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Berndette Novak's avatar

Maybe the liberals are sick and tired of the hate and media lies. When you try to do good for the people then you get a rampage of hate speech, lies, sabotage and slander add invented costly false propaganda if I was the liberals I’d hand out a lot of F you’s. Disrespect and lies are toxic to a person. We have a lot of conservatives willing to pay for misinformation. Trudeau is a hard worker and is in Canada more then Harper ever was. He’s had trauma but no one gives him a break. If we lose the liberals we stand to lose everything that made Canada great. I can’t live without a pension. Why is this even a thing? He won’t take our socialism away. And Singh will never get in. So Pierre is it? Really? I’d have to commit suicide bc homelessness as a 4 chronic ill person I’d never survive our winters. Come see what SaskParty has done to me? It’s a mob mentality

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Dan's avatar

I do not think this makes any sense. The only reason for an austerity budget is the noise that the CPC will be making in the next 2 years. Nothing else. A leaner budget in Canada will have zero impact on inflation and interest rate increases or decreases.

Right now inflation is not driven by budget deficits. This is easy to see when you compare Europe with the Canada and the US. Europe had small increases in the deficits during Covid, and are back to small (3% of GDP) or zero deficits (as part of the Euro single currency requirements). Canada and US ran massive deficits during Covid, like 15-20% of GDP. Yet, Europe experienced a much sharper inflation and for a longer duration. Canada and US experienced much lower inflation rates (compared to the rest of the world). Hence, inflation is driven by other factors like a war in Ukraine, massive disruption of supply chains and an unbalanced labour market.

The desire to have a leaner federal budget is purely political. The world economy will settle (barring any additional wars and other unforeseen events) and inflation will get return to more historical values. The Liberals and Freeland will be able to claim “see it worked”, but in reality they had zero influence. Nevertheless, Freeland will make a victory lap, all thanks to Poilievre making the incorrect direct link between deficit and inflation.

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