Unpacking Housing Costs, Student Debt, and the Future of Opportunity for Young Canadians

Introduction

Welcome to Part 4 of our series, fact-checking Pierre Poilievre’s recent interview with Dr. Jordan Peterson. This time, we’re tackling a topic that resonates deeply with Canadians: the challenges facing young people today. Poilievre and Peterson highlighted issues like high housing costs, student debt, and limited opportunities, painting a grim picture of youth disillusionment.

Poilievre claims his policies will create a more entrepreneurial and opportunity-rich environment, but as always, the devil is in the details. In this post, we’ll explore these claims and examine Peterson’s perspectives, some of which feed into a broader conservative narrative.

Young People Are Disillusioned: Limited Opportunities, Housing Costs, and Student Debt

Current State of Youth Opportunities in Canada

• Employment Trends:
  • Youth unemployment (ages 15-24) in Canada is around 10% as of 2023, higher than the overall national average (~5%).
  • Many young Canadians report underemployment, with jobs that don’t match their qualifications or pay a sustainable wage.
• Entrepreneurial Challenges:
  • Young Canadians face significant barriers to starting businesses, including:
  • Limited access to capital.
  • High costs of living and rent, which consume disposable income.
  • Risk aversion due to student loan burdens and uncertain economic conditions.

Housing Costs

• Unaffordability:
  • The average home price in Canada exceeds $700,000, while in cities like Toronto and Vancouver, it’s well over $1 million.
  • Rent has also skyrocketed, with the average one-bedroom in Toronto now costing over $2,500/month.
• Wage Stagnation vs. Housing Costs:
  • Over the past 20 years, housing prices have risen by 318%, while wages have grown by only 42%.

Student Debt

• Debt Load:
  • The average Canadian student graduates with about $26,000 in student loans, though this figure is higher for professional degrees.
  • Despite the federal government eliminating interest on federal student loans in 2023, provincial loans still accrue interest in many provinces.
• Impact on Life Choices:
  • High student debt delays life milestones like homeownership, starting businesses, and even marriage or having children.

Poilievre’s Policies: Entrepreneurial and Opportunity-Rich Environment

Proposed Policies:

• Cutting Taxes and Reducing Housing Costs:
  • Housing Supply: Incentivizing municipalities to build more homes and reduce development charges.
  • Tax Cuts: Reducing taxes for small businesses and workers to leave more money in Canadians’ pockets.
• Reducing Red Tape:
  • Making it easier for young entrepreneurs to start and grow businesses by cutting bureaucratic hurdles.
• Addressing Student Debt:
  • Poirlievre’s platform has no specific proposals to address student debt or education costs.

Will These Policies Create Opportunities?

While cutting taxes and increasing housing supply may help, these measures don’t directly address the structural barriers young Canadians face, such as affordable education and startup capital.

Dr. Jordan Peterson’s Positions: Helpful or Out of Touch?

On Housing Costs

“You have an entire generation who can’t afford a roof over their head, and that creates resentment. It’s not just financial—it’s deeply psychological. If you feel like you’ll never own anything, what’s the incentive to build a future?”

• Analysis: Peterson’s comment conflates homeownership with housing stability, missing the real issue: affordable housing. In major cities like Toronto, the focus shouldn’t be on making homeownership accessible to all but on increasing affordable rental options and housing for the under-housed.
• Critique: By framing the issue as psychological, Peterson risks oversimplifying a systemic crisis. Ownership isn’t the only form of stability, and this perspective feels out of touch with urban populations.

On Opportunity

“If you reduce taxes and red tape, how do you ensure those savings don’t just benefit corporations or landlords? What’s the mechanism to make sure young people see the benefits?”

• Analysis: Here, Peterson challenges Poilievre’s optimism, raising a valid point: tax cuts alone won’t guarantee meaningful opportunities for young Canadians. Without mechanisms to ensure equitable distribution of savings, the benefits may bypass those who need them most.

On Student Debt

“Crippling debt out of the gate kills the entrepreneurial spirit. It’s hard to take risks when you’re already drowning.”

• Analysis: This is one area where Peterson aligns with young Canadians’ lived experiences. Student debt does stifle risk-taking and delays key milestones, but solutions require more than acknowledgment. Poilievre’s platform lacks detailed plans to address this critical issue.

Key Takeaways

• Housing Affordability, Not Homeownership: The focus should be on creating affordable housing for all, especially the under-housed and unhoused.
• Ownership Beyond Real Estate: Peterson’s comment that people need to “own something” to build a future is reductive. Ownership can come from entrepreneurship, career growth, or community involvement.
• Opportunities in Cities: Major cities like Toronto offer opportunities for young people to grow, learn, and thrive. These benefits go far beyond real estate.
• Focusing on Tangible Solutions: Poilievre’s policies should target affordable education, rental housing, and access to capital for young entrepreneurs instead of fixating on outdated ideas about homeownership.

Read Part 5 Here.

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