Updated: Jul 19
Open Letter to The Honourable Chrystia Freeland,
Deputy Prime Minister and Minister of Finance
January 4, 2021
FOR IMMEDIATE RELEASE
Red Deer – Mountain View, AB
The economic collapse as a result of COVID-19 lockdown measures has pushed the real interest rate to record lows. This rate however, is very misleading given our current economic environment.
Baby boomers are retiring and are reducing the pool of available investable funds.
Reduced number of people in the workforce will result in higher wage demands.
Inevitable higher taxes required to repay significant debt brought on by lockdowns.
High likelihood of reduced outsourcing in order to protect domestic supply chains.
An economic plan that focuses on “green” incentives and destroys Canada’s oil and gas industry.
Inflated housing prices across Canada despite a poor economic outlook.
High consumer debt levels pre-COVID-19.
Long running Bank of Canada policy which encourages consumption over investment.
Your government has indicated that it is considering adding an additional $100 billion in stimulus spending once the “virus is under control”. As the Canadian economy is already flooded with record government spending, the potential for inflation is very real.
Considering the above, the return of high interest rates, as seen in the 1980’s, is entirely possible. While we may not see record high mortgage rates of 21.46% as posted in August 1981, even small increases in rates could result in significant interest rate shock for many Canadians.
Increases in inflation and interest rates would impact low-income families most adversely. Most notably, these individuals may struggle to pay for food, shelter and healthcare, all of which are basic necessities.
COVID-19 has already resulted in the biggest transfer of wealth in human history. I am strongly urging you to end the pursuit of a “green economy” and commit to a drastic reduction in red tape to allow the private sector to begin generating wealth, something the government is only able to redistribute.
Candidate for Red Deer – Mountain View, AB