She is strong, Chrystia Freeland. It has just announced a policy to reduce inflation by proposing an inflation policy.
The current inflation is largely caused by global factors. The war in Ukraine has led to huge speculation on the energy markets, although there has been no global shortage of oil, gas or coal.
This increase in energy prices has spread to various sectors, including the food sector, through increases in transport and fertilizer prices.
Disruptions in production lines in China have also slowed production of several goods, particularly those containing electronic chips, such as cars and home appliances.
The inflation crisis is mainly due to a decrease in supply and an increase in energy-related production costs.
What does Ms. Freeland, in her immense wisdom, suggest?
It wants to allow Canadians to spend more and thus keep up demand even when supply has fallen.
Sums of money are released for poor families, for old people, for daycare costs, for dental care…
All of these measures are commendable and will help the poorest cope with inflation. But they will not fight inflation. You will speed it up.
Similarly, the subsidies for the construction of low-cost housing that it offers will increase inflation in the construction industry.
Worse, Ms Freeland pretends to believe there will be no economic slowdown or recession, or worse, that there would be no negative impact on unemployment if these scenarios materialized. Hence his commitment to welcoming even more immigrants to Canada.
But which land of unicorns does she live in?
This last measure is indeed deflationary.
Taking in more immigrants will, at best, put downward pressure on wages as workers need higher wages more than ever.
At worst, the economic slowdown or recession will lead to more unemployment, and recent immigrants will be the first victims.
If Ms Freeland were serious about her anti-inflationary policies, she would have to intervene directly in energy and food prices.
It should do this at source rather than at the consumer, to prevent intermediaries from sweetening themselves with the money the government gives to citizens.
At times like these, we recognize the big mistake that was selling Petro-Canada to private interests.
Petro-Canada was formed in 1975, after the first oil crisis, precisely to counteract blackmail by the oil companies. The mismanaged company was dismantled under the Conservatives and eventually fully privatized in 2004. As if his mismanagement couldn’t be undone.
But hey, Ms. Freeland prefers to take superficial measures that can get very expensive. But what does it matter? It’s just our money, not his.