Building permits crash, sparking fears of depression

The value of building permits declined some 23 percent last month, which echoes the collapse of the Great Depression.

The value of building permits declined some 23 percent last month, which echoes the collapse of the great depression, according to Blacklock's Reporter.

Treasury Board President Jean-Yves Duclos said that "We need to prevent that recession from becoming a depression," which is now less-likely after this decline.

"A recession becomes a depression when a government doesn’t take immediate, quick and solid actions in response to a severe economic situation like the one we’re currently experiencing," added Duclos.

The value of construction activity dropped from $1.9 billion to $1.4 billion, which shows a 23 percent decline nationwide. In 1930, the value of these building permits similarly fell 29 percent.

Ontario, British Columbia, and Quebec all felt these effects most severely due to the  construction restrictions put in place by their respective provincial governments.

Having said this, PEI, New Brunswick, and Manitoba are also feeling the strain, with the issuing of new building permits falling sharply last month. Indeed, the island province of PEI did not issue a single building permit last month.