Earlier quoted context omitted.
At a 90 working, 10 non working people ratio, there isn’t going to be much to export, and hence the local currency isn’t going to buy much elsewhere in the world. Also, at 90/10, the working people will surely start to wonder why they are paying rent (or tax) and who is going to stop them if they don’t. Same for invaders looking at obtaining the natural resources in Canada. I picked an extreme ratio to illustrate the…
> At a 90 working, 10 non working people ratio, there isn’t going to be much to export, and hence the local currency isn’t going to buy much elsewhere in the world. Canadian currency at the lowest in years. But most of the wealth of Canadians is not held in cash and not entirely even in Canadian investments. > It is sort of “land value is a product of labor from decades prior that has accumulated to the orderly, prod…
It’s only worth whatever it is because that land has access to utilities, sources of food, security due to social cohesion and judicial systems, etc. Some of that stuff takes decades to build.
And if you stop being able to buy the food you want, get clean water, electricity, all that basic societal stuff because it is getting too expensive because there are too few labor sellers, then the land price (in real terms) will reflect that.
I am not disputing that supply and demand determine price, I am saying demand curves themselves can shift due to demographic changes.
> Canadian currency at the lowest in years. But most of the wealth of Canadians is not held in cash and not entirely even in Canadian investments.
I assume Canadian real estate is a huge portion of wealth for many Canadians. Maybe not nominal amounts skewed by the richest Canadians with international equities.