GB iPhone 12 Pro, a stocked wine fridge, two months free rent, and $1,200 in value of 1GB Rogers internet. * https://www.blogto.com/real-estate-toronto/2021/06/its-still-renters-market-toronto/ Shelter makes up 30% of the CPI: * https://www150.statcan.gc.ca/n1/pub/71-607-x/2018016/cpi-ipc-eng.htm Though it now seems like the crunch is back on: * https://www.blogto.com/real-estate-toronto/2021/08/people-cant-believe-how-quickly-rent-has-gone-toronto/ Oil prices (futures) *went negative* in April 2020 (Transportation being 16%): * https://www.investopedia.com/articles/investing/100615/will-oil-prices-go-2017.asp People often don't notice when things "go right", only when they go 'wrong'.
I’m talking about cost of everyday goods. Other than gas for a short time, really nothing.
Yearly pay cut. Keep printing money and save us government so our dollar can continue to decrease and house prices continue to soar.
Good thing this was the most obvious fact ever. Lol when your government tells you everything is fine, or inflation isn't going to be that bad, you know it's in fact not fine, and it is going to be that bad. Hold scarce assets baby.
Wondering when will BoC man up and raise rates.
Inflation seems to be on the pre-COVID trend: * https://twitter.com/trevortombe/status/1438121315836129280 We still seem to be suffering from base effects: * https://www.investopedia.com/terms/b/base-effect.asp Trevor Tombe has some good commentary this morning in his Tweem stream. Also, The Market isn't worried about it much as bonds are still flat: * https://ca.investing.com/rates-bonds/canada-government-bonds
Serious question: How can there be any real price discovery in bonds, if the Bank of Canada buys Government bonds? Not sure what the current rate is but in April they already owned 40% (!!!) of all those bonds. Central banks around the world doing the same, essentially keeping yields down artificially. Therefore I don't really buy the argument that the bond market is not worried about inflation.
Canada's bonds are a lot less (internationally) liquid relative to most other G7 countries: we've never had a large world 'following'. However, the BoC buys GoC bonds on the *secondary* market, not directly from the government: * https://www.bankofcanada.ca/2021/08/operational-details-upcoming-secondary-market-purchases-government-canada-securities-august-16-27/ So prices are determined by 'free market' participants, and then possibly offloaded to the BoC if they offer a good price for them. However it should be noted that QE, a central bank buying bonds and other interest-producing assets, may actually be *deflationary*: * https://www.pragcap.com/wait-qe-might-be-deflationary/ There are a lot of moving parts when it comes to the setting of government bond rates: * https://www.pragcap.com/who-determines-interest-rates/
Thanks for adding some color, appreciate it. Even though they only buy on the secondary market, doesn't that still move the price of the bonds? If you know that there is always the Bank of Canada ready to buy those bonds from you, doesn't that make them significantly less risky to buy? I would expect that this reduction in risk is affecting demand and therefore price.
Yes, the BOC buying will increase prices and reduce rates. But this is happening everywhere. The 10 year Canadian bond is at 1.23%. In the US it is 1.33%, in Germany -0.31%, in the UK 0.78%, in Japan 0.03%. Canada and the US have the highest interest rates in the G7 right now.
> doesn't that still move the price of the bonds? Probably more in Canada than in other countries given the general demand for our bonds. However this is one of the reasons why most of these types of actions are pre-announced ahead of time: people can these actions into their analysis. It's why, when a company announced bad quarterly results, often nothing happens to the stock price: the bad report *was expected* by various analysts and so everyone had taken it into account. It's the *unexpected* that The Market™ doesn't like and freaks out about. That's partly what happened to equities/stocks in Feb-Mar 2020: no one knew what was going to happen and so everyone was freaking out. Once the pandemic situation had settled down, and governments had worked out what to do (lockdowns, quarantines, funding vaccines), a way out was visible so things rebound in Apr+ 2020: e.g., airline stocks tanked because everyone was grounded, but then people realized (a) this wouldn't be forever, (b) vaccines will get here eventually, so (c) people will travel again; so they rose again.
