Open Letter to Canadians
August 21, 2021
FOR IMMEDIATE RELEASE
Red Deer – Mountain View, AB
Cost of living is defined as the cost of maintaining a certain standard of living. It compares what an average person can expect to pay to acquire food, shelter, transportation, energy, clothing, education and healthcare. If your cost of living increases, your paycheque is being eroded.
Throughout the first half of 2021, Canadians have seen significant spikes in inflation rates year-over-year. Many economists have suggested that this is simply the result of comparing 2021 to 2020 where widespread economic shutdowns led to historical price drops. I disagree.
The Liberal government has opened the printing presses wide open and injected the economy with hundreds of billions of additional dollars. With more dollars in the market and less goods in the market (again due to widespread economic shutdowns brought on by government mandates), the price of available goods rises.
Typically, central banks curb inflation by increasing leading rates. With lending rates at historical lows, it is very possible that the Bank of Canada raises interest rates sooner than expected to curb rising inflation. How would a 3% jump in lending rates impact your variable rate mortgage?
Suggestions for addressing the underlying issue:
The Liberal government must immediately stop borrowing and printing money.
All levels of government need to implement drastic spending cuts to reduce the size and scope of operations. Free markets deliver goods and services more efficiently than government.
End the use of fiat money (government-issued currency not backed by a commodity) and instead move to a system of representative money, potentially backed by oil.
If the Bank of Canada has control over the economy, Canadians do not have control over their futures.
Sincerely,
Jared Pilon
Libertarian Party Candidate for Red Deer – Mountain View, AB