A panel of former NAFTA council members discuss why the U.S. Inflation Reduction Act presents a huge challenge for Canada’s economic growth.
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The U.S. Inflation Reduction Act is a piece of legislation that has caused much concern in Canada. The proposed act, which is currently being discussed in the U.S. Senate, aims to reduce inflation in the United States by implementing policies that would raise interest rates and limit government spending.
While the act may be well-intentioned, it could have significant negative impacts on Canada’s economy. Here’s why:
1. Canadian exports could become less competitive. If the U.S. raises interest rates, the value of the U.S. dollar could also rise. This would make Canadian goods more expensive for U.S. consumers, potentially reducing demand for Canadian exports.
2. Canadian businesses could have difficulty securing loans. If the U.S. limits government spending, it could have a ripple effect on lending markets. Canadian businesses that rely on U.S. lenders or investors could find it harder to secure the financing they need to operate and grow.
3. Canadian interest rates could rise. In order to maintain a competitive exchange rate with the U.S., the Bank of Canada might feel compelled to raise interest rates as well. This could make it more expensive for Canadians to borrow money, leading to reduced spending and economic growth.
4. The Canadian dollar could depreciate. As the U.S. dollar becomes stronger, the Canadian dollar could weaken. This could make imported goods more expensive for Canadians, leading to higher inflation and reduced consumer spending.
Overall, the U.S. Inflation Reduction Act could have serious consequences for Canada’s economy. It is important for Canadian policymakers to pay close attention to the proposed legislation and its potential impacts, and to consider appropriate responses to protect Canadian interests.
Napoleon complex??? 4:07
Stop the War ☮️ – so inflation, and cost of living doesn't keep increasing!
The real problem is Canada ranks 64 in granting permits for building and construction. No matter how much taxpayers money you throw to match Bidens IRA, it is a boondoggle for taxpayers.
and with our government we will spend 5-10years just going thru the approval process before any infrastructure project can even start … we be past and heading towards the next recession before Canadians see any benefits….
Just talk never helped anybody
Isn't the fact that the inflation reduction act increases inflation kind of Orwellian?
It’s pay to play capitalism. Governments have always greased the skids to attract capital in the creation and maintenance of markets, nothing really new here.
With more business going on in the USA Canadian companies can see what areas they can concentrate on to increase trade with them. They do business with Canada in order to complete their transactions.
It's extrodinary that out of the blue both government somehow believe that they should be using taxpayer money to build additions to manufacturing plants or to buy freezers for Loblaw like in Canada's case.
Once upon a time government assistance was for projects that were beyond the capabilities of the private sector like building Seaways or Trans Canada Highways and Railways not to mention in the case of Trudeau he's involving himself in attempting to pick winners and losers in industry when nothing in the government itself is working properly.
It's really unexplainable.
The rest of the world is joining up together, expanding BRICS and trying to establish cheap energy projects. Meanwhile, the West is dying and is being isolated while these morons are worried about the weather in 150 years. Truly memorizing.
America for Americans
Inflation reduction act= bankers get richer act. EVERY SINGLE TIME