Reactions to the Fall Economic Statement continue to roll in, so I figured I would highlight a couple of them. On the subject of housing, pretty much everyone is unhappy with what was on offer, in spite of the fact that the federal government didn’t have a lot of room to manoeuvre as they try to avoid juicing economic growth too much, which would put upward pressure on inflation (and the provinces are already doing just that).
To that effect, here’s a thread from Mike Moffatt on things the federal government could have done that won’t impact the inflation situation.
https://twitter.com/MikePMoffatt/status/1727301177833132254
Kevin Milligan delves into the debt and deficit figures in this thread, and provides a dose of perspective sauce for all of the hyperventilating that is coming from certain quarters and voices, particularly as debt servicing charges have risen. As well, I’m highlighting this one tweet about just how big the increase is in relative and historical terms, because again, perspective.
The question of fiscal sustainability looks at whether the trajectory of a country is sustainable without large fiscal adjustments (e.g. tax increases or spending cuts).
Fiscal sustainability analysis does *not* assess the quality of spending.
— Kevin Milligan (@kevinmilligan) November 22, 2023
What about federal debt service? It has jumped up compared to 2021 for sure. But unless you think bond rates are going to jump up 300 bps again (and I don't), there's no reason to think debt service/GDP will jump.
We're still close to historic lows on this measure. pic.twitter.com/Xo9VaqCdzM
— Kevin Milligan (@kevinmilligan) November 23, 2023
As well, Lindsay Tedds explains in this thread why she thinks the government’s plans to limit short-term rentals is going to be far easier said than actually done (and that they may not have thought it through).
https://twitter.com/LindsayTedds/status/1727491807834177690
Ukraine Dispatch:
The death toll from the Russian strike on the hospital in Selydove has risen to three. The Russians are reported to be sending fewer troops and less equipment to Avdiivka after failing to capture it in a major assault. President Volodymyr Zelenskyy warned of a “difficult defence” on the eastern front as the winter cold sets in. Ukraine’s coal industry has had to start hiring women and overturning policies that barred them from working underground because of the war.
https://twitter.com/ukraine_world/status/1727376980851486836
Military: Ukraine repels new attacks near Avdiivka, destroys almost 80% of Russian equipment.
Russia deployed several columns of armored vehicles during unsuccessful attacks near Avdiivka on Nov. 22, losing almost 80% of their equipment.https://t.co/3JPZCcqxyF
— The Kyiv Independent (@KyivIndependent) November 23, 2023