The arrival of the Liberal Government headed by Prime Minister Justin Trudeau has not panned out well for the Canadian economy. The nation’s monetary policy is being designed by Trudeau appointees, who are acting bizarrely and making statements that might spell the end for Justin Trudeau.
The current liberal government is dependent upon the Bank of Canada to extend the necessary credit to fuel undirected developments and the Governor of the Bank of Canada – Tiff Macklem is widely believed to be a Trudeau sympathizer.
Macklem’s policies have led to a tremendous spike in inflation in the country. Canada’s annual inflation rate hit 8.1% in June, up from 7.7% in May. However, it looks like he believes in selfishly leaving the working class to fend off themselves while he and his master go around doing whatever they want to.
No well-wisher of Canadian workers amid high inflation
Bank of Canada Governor Tiff Macklem suggested last month that business leaders should refrain from building high inflation into wage negotiations even as soaring consumer prices erode earnings.
Simply put, Macklem is recommending business owners hold off on raising employee pay to keep up with rising inflation.
His comments have sparked pushback from union leaders, who are trying to ensure the wages of their members keep up with the rising prices and are growing increasingly assertive in their bargaining activity.
The current administration has failed to manage Canadian debt and is responsible for soaring inflation in the country and now the Governor of the Bank of Canada is advising against salary hikes. A perfect example of hypocrisy.
The gross mismanagement of the Covid crisis has sent shock waves to all sectors of the economy. Public debt in Canada is hitting record levels and is now at the third highest amount since World War II.
Associate Director of Fiscal Studies with the Fraser Institute, Jake Fuss said, “While some emergency spending for COVID was necessary, the significant increase in federal debt in recent years means more tax dollars will go towards paying interest and future generations are on the hook for today’s spending.”
Trudeau’s ATM Machine
Prime Minister Trudeau’s government has increased per-person debt by 35.3 per cent since 2015. The Liberal government’s policies are neglecting the principles of sustainable development and are pumping an unreasonable amount of money into the economy by raising debt whose burden will have to be incurred by successive governments and future generations. Recently, an economic expert Maxime Bernier even went on commenting that the Bank of Canada is now Justin Trudeau’s personal ATM. Now here’s another red flag for the Canadian economy.
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Canada recorded a Government Debt to GDP ratio of 117.80 per cent in 2020. Now, this figure is alarming for Canada, or simply put, a ticking time bomb for its economy. A debt-to-GDP ratio of 60% is quite often noted as a prudential limit for developed countries. In Canada’s case, the figure is exactly double the desired threshold.
If that was not enough, consumer spending in Canada is also on a decline. An advance estimate suggests retail sales dropped 2% in July, Statistics Canada reported Friday in Ottawa.
The Central Bank states that it is worried about the intensified inflation that would occur as a result of the salary hike as production costs will soar, but Labor leaders and economists argue that the central bank is overemphasizing the risk of a wage-price spiral.
In regards to Mr Macklem’s comment on wage restraint, CFIB president and chief executive Dan Kelly said that suggesting businesses refrain from raising wages was not practical advice in today’s ultra-tight job market, where employers are competing for scarce workers.
Canadian Individuals are struggling amid growing chaos in the country. The finances are messed up, inflation is dangerously high and debt is way above normal levels.
An increase in salaries would have been beneficial but Trudeau and associates probably do not understand the pains of the working class.
https://www.youtube.com/watch?v=e7iVpsoD9Co
