QUESTION PERIOD — Finance
State of the Economy
June 7, 2023
My question is for the Leader of the Government in the Senate.
This morning, the Bank of Canada announced that it was increasing its policy interest rate by 25 basis points to 4.75%. That is 19 times higher than it was a year ago. While the Trudeau government is putting its foot on the gas by announcing $60 billion in additional spending, the Governor of the Bank of Canada is putting his foot on the brakes by increasing rates. Prices continue to soar, making life more and more difficult for Canadians.
Leader, this week Equifax Canada reported that in the first quarter of 2023, 175,000 Canadian consumers missed payments on at least one non-mortgage debt product, representing an 18.8% increase over last year, and for mortgage debt, missed payments are up 15.7% over last year. Of course, the phony grocery rebate isn’t going to change any of that for Canadians.
Senator Gold, when will you admit that this government’s economic strategy is a complete failure? How much longer will Canadians have to put up with these higher interest rates and higher consumer prices?
Thank you for the question.
The government’s handling of Canada’s economy has not only helped Canadians get through a very difficult period, but has also ensured that we are well positioned for the present and for the future. This doesn’t mean that anyone is denying the challenges and problems facing Canadians as a result of global inflation and the supply chain issues I have described on a number of occasions.
Still, facts are facts. Canada leads the G7 in terms of the debt‑to-GDP ratio. Furthermore, the fact that the Bank of Canada has independently decided to raise the policy interest rate is a testament to the strength and health of our economy. There are always two sides to a coin when it comes to fighting inflation.
To answer your question, no, the strategy is not a failure. On the contrary, it has been a success.
Leader, let me show you the other side of the coin: young people who want to buy property.
After eight years of the Trudeau government, the average down payment for a house has more than doubled. In fact, the gross salary required to buy a home on the island of Montreal is $251,000 a year, which means that young people and immigrants can’t afford to buy property.
Will you admit that the Trudeau government has failed and is changing the property market so that these young people will forever be tenants?
Once again, it’s very easy to blame the federal government for all the problems in every city, in every big city suburb and across the country. This is a very real and serious issue for the generation you’ve just described. The government has stepped up to support young people who want to buy property for their families by investing in our economy to create jobs, good jobs, for the generation entering the workforce.
The federal government is doing its part with the provinces, territories and municipalities, as well as with entrepreneurs, to try to increase the supply of affordable homes for young families.
