Canada is currently facing a multitude of issues that are negatively impacting the quality of life for its citizens. From a housing crisis and rising costs of living to government inaction and human rights abuses, Canada is facing challenges on multiple fronts. The country is also dealing with a far-right movement that is gaining momentum and converging with similar groups in the United States.
What You'll Learn
Rising cost of living
The rising cost of living in Canada has been a cause for concern for many Canadians. In 2022, Statistics Canada reported the largest ever increase in the Consumer Price Index (CPI) since 1982, indicating a significant rise in the price of goods and services across the country. This has had a noticeable impact on various aspects of daily life, from groceries and fuel to housing and education.
One of the most prominent concerns for Canadians is the increasing cost of groceries. The most recent Consumer Price Index report from Statistics Canada showed an 8.5% increase in food prices in July 2023 compared to the previous year. This has led to a decrease in the amount of food that consumers are purchasing, with household food volumes declining in six out of eight quarters. Additionally, food banks across Canada are reporting record levels of demand, highlighting the challenges that many families are facing in affording basic necessities. The war in Ukraine has also contributed to rising food costs, particularly due to disruptions in wheat, sunflower oil, and fertiliser supplies.
Another area of concern is the high cost of housing. The average price of a home in Canada has continued to rise, with the Canadian Real Estate Association (CREA) reporting an average price of $668,754 in July 2023, up 6.3% from the previous year. This has made homeownership increasingly unattainable for many Canadians, especially in more densely populated provinces such as British Columbia and Ontario, which have the highest average home prices in the country. As a result, many people are turning to shared accommodation or considering moving to less expensive provinces.
Transportation costs have also been impacted by rising fuel prices. In 2022, Canadian pump costs soared to record heights, and experts predict that fuel prices will continue to rise in 2023, causing further financial strain for Canadians.
To address these challenges, the Canadian government has introduced several policies and support measures. The Affordability Plan includes initiatives such as the Goods and Services Tax Credit, which was doubled for a six-month period, providing additional financial support to low- and modest-income individuals and families. The Canada Workers Benefit is another program aimed at supplementing the income of low-paid workers. Additionally, the federal government has made all Canada Student Loans and Apprentice Loans permanently interest-free, and introduced the Canada Dental Benefit to promote affordable dental care for children.
While these measures provide some relief, the rising cost of living in Canada remains a significant challenge for many residents, and it is likely to persist in the near future.
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Poor standard of living
Canada's standard of living is declining relative to other countries, and this is expected to continue unless policymakers make significant changes. From 2014 to 2022, Canada's GDP per-person growth declined sharply, ranking third-lowest among 30 countries. Consequently, Canada's GDP per person increased by only $1,325 during this time, compared to the OECD average increase of $5,070.
There are several reasons for this decline, including historically weak business investment over the past decade, a substantial shift in the composition of permanent and temporary immigrants towards those with less education and fewer skills, and subdued technological innovation and adoption. These factors have resulted in very low or negative labour productivity growth.
Canada's markets are also characterised by high concentration, with a few firms dominating entire sectors. This lack of competition has allowed a handful of families to amass wealth while the majority see little benefit. The wealth gap between the rich and poor in Canada widened at the fastest rate on record in 2023.
Canada's health care system is lagging behind its European counterparts, and the legal system has become expensive and slow. Young Canadians have reported low happiness scores compared to their international counterparts.
Canada's standard of living is also impacted by high food prices, which have pushed many families towards poverty. The country's aging demographic and rising populism further complicate its economic trajectory. Canadian policy has neglected critical investments in infrastructure, digitalization, research and development, and education.
To reverse this decline, Canada needs to foster competition and innovation, address the issues of protectionism, and strategically orient itself towards global competitiveness. Bold and decisive action is necessary to chart a course back to prosperity.
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Human rights violations
Rights of Indigenous Peoples
Canada has a long history of systemic discrimination against Indigenous peoples, which has led to persistent human rights abuses. One of the most pressing issues is the lack of access to clean and safe drinking water in many Indigenous communities, posing significant health risks. Despite promises made by Prime Minister Justin Trudeau to end drinking water advisories on First Nations reserves by 2021, 28 communities remained subject to long-term water advisories as of September 2023. The Canadian government has also failed to adequately address the issue of missing and murdered Indigenous women and girls, with Indigenous women facing a higher risk of violence and adverse health outcomes.
Immigration Detention
Canada's immigration detention system has been criticised for its treatment of detainees, including persons with disabilities and those seeking refugee protection. Detainees are often handcuffed and shackled, held indefinitely, and placed in provincial jails alongside individuals facing criminal charges. The Canada Border Services Agency (CBSA), lacking independent civilian oversight, has been implicated in serious human rights violations. However, some progress has been made, with several provinces terminating their immigration detention contracts, limiting the power of the CBSA to detain individuals.
Corporate Accountability
Canada is home to a significant number of mining companies operating globally, yet the Canadian government has been criticised for failing to ensure adequate oversight of these companies' activities abroad. The Canadian Ombudsperson for Responsible Enterprise (CORE), established to address corporate human rights challenges, has been deemed ineffective due to a lack of authority and independence. However, recent legislative efforts, such as Bill C-262 and Bill C-263, aim to strengthen accountability for human rights abuses linked to Canadian companies' operations overseas.
Climate Change Policy and Impacts
As a major emitter of greenhouse gases, Canada has contributed significantly to the global climate crisis. Despite pledges to reduce emissions, Canada's current climate goals fall short of the Paris Agreement targets. Additionally, the government continues to permit oil and gas pipeline expansions and plans to increase fossil fuel production, disregarding its human rights obligations. The impacts of climate change disproportionately affect Indigenous communities, and the government has been criticised for failing to implement adequate measures to support their adaptation and ensure access to food subsidies and health resources.
