If you’re Justin Trudeau, the cure to inflation might be worse than the disease. Because for many voters, the cure will just feel like more of the disease.
“It’s working,” Bank of Canada Governor Tiff Macklem told The Globe and Mail’s Mark Rendell last week in an interview about the bank’s efforts to curb inflation. “But it’s not working as quickly or as powerfully as we thought it would.” Lower-income earners tend to perceive inflation as higher than other people do, economists’ studies have found, so Mr. Poilievre’s argument that inflationary big-government policies hurt the little guy might have fertile ground.
That’s bad for the Liberals, even if economists generally don’t agree with Mr. Poilievre that the big pandemic deficits run by Mr. Trudeau’s government are the chief cause of inflation – and to blame for the interest-rate hikes now being deployed to combat it. Those things actually run against the Bank of Canada’s goals, which include cooling the labour market, but of course, individuals don’t care about inflation as much as they care about their own standard of living and economic security.
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