this post was submitted on 16 Nov 2025
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Carney’s austerity plan risks hollowing out government and hurting service delivery

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[–] wampus@lemmy.ca 8 points 3 months ago* (last edited 3 months ago)

Not surprising given the hiring spike under Trudeau. Like since 2019 public sector jobs increased at roughly double the pace of private sector, and had gotten to the point that public sector job characteristics skewed national averages on things like wage growth.

So stats like the increase in national average incomes/wages, was largely driven by gains for public sector employees -- ones who's salaries are paid by the collective taxation of primarily private sector employees. It's sorta like seeing a spike in people demanding food, but no change in the number of farmer's supplying that food -- if the supply doesn't catch up quick, you're going to have less people (or at least, increased cases of hunger/starvation). Some people need to go back to farming, if you're going to keep an equilibrium. Especially if the people eating, have gotten union-pushed food/plate increases, have become significantly more numerous in comparison, and are getting far more of the total food supply by percentage produced.

Significantly increasing taxes on the rich might help, though I imagine it still wouldn't be enough to support the recent increases in public sector costs. That's sort of moot though, as the gov in general is loathe to increase taxes on the rich.