Liberal Finance Minister, Chrystia Freeland, issued a dire warning to Canadians on Wednesday — the coming months won’t be pretty with rising interest rates and unemployment on the horizon.
The Bank of Canada’s recent rate hikes to tame sky-high inflation will increase borrowing costs for businesses and consumers alike, which will send shockwaves throughout the economy, Freeland said.
“Our economy will slow. There will be people whose mortgage rates will rise. Businesses will no longer be booming. Our unemployment rate will no longer be at its record low. That’s going to be the case in Canada. That will be the case in the U.S. and that will be the case in economies big and small around the world,” Freeland said.
“There are still some difficult days ahead for Canada’s economy. To say otherwise would be misleading.”
Of course, the reason Canada is in such a dire situation is because of record levels of spending by the Trudeau Liberals throughout the COVID-19 pandemic (amounting to over $370 billion in 2021-2022). Compound that with continuous government deficits and simple money printing by the Bank of Canada, and you have our current disastrous situation of uncontrollable inflation and record interest rates.
However, Freeland did suggest that social programs like employment insurance (EI) will be available to help people who lose their jobs in the coming economic disruption – a statement that will be reassuring to very few across the nation.
At the end of the day, it is no surprise that reckless spending from the Trudeau government has led us to this point, and as always, the Liberals will continue to deny all responsibility and drive the economy into (what is predicted to be) a severely crippling recession in 2023.
(Photo credit: CP/Sean Kilpatrick)