Philip Cross: Liberals, NDP have no answer for inflation — luckily the bank finally does

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Philip Cross: Liberals, NDP have no answer for inflation — luckily the bank finally does
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This is an obvious opportunity for Conservatives

The left dismisses monetary causes of inflation. Recall that during the past federal election, Justin Trudeau said he had no time for the subtle significance of monetary policy: “When I think about the biggest, most important economic policy this government, if re-elected, would move forward, you’ll forgive me if I don’t think about monetary policy. You’ll understand that I think about families.

To combat greedflation, NDP Leader Jagmeet Singh calls for a special levy on corporate profits and more antitrust action. This confuses the causes of inflation with its effects. So do calls for price controls, like the Ontario NDP’s proposal to cap gasoline prices, as if governments can simply legislate lower prices without causing widespread damage.Article content

Other proposals meekly accept inflation and call for more government spending to shield people from higher prices, something provincial governments in Quebec and Ontario have already adopted with $500 checks to individuals. Finance Minister Chrystia Freeland’s promise to spend $8.9 billion to cushion the impact of inflation on Canadians shows she agrees. Such measures don’t dampen inflation; by stoking demand, they only aggravate it.

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