It is no surprise that government spending is hurting the inflation fight. Many have argued that government spending is out of control and a significant factor in what we face daily with inflation.
Justin Trudeau and the Liberal government are good at blaming others without looking inward to themselves. Since 2015, when Justin Trudeau took control of the reigns, Canada’s debt has increased by approximately $137 billion to $1.38 trillion.
At a recent government hearing, the governor of the Bank of Canada suggested that the government is intent on going in the opposite direction to the Bank of Canada. The Bank of Canada is supposed to fight inflation with interest hikes to slow the economy, while the Liberal government keeps spending with willful abandon.
At the government hearing, the governor tried to blunt his message, suggesting that Canada has the lowest deficit-to-GDC ratio of all countries in the G7. Is that supposed to make us proud; does that help the almost seven million Canadians dealing with food insecurity or the folks losing their homes?”
Does bringing up the others make me feel any better? Misery loves company, but Trudeau, focus on something you can control. That is how you spend our money at home.
The End
At the Facts that Matter, understanding the facts is most important. We can listen to all the excuses, the blaming of others, and the lack of taking responsibility. Still, when it comes down to it, government spending creates a substantial inflationary hit.
And what have we seen most recently? Justin Trudeau announced another subsidy to make us feel good by giving us some of our hard-earned money back. Adding free heat pumps and increasing the carbon tax subsidy: As the governor of the Bank of Canada suggests, government spending policy is opposite to the Bank of Canada's actions to fight inflation. Why couldn’t the government remove the carbon tax?
I know it’s not politically correct, and that is a sad commentary on how our government governs. And let’s see how many new heat pumps will be installed in the next three years under this new program.
Best wishes .....
Vancouver, BC, Canada
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