The Bank of Canada’s decision to raise its key interest rate to its highest level in 22 years sent a clear message: the economy is still too hot. It’s led some experts to wonder if a recession is needed to cool down the economy. Lauren Bird speaks to CBC’s Peter Armstrong about what to expect.
»»» Subscribe to CBC News to watch more videos:
Connect with CBC News Online:
For breaking news, video, audio and in-depth coverage:
Find CBC News on Facebook:
Follow CBC News on Twitter:
For breaking news on Twitter:
Follow CBC News on Instagram:
Subscribe to CBC News on Snapchat:
Download the CBC News app for iOS:
Download the CBC News app for Android:
»»»»»»»»»»»»»»»»»»
For more than 80 years, CBC News has been the source Canadians turn to, to keep them informed about their communities, their country and their world. Through regional and national programming on multiple platforms, including CBC Television, CBC News Network, CBC Radio, CBCNews.ca, mobile and on-demand, CBC News and its internationally recognized team of award-winning journalists deliver the breaking stories, the issues, the analyses and the personalities that matter to Canadians….(read more)
BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
Is a recession needed to cool Canada’s economy?
In recent years, Canada has been experiencing strong economic growth, leading to fears of overheating. This has sparked a debate among policymakers, economists, and the public about whether a recession may be needed to cool down the Canadian economy.
On one hand, proponents of the idea argue that a recession could help address some of the issues associated with a rapidly growing economy. These issues include high inflation, overvalued assets, and unsustainable levels of consumer and business debt. A recession, they argue, could help reset the economy, leading to more sustainable growth in the long term.
Furthermore, a recession may also lead to a slowdown in the housing market, which has been a significant concern in Canada, particularly in major cities like Vancouver and Toronto. A cooling housing market could help alleviate some of the affordability issues that have arisen in these areas.
On the other hand, opponents argue that a recession is not the solution to addressing the challenges of a growing economy. They point out that recessions can have severe negative consequences, such as job losses, business closures, and financial hardship for many Canadians. A recession could also exacerbate inequality and poverty, particularly for vulnerable populations.
Moreover, a recession would also likely lead to a decline in government revenue, making it more challenging to support social programs and invest in critical infrastructure when it is most needed.
Instead of a recession, opponents advocate for targeted policy measures to address specific challenges in the economy. For example, implementing tighter monetary policy to curb inflation, introducing measures to cool the housing market, and promoting responsible borrowing and lending practices.
It is important to note that predicting and managing the business cycle is a complex and challenging task. While it is essential to address the issues associated with a growing economy, a recession is not the only solution, and it may even create more problems than it solves.
In conclusion, while a recession may seem like a straightforward way to cool down an overheating economy, it is not without significant risks and negative consequences. Instead, policymakers and economists should focus on implementing targeted measures to address specific challenges in the economy, without resorting to a recession as the only solution. It is essential to strike a balance between sustaining economic growth and managing potential risks, for the long-term benefit of all Canadians.
so what do you think? when inflation will cool down then the real estate prices will go down and rent too?
Canada economy isn’t hot. Government spending is larger than the economy
This didn’t age well .!! We’re in a major recession now
9 hikes correction by now
That’s why really middle classes.. got stuck and lower population .. Canada.. going for .. downhill..
no more financial help for “no working for gaining people “
no personal needs/rights..
even dogs.. do whatever want, do their best todo with tails waggling..
Unless paid enough TAX in canada…
The biggest thing I learned from this video was 50% of investing is buying good companies at good prices and the other 50% is controlling your emotions when . market is moody.I realized that the secret to making a million is making better investment. I always tell myself you don't need that new car or that vacation just yet and that mindset helps me make more money investing.
Malinvestment and poor leadership have destined Canada to be a net loser for the decades ahead.
Odds are the people criticizing rate hikes as being “the wrong tool” are biased fools that bought into the housing bubble
Freeland needs to be jailed .!! She’s a w.e.f puppet ..!!! Jail them all
So….we need a recession to get inflation under control but the incompetent and corrupt Liberal government that spends like a pack of drunken sailors has absolutely nothing to do with it whatsoever. I can really tell I'm listening to a CBC documentary when they come up with every possible reason to not blame Trudeau.
What do you mean by hot?????? Im so confused
Maybe poeple are high lifestyle.
