“I’m confident that our plan is the right one. But I do not underestimate the economic difficulties and, frankly, the uncertainty of the months to come,” says Finance Minister Chrystia Freeland in Toronto speech on government’s proposals to ease the impact of inflation.
Canadian inflation currently stands at 6.8 per cent. This means that the loonie is losing nearly seven cents of purchasing power every 12 months. For a Canadian earning a median income of $55,700 per year, that translates to an annual inflationary loss of $3,787.60.
We are taking real and tangible steps to help get inflation under control and make life more affordable for Canadians.
And, in five parts, this is how we are going to do it. ⤵️ pic.twitter.com/zOvi72dCFg
— Chrystia Freeland (@cafreeland) June 16, 2022
On the eve of the COVID-19 pandemic, Canadian federal debt stood at $686 billion. That’s now ballooned to more than $1.1 trillion. Even after a sharp scale back in government spending for the 2022 budget, Canada is still spending well above pre-pandemic levels; this year’s $52.8 billion deficit represents $1,400 per Canadian in new debt
Government spending has been so massive, in fact, that the average Canadian was ultimately sitting on more cash than if a pandemic had never happened. Or, as the Bank of Canada put it, “extraordinary fiscal support more than offset (pandemic) income losses, so on balance, household income increased.”
Finance Minister Chrystia Freeland speech on Government’s proposals to ease inflation. “Fiscal restraint” Freeland says, as she tables $7 billion in new measures. pic.twitter.com/cRJMNZTesE
— Canadian Riley (@TiaRileyCanada) June 17, 2022
“The five points I’ve spoken about today, respect for the central role of the Bank of Canada, investing in people, fiscal restraint, good jobs, and a new affordability plan will help sustain the robust recovery we’ve made from the COVID recession.”