April 17, 2024
The Covid crisis brought to my attention the Canadian Government’s recent flood of announcements to address the ‘housing crisis.’ To contextualize this ”crisis,” I delved into statistics. I discovered that sixty-five percent of Canadians own their homes (and therefore experience no housing crisis), and the income-to-house price ratio has skyrocketed over the last decade. This has created significant hurdles for young people, making stepping onto the property ladder increasingly tricky.
However, the billions of dollars announced to encourage home construction seem overkill. The demand for housing, which many studies concluded resulted from the recent surge in international migration, may be reduced by government policy, limiting future immigration flows. Mortgage rates may also come down soon, alleviating the need to solve a “crisis.” However, throwing vast amounts of money at a sudden “crisis,” which has evolved recently, reminded me of the pandemic’s beginning. Let me describe.
The Canadian Minister of Procurement ordered 419 million Covid vaccines at the pandemic’s onset, costing nine billion dollars. The experience of Italy and New York State with Covid was a stark reminder of the potential devastation without vaccines. However, with a population of 38 million people in 2020, Canadians would receive ten vaccines each. The Public Health Agency of Canada recommended two doses for vaccination and boosters every six months. So, the vaccines purchased would suffice for five years for all Canadians.
As a result of publicizing the dangers of Covid, over 80 percent of the population raced to get the first two shots. Although the vaccines kept coming, and booster shots were widely available, people decided that two vaccines were sufficient, and fewer and fewer people took a third or fourth dose. By the time the sixth shot, the XBB.1.5 Omicron subvariant designed to shore up protection against the SARS-COV-2 descendants came about in late 2023, only fifteen percent of the population decided to receive the dose.
By late 2023, people considered Covid more of a nuisance than a dangerous sickness, similar to having a cold. With all the vaccines ordered but not used, the British Medical Journal called Canada one of the most vaccine-hoarding countries in the world. The Director General of the World Health Organization, in 2022, remarked that Canada was hoarding vaccines at the expense of poorer nations. Of the over 400 million vaccines contracted, only 105 million were used by December 2023 in Canada.
It’s disheartening to note that policymakers seemed to overlook the fact that vaccines have expiration dates. They also seemed to disregard the reality that the virus mutates, necessitating the development of updated vaccines to maintain effectiveness. As a result, millions of doses expired and were unusable However, the contracts for the original orders still have to be honored. For instance, Canada still owes C$350 million to Novavax, one of the vaccine manufacturers, for vaccines ordered.
So, was Canada successful in avoiding Covid? Can we put some metrics to success? The Canadian experience with Covid indicates that Canada fared well among the G7 countries in handling the pandemic, with less than a thousand deaths per million people, second best after Japan. However, we did spend a significant amount of money, and much of it was wasted. It is astounding that Canada used only 25 percent of the vaccines purchased. I wonder if we could have been more agile and intelligent in our decision-making, considering people’s willingness to receive periodic shots over the years and the expiry dates of the millions of vaccines ordered.
I also wonder if the Government has learned anything from throwing so much money at the Covid issue that could be applied to their new “housing crisis ” so that Canada can avoid throwing good money away with minimal results.