The problem with housing in Toronto and all of canada is this toxic and dangerous 'mass immigration'. We're trucking in unskilled immigrants by the hundreds of thousands if not millions per year now. It's insane! All businesses that grow extremely fast in an unbalanced way all fail. It's the same for countries. We simply don't have the housing for our current situation not to mention continued mass immigration. We moved from Toronto to closer to Niagara for better housing affordability. It worked but we pay through the rough for gas now and there's no daycare out here. We live in a daycare desert. It's common in the burbs and it's not ok. Gen Z and Millennials are going to pay for these old Boomer ideologies. It's because boomers failed to repopulate adequately that they justify mass immigration. It's the boomers that are the ones saying that we need mass immigration to continue having a workforce in the economy otherwise our standart of living will decrease by 20%! It's the biggest BS! There's no data behind their theory. It's all theory. Don't listen to them. The more people that come into canada skilled or unskilled the more housing costs increase and so does the rest of costs of living. Don't listen to the boomers. They are the problem. Gen Z complains that less then 3% of housing is being Airbnb'd. Thave no idea what mass immigration has been doing to housing and what it will continue to do for many years unless it's stopped!! Dangerous and toxic mass immigration is what we need to be talking about.
They should all be in jail, let alone continuously destroying canada
Canada is so corrupted at the government level when it comes to economic measures, that at this point the only solution they can find is to create a recession? the injection of printed money into the economy is not a good measure of how the economy is doing, since most of it was given to the corporations to keep up the shared of job creation. Sending checks to people using the environment or carbon as an excuse so that that money can trickle down into the streets. The immigration policy is only a step towards the destruction of whatever little benefits Canadian workers had, the amount of people the government has allowed to come to work in Canada is just a way to keep the wages as low as possible, while inflation is going bananas, and it's laughable to hear the mainstream media say that inflation is at 4.5% when it feels like on most things the prices have gone up by a 100%, how do they explain that? The first step is to bring in a government that is going to look after the well-being of the majority, not the One %, that is the only way to eliminate the rampaging corruption that is taking hold of our country
FREELOADER FREELAND
Job growth in Canada is a joke right now
1) Companies are laying off employees
2) Companies are reducing work hours for hourly wage employees
3) New immigrants on PR are unable to find even basic jobs
4) Majority of the huge surplus of international students are unable to find a normal part time job.
A government saying lies is a sign of a horrible government
Canada as country has failed its people by bringing them to go homeless with rising cost of limit.
Inflation is nation killers. The b.o.c. and this government are criminals
To my average Canadian bros and sisters, we understand what you’re going through and we empathize with you all. Stay strong. -average American.
We never got out of the 2008 recession, just saying.
the bank interest hikes is what is making everything go 22 years ago people could afford food and gas and rent not anymore
lower food and gas and rents we wouldn't be going through all this
Great presenter!
If the government wants to go to the jugular for cooling down the economy it should make burst the housing bubble…
We have a country full of left wing WEF traitors.
Somehow we omit that upwards of 80% of all transactions since 2021 are what they refer to as "uninsured". Fools… hike er Tiff… this is earned
This is just a result of an incompetent people governing the country
I thought we were already in a recession? It sure seems that way
FREELAND, what a PHONEY RESPONSE. NO ONE WANTS YOUR EXCUSES. YOU have done NOTHING, to HELP CANADIANS.
We are governed by clowns.
You're funny! You guys pushed us into this mess, and you know what you did. This recession is not stopping, and more will come. Keep fooling yourself
Anyone remember she said only deep pockets will walk out ok ? Then they used it as an opportunity to increase the cost to all Canadians .
Duhhh. Now eyz understand. Duhhh tank you CBC yours the best. 3:24
I wouldnt trust anything this inexperienced pos says
So my takeaway from that is another year of hikes! What a piss off!! Nowhere in this report is price gouging mentioned! The "haves" get to raise prices to protect their interests where as the "have nots" have to pay for those increases regardless of the cost. Record profits should also be a factor when considering what action should be taken, not just GDP. What good is it that "job numbers increase" when people need two jobs to make ends meet?
Watching from India ma'am
Trudeau needs to resign
The CBC is nothing more than a paid mouth piece for the liberals. Defund the CBC!
Recession? Dream on. Canadian government will make sure our economy will be roaring through any fear. GDP growth is just a number, right? How much effort does it take for the Canadian government to produce a number?
What about when she said we need to pay more so we can make better decisions? Hows that working out ? This transition will take years tell the truth how fast do we work in Canada? In reality not very quickly or effective.