As a foreigner who follows the Canadian news I saw on https://www.ctvnews.ca/business/economists-expect-rise-in-inflation-as-price-growth-fight-enters-new-phase-1.6517322 that the Canadian inflation rate is 2.8% which surprised me as in our country it is around 7%.
If so then how did Trudeau do it? How did he soak up all the money he printed during Covid?
Does that mean that housing and cost of living pressure has also been eased?
Would like to know your thoughts.
Oddly enough, the money was given to people who generally re-inject it into the economy. It’s not that it canceled out the expense, but a combination of allocation and a hefty amount of confidence in the reverse-trickle-down (which actually does work) effect brought the inflationary slippage within range where it was corrected within only a few years with an economy growing stronger before the shutdown.
We did a less-worse thing and also got super lucky. Comically, the Oranges would have handed out too much and damaged us for longer, and the cruel blues would have given no one anything and risked our safety to boot, so I have to admit the second-worst political party possible actually did the least-worst plan.
Also worth noting that while getting inflation under control is a good thing, people won’t feel the relief for a bit yet. Getting inflation lower doesn’t mean prices are going to drop to what they were last year, it means they’ll only go up a little this year instead of a lot. Since wages tend to lag behind cost of living, at least for the majority of the working class, it’ll be a while yet for people to settle in to their new financial situation.