QUESTION PERIOD — Finance
Canada's Inflation Rate
December 15, 2022
My question is for the government leader. Last week, I asked you a question about “Justinflation.” In your answer, you quoted Scotiabank, which says, according to you, that your government did not create “Justinflation.”
Allow me to quote the report in question, which is by economists Jean-François Perreault and René Lalonde. They state that “. . . it is also abundantly clear that pandemic support measures could have been rolled back more rapidly at the global level.” They go on to say, “. . . the inflation outcome suggests that consolidation should have occurred at a more rapid pace.”
According to these economists, it is clear that the Trudeau government did not end COVID measures quickly enough and that the inflationary spiral we’re in is a direct result of their delayed response.
Senator Gold, when will you finally admit that “Justinflation” was created by the Trudeau government?
Thank you for the question. The Government of Canada is proud of the financial support it has provided to Canadians during the pandemic. The report you quoted clearly demonstrates that inflation was caused by multiple factors, the vast majority of which had nothing to do with the decision to provide assistance to individuals and businesses during this period, a decision that was supported by the opposition parties and the Senate. The Government of Canada remains proud and confident that it made the right decision in helping Canadians during this difficult time.
Senator Gold, clearly, you’re saying that you are proud of how your government has managed public finances, but the fact is that it’s been catastrophic, based on the results. We are facing record-high inflation.
The Scotiabank report that you love so much is entitled Policy Missteps Taking Their Toll: Scotiabank’s Forecast Tables. Senator Gold, who do you think was in charge when those very serious policy missteps were taken?
Thank you for the question. Every time you ask this question, I remind you that the Canadian economy is doing well, very well even, compared to other G7 developed countries. Furthermore, our standing in the financial sector, according to the organizations that evaluate our creditworthiness is very solid. I will repeat that the government did what any government must do when faced with an almost existential crisis for the economy and the lives of Canadians during this pandemic. The government will continue to do what is required to help Canadians.
