One of the concerns on many Canadians’ minds as the federal government released its 2023 budget was how much the items in the Liberals’ plan would help or hurt the country as it continues to deal with high rates of inflation.
The budget came with items that could help Canadians, such as its “grocery rebate” and the targeting of ‘junk fees”— like concert ticket costs or credit card fees— as well as expanded dental care. Economists say the plan could be considered a “small” budget, with low-cost measures that could be considered “consumer protection.”
Anne Gaviola breaks down the budget and why some financial experts say this budget could help in lowering Canada’s inflation rate.
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The Federal Budget of Canada for 2023 has been the talk of the town lately, and for a good reason. Given the current state of the global economy, inflation is a major concern for governments worldwide, including Canada. The government’s plan for the budget for 2023 is to increase spending in various sectors of the economy, such as healthcare, housing, and climate action. However, the question remains: will this plan help or hurt Canada’s inflation rate?
The Liberals’ plan for the Federal Budget of 2023 is a multi-year plan to invest in key sectors of the economy, focusing on job creation and economic growth. The government has announced that it will spend $100 billion over the next three years, starting in 2022, to boost the economy and create jobs. The Finance Minister, Chrystia Freeland, has stated that the government’s focus is on maintaining the momentum of the recovery, which has been supported by the unprecedented fiscal stimulus provided during the pandemic.
However, the increase in spending raises a red flag for inflation. With higher spending, there is a potential for increased demand in the economy, leading to higher prices. The increase in demand will put pressure on the supply of goods and services, which can cause an increase in prices. This is the very definition of inflation and is a significant concern for Canadians.
The government has acknowledged the risk of inflation in the Federal Budget of 2023. The budget has earmarked $1.4 billion for the Bank of Canada to monitor inflation and adjust monetary policy accordingly. The Bank of Canada has a critical role in maintaining price stability in Canada, and the government’s plan is to rely on it to control inflation.
The Bank of Canada has already taken action to control inflation by raising interest rates, which increases the cost of borrowing and, in turn, reduces demand in the economy. This action helps to maintain price stability by controlling inflation. However, raising interest rates may also lead to a slowdown in the economy and a decrease in job creation.
Overall, it is difficult to predict whether the Liberal plan for the Federal Budget of 2023 will help or hurt Canada’s inflation rate. The government’s focus on job creation and economic growth is commendable, but the increase in spending could put pressure on the economy and lead to increased prices. The government’s allocation of funds to the Bank of Canada to maintain price stability is a wise decision, but it remains to be seen how effective it will be.
In conclusion, the Liberals’ plan for the Federal Budget of 2023 is ambitious, and the impact it will have on Canada’s inflation rate is uncertain. The government has acknowledged the risk of inflation and is taking steps to control it, but it remains to be seen whether these measures will be effective. Only time will tell whether the government’s plan will be successful in achieving its goals without hurting Canada’s inflation rate.
The groceries rebate will help and double the gst credit, but not for long!! This rebate should continued until inflation goes down. Because food prices are ridiculously high.
In Jan 2020 , Canada's M2 money supply was $1.8 trillion , and today its nearly $2.4 trillion .
The Liberals are still printing money , while the Biden administration stopped a year ago .
Even though the price of oil * and natural gas increased , the Cdn dollar dropped from $0.796 to $0.734 US
since many resources are priced in US dollars , the cost of buying these resources increased .
The money printing was the major cause of inflation .
Inflation was not transitory , it wasn't supply chains , it wasn't Putin , it wasn't the tooth fairy .
The CBC mislead you .
The cause of inflation was BoC printing money to pay for Trudeau's out of control spending .
* Canada's Petro dollar should increase if the price of oil increases .
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Yes how many of these Green Energy projects are being connected to Hydro Quebec ?
How many billions are allocated for this ?
Interesting how the share price of Canadian "Green Energy " corporations jumped up after the budget .
I'd name them , it will probably be deleted .
There is a whole new section of military spending Billions for Ukraine , NATO and NORAD .
Freeland is using Canadians to help finance her goal of removing Putin .
Who could be stupid enough to push for a regime change on a KGB Agent who has his thumb on nuclear weapons ?
Answer : Chrystia Freeland
Trudeau , Morneau , Freeland , Sabia and Tiff MacKelm are responsible for increasing the federal debt to $1.2 TRILLION.
The present cost of servicing this debt is $36 trillion . These people are destroying the future of Canadians .
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“Scratch a liberal and find a closet aristocrat … Liberal governments always develop into aristocracies”. From Frank Herbert’s Dune series
Lowers price groceries. Is okay bether nothing
Is God lower credits cards, dental plan care
Canada is going to become Zimbabwe/Argentina 2.0. I have been living here since 2007 when I came from the Philippines and I dont see a future for me here and a lot of my colleagues aged 20-30 yrs old plan on going to the US for a better life, cheaper goods/services and lower taxes.
Here's the strategy – get people so dependent on these `free' services, that they have no choice BUT to vote for the Liberals. Any party that tries to balance the budget and take these freebies away, won't get their vote. Soon the Liberals will make people SO dependent, they cannot afford to do it themselves… possibly having to sell off assets. This is the WEF strategy – `You will own nothing, and you will like it!". And JT is their poster-boy!
Imagine that. More costs for middle and upper middle class Canadians who get up and go to work damn near every day, picking up overtime so that they can put some disposable income back into the economy. Nah, no relief for them, they're not deserving enough, lets take some of their money and hand it out to ambitionless, unmotivated hacks who don't have a pot to piss in and never will. Maybe they'll vote us back in. That's the Liberal MO. Punish hard work, and reward laziness.
Printing money isnt free! Inflation is nothing more, then a hidden tax!
All those who were pro-lockdown and promoting fearmongering a year ago are to blame for this! If you want to see where the problem stems – take a look in the mirror!!!
Really
Il est aussi stupide pour le gouvernement fédéral Justin Trudeau de vouloir éliminer la dette fédérale, que pour les écologistes vouloir éliminer les contenants en plastique qui flottent sur les océans ! Hey c'est impossible !!!
lookit all the welfare canadians with their hands out! Like the swaddled dependants they actually are. baby nahsees.
There's not much good in the budget. Get a couple of chickens and grow a lot of food this summer.
You don’t fix inflation with free dental care so you will have teeth but you won’t need them because you won’t be able to afford food
Throwing pennys st us is insult really is tv news station part of c11
Stop voting for administrations that promise you stuff. First, most likely they are lying. Second, deficit spendings will cause inflation, corruption, and will sink our country deeper into debt. Third, the government will gain more power through this, which is not a good thing for the citizens.
And the positive budget- and inflation – in less both off expensive infrasture- Police and firemen – infrasture – where how heading.Less billions and billons- sterengeth our economy.
You know what's not an educated guess and actually won't cause inflation?… Not printing money to increase spending