David Clinton
The Hidden and Tragic Costs of Housing and Immigration Policies

We’ve discussed the housing crisis before. That would include the destabilizing combination of housing availability – in particular a weak supply of new construction – and the immigration-driven population growth.
Parsing all the data can be fun, but we shouldn’t forget the human costs of the crisis. There’s the significant financial strain caused by rising ownership and rental costs, the stress so many experience when desperately searching for somewhere decent to live, and the pressure on businesses struggling to pay workers enough to survive in madly expensive cities.
If Canada doesn’t have the resources to house Canadians, should there be fewer of us?
Well we’ve also discussed the real problems caused by low fertility rates. As they’ve already discovered in low-immigration countries like Japan and South Korea, there’s the issue of who will care for the growing numbers of childless elderly. And who – as working-age populations sharply decline – will sign up for the jobs that are necessary to keep things running.
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The odds are that we’re only a decade or so behind Japan. Remember how a population’s replacement-level fertility rate is around 2.1 percent? Here’s how Canadian “fertility rates per female” have dropped since 1991:
Put differently, Canada’s crude birth rate per 1,000 population dropped from 14.4 in 1991, to 8.8 in 2023.
As a nation, we face very difficult constraints.
But there’s another cost to our problems that’s both powerful and personal, and it exists at a place that overlaps both crises. A recent analysis by the Parliamentary Budget Officer (PBO) frames it in terms of suppressed household formation.
Household formation happens when two more more people choose to share a home. As I’ve written previously, there are enormous economic benefits to such arrangements, and the more permanent and stable the better. There’s also plenty of evidence that children raised within stable families have statistically improved economic, educational, and social outcomes.
But if households can’t form, there won’t be a lot of children.
In fact, the PBO projects that population and housing availability numbers point to the suppression of nearly a half a million households in 2030. And that’s incorporating the government’s optimistic assumptions about their new Immigration Levels Plan (ILP) to reduce targets for both permanent and temporary residents. It also assumes that all 2.8 million non-permanent residents will leave the country when their visas expire. Things will be much worse if either of those assumptions doesn’t work out according to plan.
Think about a half a million suppressed households. That number represents the dreams and life’s goals of at least a million people. Hundreds of thousands of 30-somethings still living in their parents basements. Hundreds of thousands of stable, successful, and socially integrated families that will never exist.
And all that will be largely (although not exclusively) the result of dumb-as-dirt political decisions.
Who says policy doesn’t matter?
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COVID-19
Vaccines: Assessing Canada’s COVID Response

David Clinton
I planned to be “first in line” for the shots as soon as my age cohort became eligible. By early March however, COVID itself dropped by the house, leading to the most uncomfortable (although non life-threatening) week of my life.
It’s been five years since COVID hit and one part of me wants to stuff it all in a closet somewhere and forget about it. But perhaps certain events – and especially government errors and overreach – should be documented. So this post will identify actions at all levels of government from those early days that, given our understanding of the threat available through the benefit hindsight, were both misguided and damaging.
I haven’t completely forgotten the mood through the early months in 2020. Politicians faced near-unanimous public demand for an aggressive response. Much of that sentiment was the result of messaging coming from foreign governments (mostly in the U.S.). But the local sentiment was definitely there.
To be fair, Governments got some things right and, taking into account the chaos and uncertainty of those early months, even some of their mistakes were understandable. But it’s the job of government to lead. And to avoid making choices – even popular choices – that will lead to predictable harms.
Vaccine mandates starting in 2021 were a case in point. Federal authority largely stemmed from the 2005 Quarantine Act and the Contraventions Act that allowed officials to issue tickets for non-compliance with the Quarantine Act. Provincial mandates were based on laws like Ontario’s Emergency Management and Civil Protection Act. The question isn’t whether the mandates and their enforcement were legal, but whether they caused more harm than good.
As the first vaccines started arriving in Canada around February 2021, I planned to be “first in line” for the shots as soon as my age cohort became eligible. By early March however, COVID itself dropped by the house, leading to the most uncomfortable (although non life-threatening) week of my life.
After recovering, my family doctor advised me to wait three months before getting the shots so my body could get back to normal. During those months, I got access to preprint results from the Israeli study into natural immunity which showed that:
Natural immunity confers longer lasting and stronger protection against infection, symptomatic disease and hospitalization caused by the Delta variant of SARS-CoV-2, compared to the BNT162b2 two-dose vaccine-induced immunity
Those results were later confirmed by CDC and NEJM studies, among others.
Given that context, I didn’t see any justification for exposing myself to even minimal health risks associated with vaccines. Which meant that, despite demonstrably posing no threat to public health, I would (at various times) be unable to:
- Board domestic commercial flights, VIA Rail, Rocky Mountaineer trains, and cruise ships within Canada
- Board international flights or trains departing Canada
- Freely return to Canada through an overland point of entry
- Upon return to Canada, bypass the 14 day quarantine under the Quarantine Act
- Upon return to Canada via air, bypass the three day quarantine in (expensive) government-approved hotels
- Engage in ‘non-essential” activities like restaurants, gyms, events (details varied from province to province)
- Enter Parliament
- Seek employment in federally regulated air, rail, and marine sectors
What should Canadian governments have done? Remove restrictions on individuals with natural immunity, obviously. Which, by the way, would have come with the valuable bonus of entirely avoiding the truckers protest and consequent confrontations.
If authorities were reluctant to take us at our word on immunity, they could have followed the European Union’s lead by emulating their Digital COVID Certificate for proof of recovery. Were they worried about people without immunity creating fake certificates? Hard to take that one seriously. There were more fake vaccine passports littering the streets of Ontario than abandoned Toronto Maple Leafs car window flags in a normal early May.
In the end, my own suffering was negligible. I didn’t really want to visit family in the U.S. all that much anyway. But for millions of other Canadians, the real-world stakes were far higher. And all that’s besides the billions of dollars wasted during those years’ government policies.
To be sure, resisting unscientific street-level calls for vaccine mandates would have required courage. But shouldn’t acts of courage be a source of pride for public officials?
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Business
Is Government Inflation Reporting Accurate?

