Macklem and the Bank of Canada still fail to realize how much they’ve shredded their own credibility.
At this point, we probably don’t need to talk more about how Bank of Canada governor Tiff Macklem got it wrong over and over again.
Yet, a quick refresher is always fun.
When people in independent media like Yours Truly, along with a few prescient politicians like Pierre Poilievre were warning about the impending surge of inflation that would be caused by massive Liberal government spending and the BoC enabling that spending through a vast expansion of the money supply, those concerns were dismissed by Macklem and the BoC.
In fact, Macklem and the BoC told people that ‘deflation’ was the real threat.
Then, Macklem said inflation was ‘transitory’.
Then, Macklem said inflation was ‘transitory but not short-lived.’
At the same time, Macklem was telling people that interest rates would remain low for the foreseeable future.
What is the tie that binds all those claims by Macklem?
They were all wrong.
He didn’t just make one mistake, he made mistake after mistake after mistake.
It’s like the old “you had one job” meme.
Macklem had one job, and he couldn’t do it.
Now, he finds himself playing desperate catch up, with the BoC hiking interest rates fast and belatedly realizing that their credibility is ruined.
But if you though that meant Macklem would start building public confidence, think again.
In fact, he appears determined to remove whatever little remaining shreds of credibility he has left.
Having failed to do his job, Macklem is now telling Canadians they shouldn’t get higher wages:
Speaking at a CFIB event, Macklem claimed that inflation wouldn’t remain elevated, and told businesses not to adjust wages higher: “Don’t build that into longer term contracts. Don’t build that into wage contracts. It is going to take some time, but you can be confident that inflation will come down.”
And yet, Macklem and the BoC were just fine getting higher wages themselves, as Franco Terrazzano of the Canadian Taxpayers Federation explains:
“Macklem should look in the mirror instead of lecturing businesses about their workers’ pay.
The only thing growing faster than inflation is the Bank of Canada’s labour costs.
You get inflation. Macklem’s failing central bankers get bonuses.”
Macklem should look in the mirror instead of lecturing businesses about their workers' pay.
The only thing growing faster than inflation is the Bank of Canada's labour costs.
You get inflation. Macklem's failing central bankers get bonuses. pic.twitter.com/kGx9GawQ74
— Franco Terrazzano (@franco_nomics) August 19, 2022
Macklem’s hypocrisy is matched only by his incompetence.
At this point, Macklem is a joke.
He couldn’t get anything right, enabled the Liberals to destroy the purchasing power of millions of Canadians, the BoC got bonuses anyway despite all their failures, and now he thinks everyone else shouldn’t get higher wages.
In a sane world, Macklem would realize the extent of his total failure and resign in disgrace. Failing that, he must be fired.
Spencer Fernando
Photo – Twitter
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