Liberal government ignoring ‘economic fundamentals’ amid persistently high inflation.
As the Trudeau government ‘responds’ to inflation with policies that make things worse, they are facing mounting criticism.
Derek Holt – Head of Capital Markets Economics & Economics Vice-President at Scotia Bank – has been among those most effectively levelling sharp criticism of the ongoing stoking of inflation by the Liberal federal government.
As noted by BNN Bloomberg, Holt says the Liberal government is ignoring economic fundamentals:
“Holt said any argument that federal spending has not inflamed price pressures does not jibe with economic fundamentals in the wake of the feds announcing another $4.5 billion worth of spending.
“It’s not a coincidence that it is timed to be arriving just in time for holiday shopping season. If you didn’t want people to spend it and you didn’t want people to spend it, give it to people in February — when most of us are already dealing with two feet of snow on the ground after we’ve already blown our wallets on the holiday season,” he said in an interview Friday.
“There’s this narrative that says inflation has nothing to do with stimulus at home — central banks, governments, didn’t cause any of it — it’s just all global supply chains and greedy corporations. That suits their cause, but it’s factually false.””
Among those most enthusiastically peddling the ‘greedy corporations’ narrative is NDP Leader Jagmeet Singh:
“The CEO of Sobeys, Michael Medline made $8.6 million last year — 15% more than the year before.
Did workers at his stores get a 15% raise?
No.
Instead, he took away their hero pay during the pandemic.
Workers deserve better.”
The CEO of Sobeys, Michael Medline made $8.6 million last year — 15% more than the year before.
Did workers at his stores get a 15% raise?
No.
Instead, he took away their hero pay during the pandemic.
Workers deserve better. https://t.co/neumX4Izsy
— Jagmeet Singh (@theJagmeetSingh) September 16, 2022
Singh continues to ignore his own complicity in the erosion of the purchasing power of Canadians, as he is propping up the reckless-spending Trudeau government.
Singh and Trudeau are either both ignorant of how they are driving up inflation, or they simply don’t care. Likely, it’s a mix of both, as statist politicians love how inflation robs individuals of financial independence while deepening reliance on centralized government.
A deeper issue is the ongoing need for Canadians to truly understand our financial and monetary system.
Actual wealth comes from productivity, from making real things and providing real services, and doing so more efficiently over time.
Attempting to evade that reality by flooding an economy with printed money only erodes the value of that money, and doesn’t make any real goods or services magically appear.
Pierre Poilievre’s victory in the CPC leadership race, after a campaign in which he ran on sound money, limited government, and fiscal responsibility, offers a hopeful sign that more Canadians are waking up to economic and monetary reality, and we must ensure that positive trend continues.
Spencer Fernando
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