Economist: New Vancouver Tax Wrong Response To Housing

The video discusses the upcoming interest rate decision and its expected impact on the economy. Brett House, an economist, critiques government measures on the housing market, emphasizing the need for increased supply rather than restricting demand. The discussion also covers the role of foreign investment in Canada, the debate over developing Toronto's Greenbelt, and the potential for brownfield development. The video concludes with an analysis of recent housing market measures, including stress tests and capital gains tax changes.

What is the main critique of the tax on foreign buyers in Vancouver?

• It increases housing demand.

• It reduces foreign investment in Canada.

• It has no impact on house prices.

• It encourages urban sprawl.

Why is foreign direct investment in real estate considered beneficial for Canada?

• It tends to stay long-term and supports the economy.

• It provides short-term economic boosts.

• It can be easily withdrawn.

• It primarily benefits the securities market.

What is the argument against developing the Greenbelt in Toronto?

• It is politically unpopular.

• It would lead to increased urban sprawl.

• There is no available land within the Greenbelt.

• It is too expensive to develop.

What is a suggested alternative to developing the Greenbelt?

• Building more skyscrapers.

• Encouraging urban sprawl.

• Reducing housing demand.

• Focusing on brownfield development.

What is the potential impact of Vancouver's housing measures on other Canadian cities?

• More political stability in Montreal.

• Decreased housing prices in Vancouver.

• Increased foreign investment in Toronto.

• Higher energy sector growth in Calgary.

Which recent measure was considered 'low hanging fruit' by the Finance department?

• Encouraging urban sprawl.

• Reducing foreign investment.

• Closing the capital gains tax loophole.

• Increasing interest rates.

What is the purpose of extending stress tests to mortgages with more than 20% down payments?

• To reduce the number of home buyers.

• To encourage foreign investment.

• To increase housing demand.

• To ensure buyers can afford mortgages if rates double.