Pros And Cons Of Government Intervention

In short, lack of motivation in exchange for more red tape causes investors and landlords to move towards more profitable options. This movement of money and resources tends to negatively impact people trying to find a place to live, most notably the poor. The National Multi Housing Council (NMHC) states that prospective customers must pay finder fees to find a rental property due to a presumably growing scarcity of available housing. As if this were not bad enough, in some communities rental properties are handed down to friends and family, so they never quite leave the market. In order to obtain housing, new consumers are forced to pay “key money” and other fees. These costs tend to impact young, single, and poor families the most.

c) Increase in the inflow of new immigrants- One of the primary reasons behind the rise in the issue of homelessness in the country can be the recent trend of increased immigration in the country from other parts of the world. Canada, in the last few years, has developed immensely regarding economic and industrial aspects and the country currently boasts of its robust industrial, service and export sectors, which in turn attracts a lot of potential workers from all over the world, for a better standard of living. Apart from the employment sector, the education sector of the country is also one of the primary attractions in the country. Canada has some of the finest universities in the world, which attracts a huge number of students from across the country, which in turn increases the demand for housing in the country, thereby increasing their prices.

The government needs to provide more support and police hours to these types of neighbour hoods. The only reason the crime rates are up is due to the lack of cops in that area. Furthermore, the prices of houses have been increasing in Canada rapidly. To find a suitable place to live which is affordable is becoming really rare due to the increase in real estate. As the prices rise, the people who are not as fortunate as the rest of us are forced to live in deprived areas. This will cause the upbringing of children to be difficult which might ultimately lead to poverty. Thus, through providing funding for affordable and appropriate housing, Canada can start to diminish the homeless population.

Canada, is well known for being immigration friendly over the course of history and it is an ideology that Canadians value. Immigration offers an opportunity for Canadians to seal in crevasses within the Canadian economy and stabilizes it from leaks which causes inflations and recessions. However, as opportunity presents itself, trade-offs are likely to follow. Today, Canadians are facing challenges regarding unemployment rates as well as increases in the cost of living. According to Collacott Martin, a senior at Fraser Institute who represented Canada in the department of external affairs, the housing prices are rising due to an increase in population among large cities in Canada. Collacott, predicted that newcomers of Canada cost between

Those who argue in favor of rent control say that it is the only way to protect

Canada 's housing market is at an all-time high, they are known in Vancouver for having the most expensive housing market. This expensive market is not just a Vancouver problem, it is an issue growing throughout the nation and is depriving the average citizen to be able to purchase a house in their lifetime. There is a major issue with the state of the market and how it affects the current citizens. Issues have been rising where the average wage in Vancouver is estimated at seventy-one thousand per family household, according to the Vancouver Sun (2014), yet the average costing home as reached between five hundred thousand in the municipality to over one million within Vancouver, according to articles by Beth Lindsay (2015) of the Vancouver Sun, and Troy Landereville (2015) of The Maple Ridge Times.

Imagine living paycheck to paycheck and having your house be taken away. It’s scary and now you have nowhere to live. It happens to many people, and sometimes, like in the case of the financial crisis, they end up living on the streets a lot longer than they anticipated. “Breaking the Cycle” by Sian Griffiths for New Internationalist discusses chronic homelessness and how the Housing First is helping. Housing First was created to lower the number of individuals living in chronic homelessness and they’ve been successful. Housing First gives homeless individuals permanent housing without any barriers or conditions like sobriety (Griffiths 16). Buying housing and allowing homeless people to move in doesn’t sound like a perfect idea, but the program has an eighty percent success rate which is higher than any other program (Griffiths 16 ). Since Housing First has been so successful in the United States, Canada decided to begin the program in their own country. Canada was experiencing exactly what the United States was a decrease in health care and social services cost. So, not only was this program successful for homeless people, but

Within the past decade, Canada - specifically ontario, has seen and experienced a rapid increase in its housing market. Although some speculate a crash nearing, its strong growth in Ontario has become one of this decade’s largest issues. During the year of 2016 the average price of a home in the metropolitan area was $688,011, however, prices have increased by 33% in 2017 making the average home worth $916,000 dollars. This issue presents many difficulties as it affects Canada’s economy, it’s residents, immigrants, and more. Although some have tried to pass bills in order to reverse the increase, the presented plans are much worse. Take for example, Kathleen Wynne's proposed “foreign buyers tax”. With a plan as such being passed, all of

Another major cause of homelessness in Edmonton addressed by the committee is the lack of affordable housing available. According to the Canada Mortgage and Housing Corporation (2008) in 1999, the average two bedroom apartment rental rate was $650/month, by 2008 the amount for the same two bedroom apartment had risen to an average of $1,170/month – an increase of 80%. The rental increase, coupled with the historically low rental availability of about 1.5% correlated directly with the “drastic decrease in rental incentives” (Avison Young, 2010); the same rental incentives that generally gave a renter a break on damage deposit, first month’s rent or utility payments. So a major increase in rent saw many people losing their homes; a substantial decrease in availability added to people not being able to find new homes; and the almost complete absence of rental incentives blocked those who found a place to rent from obtaining the rental unit.