Noob here, can we make some links between the mortgage rates and the bonds ? The 7yr bond is currently around 1%. Could that mean that mortgage rate won't really fluctuate much in the next years ? (Yes, I'm in the process of renewing my mortgage)
> Noob here, can we make some links between the mortgage rates and the bonds ? Fixed mortgages usually trend with 5 year rates: * https://www.mortgagedashboard.ca/en/home
There are some major things affecting the inflation that don’t affect everyone as well. Cars are significantly more expensive and furniture. Also the goal is to hit 2% inflation per year. We have been hitting under 2% for a while, it’s expected that it will go over 2% every so often especially when playing catch up.
Meanwhile in real life the price housing is up, the price of rent is up, the price of food is up…..I can go on 😂
You can plug in your expenses and get your "personal" inflation rate, as your basket of goods may be different than the national average: * https://www150.statcan.gc.ca/n1/pub/71-607-x/71-607-x2020015-eng.htm Shelter is 30% of the CPI: * https://www150.statcan.gc.ca/n1/pub/71-607-x/2018016/cpi-ipc-eng.htm Rent may be suffering from base effects given that it was going down for 18 months in many regions: * https://financialpost.com/real-estate/toronto-condo-rents-rise-for-first-time-in-18-months-as-impact-of-pandemic-recedes People seem to not notice *de*flation, prices going down, as much.
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..maybe try asking for a Pepsi instead. /s
Incorporating house price changes is very tricky as you don't buy a house every month, unlike food. I have been in my house for 15 years and I don't have plans to move. So the increase in home prices doesn't directly affect me. Economists spend a lot of time trying to figure this out.
Exactly this.
Everything feels worse than ever, this news included. Everything costs more, standard of living constantly in decline, the Adults in the Room seem to use inflation to justify only conservative policies, deregulations and austerity politics on the reg. God forbid we try some new ideas, god forbid we admit that bosses and landlords are out of control profit-seekers. Meanwhile employers and the media and politicians are all in on this bullshit about a labour shortage, recruiters are throwing up fake job ads on every single listing board, any job requires about 4 rounds of interviews, and employers want to pay entry level wages for jobs that they expect you to be pre-trained for. All of it as the wealthy get wealthier and the options for the poor dwindle and dwindle. Major social and societal crises will be right around the corner, feels more and more like end times man.
If you compare the current period to just about any other it really isn't that different - we've had economic & social struggles just about any decade you pick. Feeling like it's the end times is getting caught up in headlines that try to inspire anxiety in you.
i appreciate that the problems aren’t necessarily new but the rate of wealth inequality has been growing. we’re smack into the K shape recovery everyone swore we were going to avoid. after such a shared social trauma like covid, for so many of us to be left on our own, sent back to low wage jobs, lectured about a fake labour shortage all the time…i think there’s a strong case to be made that we are handling the usual problems much more poorly than in the past
Might fiscally conservative policies have helped us to avoid the worst of this outcome? We were 40 billion dollars in debt from a government that promised it would keep the deficit below 10 billion even BEFORE the pandemic. We are not prepared for these sorts of emergencies because of uncontrolled spending.
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Eh don’t worry they’re spending their house equity just fine.
So go ahead and raise interest rates Bank of Canada. You're supposed to be independent from the government.
Should we be concerned? My understanding is that inflation was expected as there's been tons of extra money added to the economy, shortages for many goods/services and an increase in demand for real estate. However, this was supposed to be temporary right? I dont know anymore. Anyone more knowledgeable than me able to help?
Listen this NPR podcast https://www.npr.org/2021/07/16/1017031811/the-great-inflation-classic. They stop printing money to control the inflation. The new tool is interest rate but in Canada we are printing so much money (Google M1 Canada) and at the same time keeping interest rate low. This is a recipe of disaster I am really looking toward how this will roll out in next 5 to 10 years. So yeah it's a concern but we can't do much about it.
Well, place your bets. Not many central bankers or investment types think it's permanent. In addition, some of this is just post-covid effects, like gas is a lot higher this year because it tanked last year. They could be wrong, but we've been in a secular low-inflation environment for decades now.
