Conservatives demand Government renew Bank of Canada’s low inflation target, set to lapse December 31, 2021
Ottawa, ON – Pierre Poilievre, Conservative Shadow Minister for Finance, today called on the Liberal government and the Bank of Canada to renew the inflation-control target, which is set to lapse in just over a month. The call comes after record deficit spending has sent inflation soaring to its fastest rate in 18 years.
“It’s no wonder prices are ballooning: Canada is spending more and making less. More dollars chasing fewer goods bids up prices of everyday goods,” said Poilievre. “With the biggest deficit to GDP in the G20, Justin Trudeau has sent an extra $400 billion chasing fewer goods, pushing the cost of living up two-and-a-half times faster than wages in the last year.” The government and the Bank of Canada created the inflation-control target in 1991 after government money printing and overspending had tormented Canadians with decades of high inflation and unemployment.
“Despite the fact that the inflation-control target is set to lapse in just over a month, neither the Prime Minister or the Finance Minister have made it clear whether it will be renewed at its current rate,” said Poilievre. On October 22nd, 2021 Conservative Leader Erin O’Toole wrote to the Prime Minister to request that the inflation-control target be renewed at its current rate. No response was received from the Prime Minister.“With the costs of everyday goods like gas, groceries, and housing continuing to reach record levels, Justin Trudeau seems to want to let the Bank of Canada inflation target lapse altogether,” said Poilievre. “If this happens, Canadians will see prices climb to levels not seen since
Pierre Elliot Trudeau was Prime Minister, and inflation rates stood at 12 per cent.”
This inflation tax is great news for the superrich, whose stocks, bonds, gold and property have inflated, but terrible news for the workers and seniors whose dollars buy less and less.
Enough:Instead of creating cash, create what cash buys: more food, energy, and housing. Here is how.
Make more:
• Approve projects that produce more affordable energy.
• Cut taxes and red tape so farmers, workers, and businesses supply more food and goods.
• Cancel payroll tax hikes to lower the cost of hiring and let workers keep more of their paychecks. Cost Less:
• Stop printing money for government spending.
• Review Justin Trudeau’s $100 billion slush fund and return spending to normal pre-COVID levels.
• Shut down the multi-billion-dollar infrastructure bank that has cost a fortune and failed to finish a single project.
• Simply put: make more, cost less, with paychecks, not debt.