By Pepper Parr
December 21st, 2022
BURLINGTON, ON
Data and the big picture – does it help us in deciding what to do ?
Does this data reflect the way you see things?
The Angus Reid Group is a Canadian organization that has been doing public opinion polling for decades and are recognized as one of the best in the world.
The following is some of the data they released earlier this week.
Is the budget you have to live within reflected in this data.
Can people afford the higher prices? Some do, some are finding it very hard. Food bank usage reflects the change.
Who has a credit card ? Almost everyone. How do they use them.
Does your bank meet your needs? Is this a good time to invest?
The mortgage problem. For some what lays ahead is bad news
The massive increase in federal government spending has continued well past the pandemic emergency. The number of federal government employees has ballooned from 282K to 319K in less than 2 years. The federal government’s total spend has mushroomed from $800 billion in 2019 to $969 billion in 2021. Federal government spending as a percentage of Gross Domestic Product is 22%, compared to an average of 16.6% in 126 other countries.
When you have a diminished supply chain where goods production has dropped due to the pandemic and the War in the Ukraine, and then you massively increase government spending with effectively no checks and controls, there is a concomitant and significant increase in inflationary pressure. Inflation is simply too much money chasing too few goods. In a government that lacks financial prudence, and where there is no appetite to rein in government spending, the only policy option is to tamper down inflationary pressures by increasing interest rates. If interest rates did not increase investment capital would move to other countries where interest rates are more competitive. Sadly, financial investors do not respect geographic boundaries.
If the PM wanted to really help the situation he could start by exploring substantive structural changes to problems, and searching for creative solutions, instead of constantly writing cheques as a short-term, stop gap measure for every WOKE, disadvantaged pressure group claiming injustice and disadvantage.
So can Mr. Gamble.
It is note worthy that to my knowledge our local MP has not had an open public meeting where citizens are invited to raise and discuss issues of concern in probably three years. Perhaps one will happen for pre budget input? In my opinion MP’s simply showing up at local events for photo ops does not cut it.
From our perspective and that of multiple media opinions the Bank of Canada is taking the wrong route with its devastating interest rate hikes. It’s time pressure was put on the Bank of Canada to hit reverse gear hard. Our MPs need to find a way to bring this about and very soon.
As shown by today’s announced inflation rate of 6.8% a meaningful amount of that figure is itself due to the effects interest rate hikes has on costs like mortgages. But inflation it can be seen is being reigned in. The USA, EU, UK and others have all implemented the higher interest rate policy to fight inflation. So Canada is following conventional wisdom.
It’s all very well condemning the BoC for its interest rate policy to curb inflation, but you put forward no alternative policy. That reminds me of the federal PCs. Rail against every move by the federal government but offer no alternative.
Ms Marsden, what is your suggested alternative action plan to tame inflation?
Mr. and Mrs. Marsden are not economists they can, however, read and understand the majority of respected opinions that differ from yours.