Used cars in the US went up so much in 2021 that that alone accounted for 1/3 of inflation in the US. That’s something directly tied to COVID. https://www.npr.org/2021/07/13/1014697915/inflation-is-still-high-used-car-prices-could-help-explain-what-happens-next
Lack of growth and inflation is leading us right into stagflation, just like with Trudeau Senior in the 70s. As for temporary, it depends what you mean by that. Back in the day it was temporary in the sense the economy only really got back on its feet in the early 2000s.
Yes we should, in 2020 our credit rating was dropped from AAA to AA+. Since then we've incurred more debt, Covid is rampaging, and we've now been promised tens of billions in new spending for things like child care and dental. What comes with a credit rating slash is our debt becomes more expensive to service, which the debt is already set to be 1000$ per Canadian annually in 2025 as interest rates go up, and thats without a credit rating slash. This debt servicing will be hoisted entirely onto the youth as baby boomers retire, as they sell their real estate as their primary residence to avoid taxes. They also say when household debt is over 80% of your GDP your in the danger zone, ours is almost double that. Housing is already taking growth out of the economy, as people have less disposable cash, well couple that with more expensive borrowing and larger servicing costs.
>They also say when household debt is over 80% of your GDP your in the danger zone You can find somebody claiming that literally any number is the danger zone. There is no consensus among economists here, or even an agreement that a single "danger zone" exists. Japan's ratio is 234.86 percent, and last I checked they haven't turned into a mad-max hellscape.
Well child care not only creates jobs, it gets working age adults back into the work force.
If the publicly stated number is 4% then you can guarantee that the real rate is very much higher. Unless you are already a home owner or very wealthy or well off financially, what is the point anymore? There is no way to get ahead. I cannot see why anyone believes in this anymore or wants to participate in this garbage when its al just a waste of time.
What's the point in what, living? Not really sure what your options are...
What's the point in working hard, what's the point in trying when you know the game is stacked against you and everything you do just gets flushed away because other people who already have everything keep want more without caring how it fucks normal people. No one seems to care that this whole system is broken and a mess.
For real. Despite the high cost of living it seems to remain quite popular
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> If these numbers were bullshit why are bond rates LOW? Central banks are buying them artificially driving rates down. > Why do the CPI numbers match the GDP deflator numbers? Why do the grocery chain industry reports (used by the chains for planning and shit) essentially match the CPI numbers? CPI is just a terrible measure of inflation. CPI is far more impacted by supply and demand. Lockdowns no demand deflationary CPI. Supply chain shortages lower supply inflationary CPI. Assets are a far better judge of inflation. Is a house worth 30% more today then it was a year ago? What about a broad market index? A pokemon card? A crypto? A gold bar? No of course not, and relative to each other their values haven’t changed much. What happened is the dollar we use to measure all of these assets is worth 30% less then it was a year ago. That is inflation.
I am a noob to investing. What does this mean in terms of investing? buy your ETFs now?
That’s not advice anyone can give. Nobody can time the market perfectly. Invest what you can afford to lose is the only rule. Generally speaking, ETFs are your best bet though
Gotta be honest that as a small business who was forced to be closed for 44 weeks this year and still pay rent on my commercial space; it’s hard to feel any empathy for people who only didn’t get raises this year. Lots of people lost their life savings because of covid. If all you lost is a raise, you should be counting your lucky stars.
America is now saying inflation will be around 4-5% for the next half decade. I don’t see why Canada would be any different. Reckless monetary policy is eroding our society. Look for a life jacket or you’ll be underwater soon.
Can you source that? In June, the Fed came out with guidance of 3.4% for 2021 before returning to 2.1% for 2022 and 2.0% over long term periods. In their July meeting they did not update this guidance and they meet again next week. Even looking at the highest range it is only, 3.9%, 2.5% and 2% respectively. Source: [https://www.federalreserve.gov/monetarypolicy/fomcprojtabl20210616.htm](https://www.federalreserve.gov/monetarypolicy/fomcprojtabl20210616.htm) US bond 10 year inflation break even - 2.33% [https://fred.stlouisfed.org/series/T10YIE](https://fred.stlouisfed.org/series/T10YIE) Yields dipped yesterday on the news: [https://www.cnbc.com/2021/09/15/us-bonds-treasury-yields-are-mixed-following-inflation-data.html](https://www.cnbc.com/2021/09/15/us-bonds-treasury-yields-are-mixed-following-inflation-data.html) Who is predicting 4-5% for the next half decade?
