Childish thinking creates Adult Problems
Canadian economists are warning real estate values are about to plummet. There are two factors at work. First the senseless lockdown regulations distorted the market. All of the telecommuting workers bought up property in rural areas. Why stay in the city if you can’t go in to the office anyway? This artificially escalated real estate values. Unfortunately what goes up must come down. The values are not real and will eventual evaporate.
COVID lockdowns are destructive economic interventions. Massive government intervention in the economy never works. It always causes problems. People in government are just not nearly as smart as they think they are. They should never be allowed any real power because they will abuse it. History is full of examples of government intervention damaging economies that we continue to ignore. This bubble was both predictable and avoidable; all we had to do was reject lockdowns.
The second thing at play is interest rates. Interest rates are rising to control inflation. The inflation was caused by uncontrolled government spending. COVID lockdowns resulted in already unsustainable government spending increasing dramatically. High interest rates will cause everyone except government to curtail spending. People won’t be out buying new houses because they can’t afford the mortgages. The lack of buyers will collapse even uninflated real estate values.
Deficit spending is just another way government interferes with the economy. We face uncertain times because Government will not stick to their knitting and get out of the economy. Don’t expect that to change any time soon. Canada’s finance minister has decided the best way to battle inflation caused by unrestrained government spending is to spend more money.
Finance Minister Chrystia Freeland tabled her fall economic statement Thursday — a multi-billion dollar plan that calls for more spending even as the economy stands on the brink of a recession, with interest rates set to move still higher.
The root of the problem, as always, is government; or more specifically the people in government. We are where we are because important decisions are made by un-intelligent people with childish understanding of how the world works. The Children in charge in Canada have made a mess and unfortunately, Canada is not the only Child led country in the world. The entire western world is a mess right now.
In the Netherlands the green revolution is eating its own. The Dutch government is finding their grandiose great reset plans stymied by their own childish green regulations. It seems regulations designed to prevent construction and economic growth also prevent construction of windmills and solar panels. This is a problem that could only have been anticipated by adults of which the Dutch parliament has none.
The North American EV revolution is also facing unanticipated obstacles. EV owners are shocked to discover that people who build charging stations expect a return on their investment. Apparently People who bought luxury automobiles thought they would be allowed to charge their vehicle for free as an award for their impressive level of virtuousness. The Children in government will also be upset about this sliver of capitalist reality. I expect that they will soon pass legislation outlawing charging fees, there by ensuring no one will build another charging station.
The longer Childish morons like Biden, Trudeau, and Freeland are in charge the larger the problems become. Barring massive cheating our American cousins could start rectifying their problems next week. Canadians must wait much longer. Our system seems designed to keep overgrown children in power.
