this post was submitted on 19 Jul 2024
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[–] No_Eponym@lemmy.ca 14 points 1 year ago (1 children)

but have nothing to back it up with

Didn't read the article eh? How 'bout this:

Higher interest rates alongside decades-high inflation in 2022-23 ate away at household purchasing power.

Weaker demand spurred a rise in the unemployment rate of a size that historically only happens in recessions.

For six of the past seven quarters, real per-person output has fallen alongside rising unemployment.

Per capita GDP has fallen to 3.1 per cent below 2019 levels.

The economists noted the only thing that prevented negative GDP growth in consecutive quarters – the typical definition of a recession – was a wave of new consumers

Consumer spending accounts for more than half of GDP

Seems like a lot to "back it up with," as it were.

[–] Randomgal@lemmy.ca 1 points 1 year ago (1 children)

The last line kind of implies that immigrants had an active part in keeping things afloat.

[–] No_Eponym@lemmy.ca 4 points 1 year ago (1 children)

I mean, they are? They are additional consumers in an economy increasingly being driven by consumer spending, where spending per person is falling. So, adding more people keeps things afloat even though each person is spending less.

The main issue is that high immigration is a bandaid (doesn't address the issues causing spending to fall in the first place, and new spenders just get sucked into the same crappy economic climate once they get here as everyone else) and it comes with a host of other issues (e.g. increasing scarcity of high-quality, appropriate and affordable housing leading to further reduction in consumer spending).

[–] Randomgal@lemmy.ca 1 points 1 year ago

Uhhh... Yeah. Sure. I wasn't disagreeing, just highlighting it among the rest of the discussion.