USA Wages Growing Faster Than Canadas Due To Lower Immigration

[Economy 52,835]

https://www.bnnbloomberg.ca/canadian-wage-growth-lagging-u-s-due-to-immigration-levels-cibc-1.1704641

 

A study and analysis by CIBC bank finds that wages are rising faster in the US because their labour shortage is more severe while Canada is largely replacing retiring workers with high immigration level

 

Last year Canada accepted over 400,000 immigrats vs 500,000 in the US despite the US having 9 times the population making the per Capita immigration rate almost quadruple in Canada

 

However theres drawbacks.  Inflation is even higher in the US than Canada in part due to wage inflation essentially cancelling out the higher wage growth.

 

Not replacing ageing and retiring workers may increase wages for workers in the short term but strains the pension and social system harder possibly resulting in higher taxes or mqndatory retirement contribution rates down the line to offset the strain

[Chlorine 47,976]

@mods when do I get my own GGD tag? 

[Guest]

crazy i had a dream i moved to Toronto, maybe i'll be a new immigrant

[TheSlash 14,539]

GGD cropping title: "USA Wages Growing Faster Than"

My brain: "you can say Ferrari"

   

[Economy 52,835]

39 minutes ago, AnnaNicoleSmith said:

crazy i had a dream i moved to Toronto, maybe i'll be a new immigrant

U might wanna hold off till housing crisis is improved... which may be never

[Guest]

8 minutes ago, Economy said:

U might wanna hold off till housing crisis is improved... which may be never

I need to bang the mayor i guess

[Der Meister 3,000]

Higher wages = higher costs of living = higher inflation = higher wage inequality = more homelessness

[Economy 52,835]

13 minutes ago, AnnaNicoleSmith said:

I need to bang the mayor i guess

Its a National problem 

[Economy 52,835]

4 hours ago, Der Meister said:

Higher wages = higher costs of living = higher inflation = higher wage inequality = more homelessness

I disagree

 

When wage growth is the main source of whats driving inflation then inflation does not usually exceed wage growth. Worst case scenario inflation fully catches up with wage growth eventually (theres always a lag) and peoples purchasing power stays the same but at least it doesnt drop

 

Best case scenario, high wage pressures tend to drive productivity rates per worker and companies search for ways to control costs and boost production to offset costs...

 

when productivity increases then part of the higher labor costs are offset and inflation will usually be lower than the wage gains, meaning there is still a small net positive in purchasing power for ppls wages because inflation will be lower than wage growth

 

Unfortunately the current inflation has other factors at play as well due to both pandemic and monetary policy so what i described above isnt really the case right now. Purchasing power is still dropping as a result especially for the poor

 

The reason inflation often hurts ppl is because wage gains alone are not the predominant or only factor in the inflation and so their purchasing power suffers when wages dont match inflation...

 

But the portion of inflation that is driven from wage growth isnt the problem

 

Basically in other words, are wages rising more because of inflation catchup (workers demand the higher wages to keep up and the lag time means wages are always behind rate of cost of living increases)... or are wages rising and so theres inflation catch up (so wage growth happens ahead of price increases)... the distinction between which is driving it at the front and which one is catching up at the tail end is important

[Gagaloo911 12,959]

3 hours ago, Der Meister said:

Higher wages = higher costs of living = higher inflation = higher wage inequality = more homelessness

This is ridiculous. Right wing and corporate talking points to keep wages low.

Inflation is a constant, so you think wages shouldn't also rise relative to it and people should just remain poor? 

[PartySick 172,384]

4 hours ago, Frank Potion said:

@mods when do I get my own GGD tag? 

Idek where we'd put a THOT tag

Spoiler

Kidding  ily

 

[Chlorine 47,976]

2 minutes ago, PartySick said:

Idek where we'd put a THOT tag

  Hide contents

Kidding  ily

 

I had this coming 

[Economy 52,835]

33 minutes ago, Gagaloo911 said:

This is ridiculous. Right wing and corporate talking points to keep wages low.

Inflation is a constant, so you think wages shouldn't also rise relative to it and people should just remain poor? 

I dont think all points right wingers make about inflation is wrong

 

But that one definitely is big time

[Emvee 8,825]

46 minutes ago, Gagaloo911 said:

This is ridiculous. Right wing and corporate talking points to keep wages low.

Inflation is a constant, so you think wages shouldn't also rise relative to it and people should just remain poor? 

The reality is, at least here in the United States, wages never kept up with inflation. 
 

So the argument that wages CAUSE inflation is so ludicrous. It’s not what caused the labor shortage or supply chain issue and it’s not what set off the recent inflation. 

[Gagaloo911 12,959]

Just now, Eriq said:

The reality is, at least here in the United States, wages never kept up with inflation. 
 

So the argument that wages CAUSE inflation is so ludicrous. It’s not what caused the labor shortage or supply chain issue and it’s not what set off the recent inflation. 

Exactly. I really can't at those who buy into the narrative that wages can't rise and believe these things that literally keep them in poor jobs with stagnant and unlivable wages.

To think that wages shouldn't rise even though prices of goods and materials are going to regardless is just ignorant.

How would we afford anything if wages didn't go up when prices do?

Make it make sense luv!