Every night there are at least 35,000 people who go without homes in Canada, yet, the Canadian government has little to show for prevention. The “social assistance” (welfare, disability support payments, old age security and employment insurance) provided does not begin to cover for basic living expenses. Today in Victoria, one month's rent in a studio apartment is anywhere from 800-1200 dollars, yet a single recipient of “social assistance” in BC will receive a total of 610 dollars to cover all of their basic needs. Many lower and middle-class Canadians live one day at a time having to make tough decisions whether to pay the hydro bill or fix their car. With the cost of living rising and minimum wage at 10.85 an hour, it makes it almost impossible to be above the poverty line, especially with single income

There is a lot of discrimination and wide separation of those owning housing and those who are homeless to try and get housing. The article states, “The supply of affordable housing has not kept pace with the needs of the population. There has also been a decline in the amount of affordable rental housing in many cities. Combine that with declining incomes and a widespread reduction in social benefits for low-income Canadians, and you get a population that has to spend a greater percentage of its income on housing.” This is a huge imbalance of those owning the house and having the money to own versus those renting the

Proper housing is crucial to a human being’s wellbeing, both mentally and physically. It is fundamental in ensuring good mental health, physical health, and it sets the basis for social inclusion in society. Housing is necessary for human beings to be able to survive and be able to protect themselves from the elements. It is recognized as a basic human need alongside food and water; thus, it is surprising that an estimated minimum of 235,000 people in a developed country like Canada remain homeless and an estimated one in five people cannot afford housing (Heffernan, Tracy; Faraday, Fay; and Rosenthal, Peter, 2015). Statistics such as these beg the question of whether or not the right to housing or the right to affordable housing is recognized in Canada. The answer to this question is quite complicated as there is no clear right in the Canadian Charter of Rights and Freedoms that recognizes a specific right to housing or shelter, however, under section 7 and section 15 of the charter which state that “Everyone has the right to life, liberty and security of the person and the right not to be deprived thereof except in accordance with the principles of fundamental justice” and “Every individual is equal before and under the law and has the right to the equal protection and equal benefit of the law without discrimination and, in particular, without discrimination based on race, national or ethnic origin, colour, religion, sex, age or mental or physical disability(Canadian

The author focuses on rising housing costs. Here is where myself and the author begin to part. Unlike the author I don’t believe the answer is this simple. Although the rates as he describes are rising faster than any other market or minimum wage. One most always look introspectively at a cause first before looking externally. The problem with blanket statement like: the singular reason is rising costs, is that it holds blameless those who choose not to better themselves. One of the major problems I see in the world is a sense of undeserved entitlement. If you can’t pay rent in downtown of city my solution is to look for housing elsewhere. I have moved across the country from my family for years and now am the closest I have been in over 4 years still 5 hours away. Growing up my housing situation has been just as unstable as many described in this piece. It was a sense of pride and entitlement that put me in that situation not rising costs. After leaving home and moving to California I found myself struggling one day to make rent, I was paying $1,800 a month just for rent let alone a car payment and utilities. Although this was unexpected and due to something I could not control I had to remedy the situation I cut back on unnecessary expenses, moved when my lease finished and now I refuse to ever be in that situation again. I am now here at UW-Madison pursuing an education that will allow me to be financially stable for the rest of my life. If I can make it with all of the setbacks I have had in my life, why shouldn’t we encourage others to do the same? Minimum wage although it should cover expenses for housing we all know doesn’t and we adjust our sights to accommodate for that. We get an education and better ourselves and those around us. This allows us the lives we want to live. In closing I hold the renters responsible

The future is uncertain, as such conventional wisdom dictates that governments must intervene in the economy to help enhance growth and ensure stability. However, is too much intervention a bad thing? There are many reasons why it is so but one such reason is that in an economy where there is excessive government intervention and ownership such as in the Soviet Union, there was a lack of risk and subsequently lack of innovation as rather than satisfying customers the concern of a producer in the system was to satisfy the state. The lack of a reward for working harder, due to all businesses being owned by the state reduces incentive to produce or innovate and this leads to inefficient outcomes in an economy. This is a contrast to a capitalist society where innovation and hard work can lead to personnel gain in the form of money. Price ceiling and price floors are price control mechanisms that are used to, respectively set a maximum price, and a minimum price. One such problem as a result of implementing these is that they will artificially cause a shortage or surplus, respectively, of the good or service due to affecting supply and demand. This prevents the good/services to be at the equilibrium price, which is where economic outcomes would be most efficient. So should governments intervene? Regardless of the aforementioned downsides this has always been a topic of debate between Keynesian economists and classical economists, but a widely accepted consensus is that some level

This specific report addresses the pros and cons of how much government intervention in the marketplace is necessary and appropriate. This report will cover four authors, Cunningham, Green, Friedman and Pertschuk. The authors have written extensively on consumerism and the protection thereof. This author’s goal is to break down some of the theories, which authors seem akin in their beliefs and which authors’ views are bipolar opposites.