The Role of Immigration in Canada's Economic Growth

Canada faced economic challenges, including weak growth and an aging population. Justin Trudeau's solution was to boost the population and workforce through immigration. This strategy aimed to increase the potential growth rate, which represents the economy's ability to grow without causing inflation. Immigration contributed to capital, productivity, and labor supply, which are crucial for growth. Despite concerns about the effect on inflation, immigrants often work in sectors like manufacturing, leading to lower prices and increased sales. However, this growth has not necessarily improved the living standards of the average Canadian, and immigration may have impacted the housing market by creating a shortage of homes and escalating rents.