Before taking office as Prime Minister in 2015, Justin Trudeau said, " The budget will balance itself, "he made a terribly wrong prediction.
It wasn't — in the long run.
In the last election, Trudeau told reporters: "... If I don't think about monetary policy, you will forgive me. You will understand what I think about my family."
Can he multitask? Can't he think of family and economy? Monetary policy may hurt his head, but it is the cornerstone that tickles everything else in the country. The Canadian family will be hurt and will suffer even more if he does not pay attention and manage debt and deficits. His solution to all problems is to print money to throw it.
We understand that the government had to make some big spending decisions during the pandemic.
It's behind us now. People are back at work and we need to deal with the financial downturn. Inflation is out of control and it's time to cut spending. The federal budget is demanding a deficit of $ 52.8 billion this year, and most state governments are seeing an unprecedented deficit.
Just as Canadians have to renegotiate mortgages at soaring interest rates, so does the government. According to the federal budget, paying interest on federal debt alone will cost Canadian taxpayers from 2022-23 to 2026-27 about $ 180 billion. It's money that can be spent on health care and education.
According to a recent Fraser Institute survey on the accumulated debt and economic performance of industrialized countries during COVID-19, Canada has the second highest total debt (economic) of 33 peer countries. From 2019 to 2021, it was economically sluggish compared to most of these countries.
According to a report by economists Tegan Hill and Miragros Palacios, Canada has the second highest ratio of total debt to GDP among the 33 countries covered by the International Monetary Fund from 2019 to 2021. I am. Only in Japan. Canada's economy was expected to outperform other similar countries. It wasn't. Canada's real GDP growth was the 11th lowest (5.2%) in 2020 and the 12th lowest in 2021. Canada has the third highest unemployment rate of the 33 countries.
If monetary policy bores Trudeau, he should probably go away and rule someone who doesn't lead us all to bankruptcy.
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