David Clinton
Who ya gonna believe: official CPI figures or your lyin’ eyes?
Great news! We’ve brought inflation back under control and stuff is now only costing you 2.4 percent more than it did last year!
That’s more or less the message we’ve been hearing from governments over the past couple of years. And in fact, the official Statistics Canada consumer price index (CPI) numbers do show us that the “all-items” index in 2024 was only 2.4 percent higher than in 2023. Fantastic.
So why doesn’t it feel fantastic?
Well statistics are funny that way. When you’ve got lots of numbers, there are all kinds of ways to dress ‘em up before presenting them as an index (or chart). And there really is no one combination of adjustments and corrections that’s definitively “right”. So I’m sure Statistics Canada isn’t trying to misrepresent things.
But I’m also curious to test whether the CPI is truly representative of Canadians’ real financial experiences. My first attempt to create my own alternative “consumer price index”, involved Statistics Canada’s “Detailed household final consumption expenditure”. That table contains actual dollar figures for nation-wide spending on a wide range of consumer items. To represent the costs Canadian’s face when shopping for basics, I selected these nine categories:
- Food and non-alcoholic beverages
- Clothing and footwear
- Housing, water, electricity, gas and other fuels
- Major household appliances
- Pharmaceutical products and other medical products (except cannabis)
- Transport
- Communications
- University education
- Property insurance
I then took the fourth quarter (Q4) numbers for each of those categories for all the years between 2013 and 2024 and divided them by the total population of the country for each year. That gave me an accurate picture of per capita spending on core cost-of-living items.
Overall, living and breathing through Q4 2013 would have cost the average Canadian $4,356.38 (or $17,425.52 for a full year). Spending for those same categories in Q4 2024, however, cost us $6,266.48 – a 43.85 percent increase.
By contrast, the official CPI over those years rose only 31.03 percent. That’s quite the difference. Here’s how the year-over-year changes in CPI inflation vs actual spending inflation compare:
As you can see, with the exception of 2020 (when COVID left us with nothing to buy), the official inflation number was consistently and significantly lower than actual spending. And, in the case of 2021, it was more than double.
Since 2023, the items with the largest price growth were university education (57.46 percent), major household appliances (52.67 percent), and housing, water, electricity, gas, and other fuels (50.79).
Having said all that, you could justifiably argue that the true cost of living hasn’t really gone up that much, but that at least part of the increase in spending is due to a growing taste for luxury items and high volume consumption. I can’t put a precise number on that influence, but I suspect it’s not trivial.
Since data on spending doesn’t seem to be the best measure of inflation, perhaps I could build my own basket of costs and compare those numbers to the official CPI. To do that, I collected average monthly costs for gasoline, home rentals, a selection of 14 core grocery items, and taxes paid by the average Canadian homeowner.¹ I calculated the tax burden (federal, provincial, property, and consumption) using the average of the estimates of two AI models.
How did the inflation represented by my custom basket compare with the official CPI? Well between 2017 and 2024, the Statistics Canada’s CPI grew by 23.39 percent. Over that same time, the monthly cost of my basket grew from $4,514.74 to $5,665.18; a difference of 25.48 percent. That’s not nearly as dramatic a difference as we saw when we measured spending, but it’s not negligible either.
The very fact that the government makes all this data freely available to us is evidence that they’re not out to hide the truth. But it can’t hurt to keep an active and independent eye on them, too.
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