44th Parl. 1st Sess.
November 30, 2021 10:00AM
- Nov/30/21 1:47:22 p.m.
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Madam Speaker, it has been my practice to consider my response to the Speech from the Throne to be my maiden remarks in every Parliament, and I want to begin by thanking the good people of Carleton for electing me a seventh time to this chamber. They have vested their trust in me and I am deeply humbled by it.
I want to thank my wife Anaida, my daughter Valentina and our new son baby Cruz. Cruz was born eight days before the election. He was born premature. He rushed to get here and then they told him he had to wait 18 more years to vote. It is another example of the red tape and rules that are holding people back. The poor little guy could not even vote for his dad. We hope to fix that when we are in government. The other thing he found out is that he owes something like $60,000 of federal government debt.
Those were two pieces of bad news, but all else has been good news for him. He has a wonderful and loving mother, and he is fortunate to look more like her than his father, which all members will agree is a good thing. As members can see, I was not elected for my good looks, but I am very thankful to have the support of my family.
I also want to thank my father Don, my mother Marlene and my brother Patrick, as well as the countless volunteers, workers and other supporters who have stood by me through thick and thin. I am very pleased to be back here on the floor of the House of Commons to work with everyone here in the service of the common people.
Today, I would like to speak about the question everyone is asking.
Why does everything cost so much? No matter where we go, prices have gone up. Young people who are still living in their parents' basements are wondering why housing prices have risen so much. The single mother doing her grocery shopping is wondering why it costs so much to buy food for her children. The worker trying to fill up his truck is wondering why he can only afford to buy a quarter of a tank of gas.
The answer is clear: inflation. There is too much money chasing too few goods and services. How did that happen? The Liberals are trying to blame COVID-19 and the resulting disruptions.
It is strange because the Minister of Finance and the current and former governors of the Bank of Canada said that COVID-19 would cause deflation. However, this week, we heard Stephen Poloz claim that COVID-19 is causing inflation, when he is the one who said that the problem we would have would be deflation. The same people who said that COVID-19 would cause deflation are now blaming COVID-19 for inflation.
COVID‑19 is obviously not the main cause. We know this because many other countries have also had COVID‑19, but they have a much lower inflation rate than here in Canada because they have printed less money than here. I am thinking of countries like Saudi Arabia, Switzerland, Australia, Singapore, South Korea, India, China, Japan, Germany, the Netherlands, Italy, France and the United Kingdom. For its part, the Canadian government has decided to follow the disastrous policy of the United States and print money to finance a deficit.
In the United States, we have seen the result of this policy: the rich have become much richer. Their assets have increased. However, the wages of the poor and the working class are losing value. Their dollar buys less because of the supply of that currency. Of course, in the United States, the two main parties, the Republicans and the Democrats, agree on one thing and one thing only. Both parties like to print money. The Republicans like to fund Wall Street, and the Democrats like to fund Washington. One party likes big business, and the other likes big government. To finance both, they are printing a lot of money, and this has caused very negative effects for the poor. It has increased the gap between the rich and the poor.
Here in Canada, we have not followed this approach. During the Harper years, there was almost no inflation. After the great recession of 2008-09, we had the best economic recovery and we eliminated the deficit in five years. We were able to do that because we did not print money. We spent real dollars to help Canadians during the crisis, and we returned to a balanced budget soon after.
Suddenly, in 2020, during the COVID‑19 crisis, the government decided to start copying what the U.S. Federal Reserve has done, which is to print money to pay the bills, because Canada's deficits were the highest in the G20 and the government was unable to get the financing it needed from the traditional bond market. What this means is that the government increased the amount of money in circulation by $400 billion, which is about a 25% increase.
Since then, inflation has been astronomical. For example, the price of a house has increased by 30%, which is strange, because one would have expected prices to go down in the midst of the COVID‑19 crisis. There was no immigration, which reduces demand. Wages went down, which limits the amount of money people have to buy homes. People were scared, which would normally make people think twice about purchases.
Prices did not just go up, however. Property prices increased at an unprecedented rate in Canada's modern history. International supply chains cannot be to blame since land does not have a supply chain. The land has been here for thousands or maybe millions of years. Land does not appear or disappear, so when the gross value of land increases by 20% in a single year, it has nothing to do with the virus or with the delivery of goods. Once again, land does not get loaded onto a ship to be sent to Canada. It is a question of demand. What caused this demand?
