GUNTER: Trudeau Liberals, BoC's Macklem seem economically illiterate

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It’s not that the Liberals’ record\u002Dhigh immigration is causing inflation, housing unaffordability and unemployment all by itself.

On Thursday, Macklem said Canada was not in a recession and unlikely to enter one. He admitted that growth has been slow – under 1% for the year – and that growth will likely remain slow through next year. But he insisted that is not a recession.That may be correct, technically, but with groceries, housing, fuel and home heating prices going through most families’ roofs, it feels like a recession to a lot of ordinary people.

Besides, I’m tired of Macklem’s predictions. In 2020, he famously said low interest rates would be with us for a long, long time. Then when the Trudeau government’s massive overspending during the pandemic sparked inflation, Macklem reassured Canadians higher prices would be short-lived – “transitory.”Article contentI always hesitate to blame high levels of immigration for fear of seeming nativist. I am not anti-immigration and immigrants aren’t coming to Canada to take “our” jobs.

But when you have a country with painfully slow economic growth and high inflation, welcoming up to a million new immigrants a year is nuts – for the immigrants, as well as for existing residents.But we would have needed to create 50,000 or more new jobs for employment rates to keep pace with the 100,000 newcomers we admitted.Article contentSimilarly, when you have too many residents and too few houses, that drives prices up.

Given that the OECD projects Canada will have the slowest growth rate of the 38 developed countries in the world – for decades – it’s foolish to open the flood gates to new Canadians.It’s the same with Trudeau’s gasoline taxes – not one, but two carbon taxes. Yes, the price of oil has risen a bit. But the biggest driver of gas-price increases has been federal taxes. So Trudeau raises gas taxes which drives up the cost of food and transportation, which causes the Bank of Canada to raise interest rates to control inflation, which drives up the price of everything even more, which stagnates the economy, which drives up government spending on relief for people and businesses, which is what started the inflation spiral in the first place.

 

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