What will the consequence be if the housing price in Canada keep rising? Will it lead to an economic downfall in the Canadian society? According to a blog written by Angelica deBonis, there will be less people being able to live in these cities with higher housing price, like Toronto and Vancouver. In addition, it may cause an economic downfall in the Canadian society leaving us “Homeless and Jobless in Vancouver.” However, I am not totally agree with Angelica.

Admittedly, as the housing price going up, people have to pay more money to get a house. But, it does not mean less people can live in these cities. Where there is demand, there is supply. The only reason why the price of housing keeps rising is that the demand exceeds the supply. If less and less people live in these cities, the price will definitely go down. Therefore, maybe you and me have to move out because we could not afford the price. However, there are still plenty of buyers who are planning to purchase some houses in first－tire cities.

Also, The effect of increasing the minimum wage for youth on unemployment is uncertain. The structure of the labor market is very important. For example, if the labor market is a monopsony, a minimum wage may not cause unemployment.

One thing I agree with is that for those young adults who just starting out in the work force are having trouble finding jobs with sufficient salary to pay back their student loans, never mind buy a house in a major city. It really add stress for the youth.

Blog link: http://www.economicshelp.org/labour-markets/disadvantages-minimum-wages/