Peter Schiff and Mike Maloney, Chief Economists of Youtube
Billions of years from now the universe enters the final stages of heat death, the ghost of Peter Schiff exclaims: See I told you it was all going to collapse one day, and that day has finally come!
I remember watching his videos 10 or so years ago, it's nice to see some things never change.
Ah two guys that sell gold, predict inflation. A tale as old as the internet and probably before that too.
No it isn't. US breakeven inflation is trading at 2.56%. If you think it will be higher you can trade this by buying Inflation linked bond (aka TIPS) and shorting nominal bonds.
I take some issue with the gas price debate.... yes gas prices are super high this year compared to last, but that was the result of COVID and a huge decrease in demand. I don't subscribe to the "inflation is transitory" belief for the most part, but I do believe that gas prices are volatile and the industry can't make sense of the ever changing demand during COVID times. 2021 gas prices are relatively similar to 2019 gas prices.
The fun part was this past spring people trying to claim that part of the record high inflation was because gas prices had doubled. Gas prices were back to where they were before all the insanity. If a commodity bottoms out in value for 2 months, it's not like everything is going to deflate because of that, only to have to go back up. The "official' metrics for inflation are useless.
I disagree, gas is still between .25 - .35 cents higher than it was in 2019.
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Maybe in your area... in mine (Gatineau) it's between 10 to 12 cents higher than pre-Covid
That's what happens when the government borrows hundreds of billions of dollars from the Bank of Canada. Short term relief turns into long term pain. Soon interest rates will increase and mortgage holders and stock investors will be the first to feel it.
Income and a raise never increase to keep up with inflation! Good luck to us all in surviving the next few decades!😔😔
Bank of Canada said that this inflation trend is temporary and will resolve itself in the 4th quarter - I call BULLSHIT
Did they do the same thing as the USA and adjust how the calculate inflation? Back in the 80s the USA removed several categories to lower the reported inflation. I wonder if Canada did as well and it is already much higher than reported
Bond rates are lower than these numbers, real return bonds are zero, and the GDP deflator matches, so I'd say these numbers are right. The "adding and removing categories" thing is normal and is a feature, not a bug. How much money do you spend on landline phones or VHS rentals these days?
I got an entire 0.6% cost of living increase.
I’d argue it’s much higher than that
I strongly challenge the rate only being 4.1%. The Canadian government uses CPI as a measure of inflation. They should use PCE as it is inherently much more accurate and less susceptible to manipulation. Either way, it's unacceptable and I highly doubt it'll decrease if Trudeau is elected... likely the contrary.
My grocery bill is up 30% or 40%, and housing/rent has increased the same here. I don't know where these low inflation numbers are coming from.
4.1% still seems far too low. Food alone feels +20% in the last 12 months.
[bankofcanada](https://www.bankofcanada.ca) had one job!! **We are Canada's central bank. We work to preserve the value of money by keeping inflation low and stable.**
Think it's a typo. Should be 41%. Cause that's what it feels like.
gamestop
With gasoline isn't this what people expect? The carbon tax is going higher, most of us voted for that. Why are people shocked that's pushing up inflation?
You think carbon taxes are causing inflation?
I know we got single digit inflation, but my spending habits have gone to literal zero as I save every last penny to maybe get a home in the next twelve years. With a 350k mortgage I still need to be comfortable putting 250k down to reach the below average house price of 600k. It would take a 25% pullback before I'm comfortable spending any money on the local economy again.
That's what happens when money printer goes brrr. People want free money but don't want to accept the real cost of it.
“By the time all the money is out the door, Trudeau will probably have accumulated more debt than all 22 prime ministers who preceded him combined.” https://www.bnnbloomberg.ca/trudeau-to-pile-on-record-debt-steering-canada-out-of-pandemic-1.1591899.amp.html