It's Just An Economy

It's not like people need to eat or anything:

This week, Deputy Prime Minister Chrystia Freeland is reportedly set to unveil a $7 billion package intended to help address Canada’s historically high rates of inflation.

There’s just one problem: When it comes to curbing inflation, dumping yet another $7 billion into the economy is probably among the least advisable medicines.

On Thursday, according to the Toronto Star Freeland is set to deliver a “significant” speech on Bay Street outlining an inflation strategy that will include pouring cash into entitlements such as Old Age Security and the Canada Child Benefit in order to help Canadians grapple with rising costs of living.

Canadian inflation currently stands at 6.8 per cent. This means that the loonie is losing nearly seven cents of purchasing power every 12 months. For a Canadian earning a median income of $55,700 per year, that translates to an annual inflationary loss of $3,787.60.

Inflation, at its core, is a problem of too much money chasing too few goods. If the Canadian economy has a lot of cash on hand and not a lot of places to put it, it’s going to result in consumers bidding up the price of whatever is left.

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Last April, Justin Trudeau’s carbon tax increased and now his second carbon tax – the Clean Fuel Standard – is set to increase as well – causing the cost of goods to increase even more.

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Federal subsidies for charging stations have cost taxpayers thousands for every driver of an electric car, new figures show. The subsidy per driver in some provinces was $4,000 or more: “I have never ridden in or driven a zero emission vehicle.”

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A $20 million federal Covid Alert app was discontinued due to lack of interest, says a federal report. Only a fraction of Canadians used the app despite appeals from the Prime Minister to download it as a civic duty: “Several challenges persisted which prevented the app from reaching its full potential.”

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Apparently, Canadians aren't looking for work:

The Department of Immigration is reviewing whether to permit a third of a million foreign students to work full time in Canada, says a senior manager. MPs recommended the change though the jobless rate for school-age Canadians is ten percent: “There are people who really need to be hiring those students.”