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Yes, The Liberals Are Directly Responsible For The Cost-Of-Living Crisis

 JUNE 26, 2024

The government and its defenders have sought to portray Canada as a nation beset by external forces that have caused tough times. But that is not correct.

You may recall how Finance Minister Chrystia Freeland took a premature victory lap over a decline in the rate of inflation in July of 2023, only for the number to spike the following month.

Freeland was widely ridiculed, especially given how the Liberals seemed unaware of the cumulative effect of inflation, as even ‘lower’ inflation following a period of prolonged high inflation leads to a rapid erosion in the purchasing power of the populace.

Freeland’s victory lap was simply more evidence that she is an ineffective Finance Minister.

Then, as now, Freeland and the Liberals try to play a double game.

Any good piece of economic news is portrayed as being evidence of the ‘brilliance’ of the government.

Any piece of bad economic news is portrayed as being the result of outside forces Canada can’t do anything about.

You’ll see this a lot from the few remaining defenders of the Liberal government. When Canadians bring up the myriad ways in which our country is declining, they’ll counter by saying that all of our peer nations are going through the same thing, they’ll blame external factors, and then they’ll claim that the Liberals are helping Canada do better than we otherwise would.

There’s only one problem.

None of that is true.

In reality, Canada’s cost of living crisis is a direct result of Liberal policies. We are in this position because of the choices the Liberals made.

Thus, it is 100% correct to hold the Liberals responsible for the ongoing decline in our standard of living.

And the past few days have provided further evidence of this.

For example, rent prices are surging amid ongoing high levels of immigration:

Image

Ironically, the large increase in Alberta is due to it being one of the last bastions of relative economic freedom in the country.

Another chart compiled by @Tablesalt13 shows how much of a historic aberration this increase in rent prices is:

https://twitter.com/Tablesalt13/status/1805722368628645892

Canada’s productivity is also being crushed through a mix of unsustainable immigration and policies like the carbon tax that drives up the cost of energy:

“The lack of productivity in Canada today is worse than the 1980s recession, 1990s recession, and the Global Financial Crisis.

If you’re not concerned yet, it’s time to wake up.”

Corporate bankruptcies are rising:

Oh, and it turns out inflation is going up again:

Per Statistics Canada,

“The Consumer Price Index (CPI) rose 2.9% on a year-over-year basis in May, up from a 2.7% gain in April.

Acceleration in the headline CPI was largely due to higher prices for services, which rose 4.6% in May following a 4.2% increase in April. Faster price growth for services was led by cellular services, travel tours, rent and air transportation. Prices for goods (+1.0%) grew at the same rate as in April.”

Grocery prices are also up, rising 1.5% in May compared to a 1.4% increase in April. Again, the cumulative effect is important to note, as grocery prices are up 22.5 when compared to May of 2020.

Canada is an outlier

When taken together, we see that Canada is an outlier.

Canada’s real estate prices have exploded beyond our peer nations, with the trend getting particularly worse under the Liberals:

Canada's housing bubble

As this chart by Scotiabank Economics makes clear, Canada stands out when it comes to our mass immigration experiment:

Chart 1: G7 Population Growth
Source: https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.global-week-ahead.july-28–2023.html

And our per capita GDP performance is disastrous:

Image

If ‘external factors’ were causing this to happen, why is Canada doing worse than our peers?

That is the question the Liberals don’t want Canadians to ask because the answer is devastating.

Canada isn’t being harmed by external factors, we’re being harmed by the choices made by the Liberal government.

The Liberals chose to ramp up immigration.

The Liberals chose to drive up the cost of energy.

The Liberals chose to raise our taxes.

The Liberals chose to impose regulations that led to the cancellation of over $150 billion in energy sector projects.

The Liberals chose to utilize class warfare rhetoric that will push productive people away.

These choices have consequences.

The Canadian People are paying the consequences

And – if Toronto-St.Paul’s is an indication, the Liberals will pay for it at the ballot box.

Spencer Fernando