When the government printed the $400 billion, it did not throw that cash out of a plane. That may have been fairer than what it actually did with the money. The government is giving that money to the banks and these banks are loaning it to homebuyers, which is causing the price of real estate to go up.
Clearly, the government is behind the whole situation, and this creates a great deal of unfairness. We need to stop printing money, pay down the deficits and let builders build homes. That is how Canadians will be able to live a dignified and respectable life.
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- Nov/30/21 1:58:25 p.m.
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Madam Speaker, I thank the member for his kind words. I have enjoyed conversations with him. In fact, I had the chance to meet his lovely children, who were on Parliament Hill just last week. I think he is preparing them to run for office, although he had better be careful, because he might not have long in his seat if one of them is too ambitious. That said, I congratulate him on his election and on his wonderful family.
The question about child care is particularly pertinent, because, as the government keeps reminding us, child care is more expensive than ever after six years of Liberal government. It is ironic, because every time the Liberals say they are going to spend money on a particular thing, that thing gets way more expensive. They said they were going to spend $70 billion on housing, and what happened to housing? It got a lot more expensive. It went from about $450,000 for the average house to $716,000. Now homebuyers are paying more and taxpayers are paying more for the same thing that used to cost less for both.
I just hope the Liberals do not get the same results on child care that they got on housing, because God knows parents are paying too much as it is.
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- Nov/30/21 2:35:00 p.m.
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Mr. Speaker, let us get this straight. When Conservatives were in power, according to him, we spent $250 million on housing, and the average house cost Canadians $450,000. With Liberals now in power, they are spending 27 billion tax dollars, and the average house costs $720,000. Housing is now not just more expensive for taxpayers, it is more expensive for home buyers. Failing is bad. Failing expensively is even worse.
Why do we have the second biggest housing bubble in the world?
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- Nov/30/21 2:36:21 p.m.
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Mr. Speaker, he seems to be bragging that he is the most expensive housing minister in Canadian history. Not only are Canadians spending more when they buy a house, now they have to pay more on their taxes for the failed programs that this minister and the government put in place to inflate the housing bubble to begin with. Canada has the second biggest housing bubble in the world, behind a tiny island in the South Pacific called New Zealand. Every other country has less housing inflation.
What is causing this massive bubble? Is it just inflation?
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- Nov/30/21 2:37:46 p.m.
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Mr. Speaker, maybe the Prime Minister will listen to the Deputy Prime Minister's book, and in that book she could explain how she has managed to create the second biggest housing bubble in the world. In fact, Vancouver has the second highest home prices on earth. Toronto is number five. They are more expensive than Manhattan; San Francisco; London, England; and other places with far less land, far more people and far more money. This is housing inflation that has resulted since the government unleashed a torrent of money printing.
Will the finance minister finally tell us what is causing this housing bubble? Is it just inflation?
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- Nov/30/21 3:15:17 p.m.
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Mr. Speaker, that is a very good question. What is the cause of real estate inflation?
First, it is not COVID-19. It should actually have driven housing prices down. There is no immigration, so there are fewer consumers buying houses; wages are lower, because people have lost their jobs; and there is a lot more uncertainty, which usually discourages people from buying anything at all; yet prices have gone up.
Second, international supply chains are not the issue, because that does not include land, since it is already here.
Third, Canada has the world's second-highest real estate inflation. We have the second-largest housing bubble after New Zealand. Other countries also have COVID-19, but real estate inflation is not as high elsewhere.
What is causing it? The government printed $400 billion in the last year and a half. The money went to the banks and was loaned to buyers, specifically to very wealthy investors, to inflate real estate prices and keep the dream of home ownership out of reach for many Canadians.
This means that we need to stop printing money to drive out inflation, and start building housing instead of printing money.
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- Nov/30/21 3:17:42 p.m.
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Mr. Speaker, if the hon. member thinks that somebody cancelling their $3,000 vacation is what caused housing prices to rise 25% in one year, one-third since COVID, then he needs to pull out his calculator and do a little more math.
What actually happened is that mortgage lending went up 41%, most of it going to rich people and wealthy landlords, after the Bank of Canada began printing its $400 billion. Too many dollars chasing too few houses equals house price inflation.
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