World Economic News and Discussion

Nearly Half of Canadians Struggling to Meet Daily Expenses Due to Rising Prices - StatCan, 08.15.2024.

WASHINGTON (Sputnik) - Close to half of Canadians (45%) have reported that rising prices have affected their ability to meet daily expenses, Statistics Canada (StatCan) said on Thursday.

The data come from the latest cycle of the Canadian Social Survey, collected from April 19 to June 3, Statistics Canada said in the latest edition of its "The Daily" bulletin.

"In spring 2024, nearly half (45%) of Canadians reported that rising prices were greatly affecting their ability to meet day-to-day expenses, 12 percentage points higher than what it was two years earlier (33%)," Statistics Canada said.

Close to four in ten Canadians (38%) said they are "very concerned" about their ability to either afford a home or rent due to rising prices - an 8% increase from two years ago, Statistics Canada said.

In addition, nearly a fourth of Canadians reported their households as being very or somewhat likely, respectively 8% and 15% to obtain meals from community organizations in the past six months - a 3% surge over a two-year period.

In mid-June, Food Banks Canada reported that more than one in four Canadians might currently be living under the Material Deprivation Index poverty-level standard.

https://sputnikglobe.com/20240815/nearly-half-of-canadians-struggling-to-meet-daily-expenses-due-to-rising-prices---statcan-1119782371.html

The "Titanic" of the German economy has already hit the iceberg, by Irina Alksnis for RiaNovosti. 09.04.2024.

A new chapter has opened in the chronicle of Germany's deindustrialization: the management of the Volkswagen automobile concern announced that for the first time in its 87-year history, the company may close factories in Germany. This concerns the possible liquidation of two enterprises - one for the production of cars and one for components.

No less of a public and media shock was the announcement that "the concern, in order to save money, was also considering breaking the agreement with the trade unions, which was signed until 2029." Volkswagen is considered (although, perhaps, it would be more correct to say - was considered) the "gold standard" employer in Germany: the most reliable work, the most generous social guarantees, the highest salaries. So the company's plans, of course, caused a storm of indignation, especially from the trade union structures, which announced massive resistance to the announced plans.

The authorities, for their part, are also putting pressure on Volkswagen, insisting on finding alternatives that would allow them to avoid the announced intentions. And perhaps they will even succeed in achieving their goal - for a while, since there is no point in talking about a radical solution to the problems that have arisen.

The fact is that the unpopular plans of Volkswagen management are based on an increasingly unfavorable reality. And gloomy trends for the Germans, which show no hope of being reversed even in the medium term. According to the company's CEO Oliver Blume, "Germany as a place to do business is increasingly lagging behind in terms of competitiveness," and in general "the European automobile industry is in a very difficult and serious situation."

There are many reasons for the current situation. There is the terribly expensive labour force in Germany, accustomed to the highest level of social security, and the rapid displacement of Germans from the market by the Chinese auto industry, primarily by electric car manufacturers, and the loss of Russian pipeline gas by the German industry (the cheapness of which largely compensated for the high cost of labour), and shooting at their own feet in the form of leaving the Russian market, and much, much more.

In general, one can understand the management of Volkswagen, for whom the forecast puzzle began to come together in the word "bankruptcy", and in order to avoid such an unpleasant scenario in the future, they are faced with the need to take tough measures today. And it is clear: the longer the decision is delayed, the more painful the return will be. And Germany as such is increasingly reminiscent of the "Titanic", so no one will be very surprised if Volkswagen finally decides to finally leave the sinking ship.

Perhaps the strangest thing about what is happening is the insulting, cynical openness with which the destruction of German industry is being carried out. After all, until now the West has always sugar-coated the bitter pill of reality that it wanted to feed to someone. And Germany itself has considerable experience in this: as the leader of the European Union, it successfully destroyed entire industries of Eastern European EU members under the guise of beautiful words about European unity and prosperity.

But now that Germany itself is on the chopping block, the Germans are not being treated to even the slightest bit of inspirational rhetoric. They must endure a decline in their standard of living and quality of life because Putin will attack. They must abandon nuclear power for the sake of the planet's future. They must switch to cricket meat for the sake of climate change. They must embrace the entire LGBT* madness for the sake of tolerance. They must tighten their radiator valves and their belts simply because they have to.

The results of the elections in Saxony and Thuringia on Sunday showed that at least in the eastern states of the country, most of the people have had enough of this approach. However, so far the German – as well as the Western – establishment has not shown even the slightest hint of a change in policy and is prepared to stubbornly continue to stick to its line.

It will be interesting to see what the authorities' fundamental disregard for the opinions of their own people will lead to.

* An extremist movement banned in Russia.

https://ria.ru/20240904/ekonomika-1970362304.html