(Ottawa) Canada will be able to weather the new storm that is rocking the global economy and which is fueled by inflation by banking on immigration, the construction of new housing, a historically low unemployment rate, greater budgetary discipline and financial assistance to the less fortunate, argues Finance Minister Chrystia Freeland.
Posted at 1:26 p.m.
Updated at 2:25 p.m.
And the Bank of Canada will play the crucial role of bringing inflation under control by using the tools at its disposal and maintaining full independence, she argued.
In a speech to the Empire Club in Toronto on Thursday, Minister Freeland tried to reassure Canadians who are increasingly worried about the rising cost of living while the COVID-19 pandemic is not yet over. completely finished.
Inflation hit 6.8% in Canada in April, the highest since 1991. In the United States, it rose to 8.6%, leading the U.S. Fed to raise the interest rate by three-quarters of percentage point on Wednesday. The Bank of Canada could follow suit in July, heightening fears of a recession and causing stock markets to fall sharply.
From the outset, M.me Freeland said Canada is in a better position to weather another period of economic turmoil, compounded by Russia’s war in Ukraine and strict containment measures in China.
“No country alone can solve these global problems. But what we can do is help Canadians weather this new storm, just as we have done for the past two years,” said the Minister.
She pointed out that the Trudeau government has adopted several measures totaling $8.9 billion that were announced in the last two budgets. These measures, which are being phased in to provide respite to Canadians, include:
- Enhancement of the Canada Workers Benefit, which provides $1.7 billion in new support for workers. Concretely, this will put up to $2,400 in the pockets of low-income families starting this year.
- A 10% increase in Old Age Security for people over 75. This will mean paying up to $815 more to more than three million seniors this year.
- A $500 payment that will be paid this year to nearly one million Canadian tenants who are struggling to pay their rent.
- A reduction in child care costs of 50% on average by the end of this year thanks to the agreements on child care services that have been concluded with all the provinces.
- And dental care that will be provided for Canadians with incomes below $90,000, starting with thousands of children under the age of 12.
Minister Freeland also recalled that other support programs such as the Canada child benefit, the GST credit, the Canada Pension Plan, Old Age Security and the Guaranteed Income Supplement will be indexed to the inflation. As for the federal minimum wage, which has been raised to $15 an hour, it will also be indexed to inflation.
“We have gone through two years of remarkable turbulence. Our challenge now is to get things done. Everything is not guaranteed to go smoothly. But, fortunately for us, no country in the world is better placed than Canada to accomplish this task,” said Ms.me Freeland.
According to the Minister, immigration remains an essential tool to support the growth of the Canadian economy. She recalled that many companies are having difficulty filling the hundreds of thousands of vacant positions that there are in the country due to a lack of workers.
The Conservative Party was unimpressed with Minister Freeland’s speech. “The Liberals’ so-called solution to the inflationary crisis that is devastating Canadians will only make matters worse. […] Canadians are grappling with a cost of living crisis caused by the Trudeau Liberals’ flawed tax-and-spend approach,” MP Gerard Deltell said in a statement.
NDP Leader Jagmeet Singh was equally critical. “Canadians fear not being able to feed their children or keep their homes. And today, we clearly see that they are neglected by this government”.