Canada has a low-household-savings, stagnant income, high debt, aging boomers, slowing economy problem. The Bank of Canada will no doubt cut its policy rate soon but in present conditions, more consumer debt-stimulus will not help. Pushing lines of credit and housing prices a little higher is not going to aid what’s binding here. Doubling down on new technology–food, energy and transportation systems–while retrofitting our buildings and infrastructure are the best bet to lower friction costs and rejuvenate the economy.
Benjamin Tal, deputy chief economist of CIBC Capital Markets, explains on BNN Bloomberg. Here is a direct video link.
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