Sexual Orientation and Gender Identity
The Canadian government has taken notable steps to advance the rights of lesbian, gay, bisexual, and transgender (LGBT) individuals, both domestically and internationally. However, violence and discrimination against LGBT individuals persist, with reports of hate crimes and online harassment. Additionally, the rights of transgender individuals have been contested, particularly regarding the use of chosen names and pronouns for students in schools, with some provinces implementing restrictive policies.
Systemic Racial or Ethnic Violence and Discrimination
Canada has reported an increase in discrimination and violence against ethnic minority groups, with a particular rise in hate crimes targeting religious and sexual orientation minorities. Indigenous communities continue to face systemic racism and discrimination, with disputes over land claims, self-government, treaty rights, and allegations of police brutality. Indigenous individuals are overrepresented in negative social indicators, such as poverty, chronic health conditions, and violent crime, and underrepresented in leadership and political positions.
While Canada has made some efforts to address human rights violations, significant challenges remain, particularly regarding the rights of marginalised groups. These issues demand urgent attention and comprehensive solutions to ensure the protection and promotion of human rights for all Canadians.
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Political issues
Canada has been facing a myriad of political issues in recent times, with some sources claiming that the country seems to be in a state of turmoil. One of the major issues is the leadership of Prime Minister Justin Trudeau, who has been facing growing calls for his resignation. Trudeau has been criticised for his handling of various issues, including his failure to address the concerns of marginalised groups such as Indigenous peoples, immigration detainees, people with disabilities, and older people. There have also been concerns about his government's inaction on climate change and lack of oversight for Canadian companies operating abroad.
In addition to the issues with the federal government, Canada is also facing political issues at the provincial level. For example, the Quebec Liberal caucus has joined the Atlantic and Ontario caucuses in calling for Trudeau's resignation. There are also tensions between the federal government and some provincial governments, such as British Columbia, Nova Scotia, Alberta, and Manitoba, over the issue of immigration detention. These provinces have given notice of the termination of their immigration detention contracts with the federal government, which means that the Canada Border Services Agency (CBSA) will no longer be able to detain refugee claimants and migrants in their provincial jails.
Another issue facing Canada is the threat of annexation by the United States. Former US President Donald Trump has made comments about using 'economic force' to absorb Canada, and while these threats may seem far-fetched, they have caused concern among Canadian politicians and citizens.
Canada is also facing a housing crisis, with some claiming it is the worst out of all Western countries. The high cost of housing, coupled with stagnant wages, has made it difficult for many Canadians to afford a place to live. This issue is particularly prominent in desirable cities such as Vancouver, where the median price for a one-bedroom apartment is around $2,000 per month.
Furthermore, Canada is facing issues with its healthcare system, particularly regarding the recognition of foreign-trained physicians. While Canada needs doctors, it can be difficult for those trained outside the country to obtain residencies and practise medicine in Canada. This has led to a talent bleed, with many trained professionals moving to the US or other countries where their qualifications are recognised.
Overall, Canada is facing a variety of political issues that have caused concern among its citizens and politicians. While some of these issues may be overblown by political pundits, they highlight areas that need attention and improvement.
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Climate crisis
Canada is currently facing a climate crisis, with the country contributing to global warming and experiencing its effects. As one of the top 10 global greenhouse gas emitters, and one of the highest per capita emitters, Canada is taking a toll on human rights around the world. The country's climate goals fall short of the Paris Agreement's goal to limit global warming to 1.5°C above pre-industrial levels.
Canada is the top public financier of fossil fuels among G20 nations and plans to increase oil and gas production through 2050. The Canadian oil sands are among the most carbon-intensive and polluting oil production methods globally. The government continues to permit oil and gas pipeline expansions, including on First Nations' lands, disregarding its human rights obligation to adopt robust climate mitigation policies.
The effects of climate change are already being felt across Canada, with several regions experiencing devastating heat waves, wildfires, and flooding. The North, much of which is underlain by permafrost, is warming at more than double the global rate. The ocean surrounding Canada has also warmed and become more acidic and less oxygenated, posing a threat to marine life.
Climate change poses risks to physical infrastructure, coastal and northern communities, natural resources, biodiversity, ecosystems, ecological cycles, and human health. Increased wildfires, heat waves, and vector-borne diseases put lives at risk, while more frequent droughts affect forests and agriculture, impacting production, livelihoods, and the food supply.
The Canadian government has implemented strategies and initiatives to address climate change, such as carbon pricing, clean electricity, transportation, and building innovations. However, these efforts have been criticized for lacking strong plans or actions to back up climate targets.
The climate crisis in Canada is an ongoing issue that requires urgent attention and more effective solutions to reduce greenhouse gas emissions and protect vulnerable communities from its deadly effects.
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Frequently asked questions
There are a variety of issues causing problems in Canada, including a housing crisis, a cost of living crisis, high taxes, high inflation, and high crime rates.
The Canadian government, led by Prime Minister Justin Trudeau, has been accused of inaction and failing to address these issues. There are also concerns about the government's handling of human rights, immigration, and climate change.
The far-right in Canada has gained more power and influence, with connections to similar groups in the United States. This has led to protests and convoys that have disrupted Canadian cities and strengthened financial ties between the two countries' far-right groups.
Canadians are struggling with the high cost of living and inflation, feeling a sense of hopelessness and misery. There are also concerns about the quality of essential services, such as healthcare and public safety, which are not meeting the needs of the population.