Here Are Three Ways The Liberal Government Is Deliberately Increasing The Cost-Of-Living

An objective look at the facts makes it clear the Liberal Government is pursuing a set of policies deliberately designed to make life more expensive.

More and more videos are emerging of Canadians breaking down as they try to deal with the rapid erosion of their purchasing power amid a growing cost-of-living crisis:

What people are feeling is that even as they work harder and harder, their money doesn’t go as far.

And this feeling is backed up by the numbers.

Canada is already in a per capita GDP recession, meaning Canadians are getting poorer in real terms. The only reason our economy still appears to be ‘growing’ is because the government is rapidly ramping up immigration. More people in a country will certainly generate more raw economic activity, but that doesn’t mean anyone is better off.

After all, a country with 200 million people and a per capita GDP of $10,000 will have a bigger overall economy than a country of 20 million people and a per capita GDP of $75,000. But which country would you rather live in?

The Liberals have shown themselves unable to generate any actual increases in our standard-of-living, and are in fact making things worse.

While some would see this as simply being due to incompetence, there is an ideological component as well that shows it is a deliberate policy choice to make life more expensive for Canadians.

If you look at some of the politicians Trudeau has chosen to empower at the highest levels – particularly Steven Guibeault – you can see that the Prime Minister is an ardent advocate of state intervention in the economy and believes Canadians must make sacrifices in order to ‘save the planet.’

Trudeau has surrounded himself with those who no longer question that approach, with more reasonable economic voices – like Bill Morneau – having been pushed aside.

And now, the Liberals are doing five specific things that are driving up the standard of living, with nobody within the government to hold them in check:

The Carbon Tax

The carbon tax is a policy that exists to change how people behave. It does so by making things more expensive in order to reduce consumption. Trudeau and Guibeault can try to talk their way around this all they want, but that doesn’t change it.

The latest inflation report makes this obvious. Nova Scotia – where the carbon tax was just imposed – had the second highest inflation in the country in July. Their inflation rate rose from 1.9% to 3.4%.

As noted by Statistics Canada, “Nova Scotians saw prices at the pump increase by 14.0% in July compared with June. The introduction of the federal carbon levy in the province and higher wholesale prices contributed to higher gasoline prices.”

The carbon tax raises prices, and the rebates – which don’t make up the cost for most Canadians – are being funded through deficit spending, further contributing to inflation. It’s an inflationary policy all around.

Weakening the oil & gas sector

The world is desperate for oil & gas.

Canadian consumers are desperate for cheap energy.

Canada has massive energy reserves.

Thus, energy should be incredibly cheap and abundant in this country, and since cheap energy is the lifeblood of a prosperous civilization, our cost-of-living should be very low.

Of course, that’s not the case.

Justin Trudeau famously said there wasn’t a “business case” for Canada to expand our LNG exports to nations like Japan and Germany who were trying to escape dependence on Russian energy. Other countries like the United States and Qatar obviously disagreed with that assessment, inking multi-billion contracts to expand exports.

The Liberal government has also overseen the cancellation of over $150 billion worth of energy sector projects in this country, and have brought in legislation – like the ‘no pipelines bill’ that serves a massive disincentive to energy sector investment.

This – along with the carbon tax – has pushed up the cost of energy and thus pushed up the cost-of-living.

As a result, Canada’s per capita GDP is now about equal to that of Germany, which is absurd when you consider how desperate Germany is for energy and how much energy Canada has.

Starting on July 1st of this year (2023), the Liberals have imposed a second carbon tax which pushes up fuel prices. With the government actively seeking to make energy more expensive, is it any wonder that life is less affordable?

Surging population growth

When we talk about the issues caused by huge immigration increases, it’s important not to blame individual immigrants or demonize immigrants as a group. After all, we can’t blame someone for wanting to try and build a better life in a new country. A huge portion of Canadians are either immigrants or recent descendants of immigrants.

With that in mind, the federal government certainly should face political accountability for the impacts of their deliberate decision to substantially increase the influx of immigrants into Canada with little regard for how this would impact the housing market, social services, and the broader economy.

The challenges being caused as a result of this policy are so undeniable that a growing number of institutions are willing to break the ‘taboo’ around discussing Canada’s immigration numbers.

Here’s part of what economist Derek Holt of Scotiabank noted in response to the rise in inflation:

“There was significant breadth to the jump in services inflation last month. Shelter was up 0.7% m/m SA nonannualized with gains led by rent, insurance premiums and electricity (charts 5,6 ,7). Alas, no one will win a Nobel Prize in Economics for observing that when you add a massive surge of immigration into a market with no supply, rents and house prices will push higher. Welcome to Duhonomics! The argument that immigration could invoke balanced effects on demand and supply side pressures on inflation that cancel each other out was never sensible and we’re getting the kind of persistent housing inflation I’ve warned about since last year when immigration numbers were skyrocketing.”

Deliberate choices

Imposing a carbon tax is a choice. Seeking to weaken and ultimately end the oil & gas sector is a choice. Raising immigration levels is a choice.

And all those choices are leading to a higher cost of living for Canadians. The Liberals know this, and they do it anyway.

Spencer Fernando


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