By Ian Croft
Local Journalism Initiative Reporter
With prices in the grocery store and at the gas stations getting higher and higher, many Canadians are struggling with these new economic pressures. Franco Terrazzano, federal director of the Canada Taxpayer Federation, spoke on what is causing inflation as well as what Canadians can do to push back against its rise.
“The government is a key driver of inflation, it’s creating a perfect storm for inflation by having too many dollars with too few goods,” said Terrazzano. “The more dollars that the Bank of Canada prints, the less your dollars in your bank account or in your savings account will buy, and we have seen the Bank of Canada have its printing press on overdrive during the pandemic. During the pandemic, the Bank of Canada has printed more than $300 billion right out of thin air. The big problem is we obviously can’t print new homes, we can’t print new farmland out of thin air. We have more than $300 billion printed out of thin air from the Bank of Canada — that’s the inflation tax that’s the key factor that’s driving up across-the-board in Canada.”
Terrazzano also went into more detail about how the inflation is directly affecting Canadians.
“It’s driving up the price of all goods we try to buy and we are seeing inflation is now three decades high and Canadians are struggling,” said Terrazzano. “Canadians are feeling it every time they go to fuel up their car — they can barely afford it. Canadians can feel it every time they can barely afford to put ground beef in a grocery cart. This is a very serious problem facing Canadians and the government has made things worse by having its printing press on overdrive, by spending like crazy for years, and by raising taxes during the middle of the pandemic. There are three things that we want to see the government do to reverse inflation. We want the government to rein in its out of control spending and balance the budget, we want the government to turn off the printing press, and we want the government to reduce taxes and let Canadians keep more of their hard earned money.”
Terrazzano spoke on the immediate steps that Canadians can use to try to combat the rise of inflation.
“Well, what we always encourage Canadians to do is participate — and by that, I mean contact your member of parliament,” said Terrazzano. “Email them, phone them, send them a picture of how much you pay on a receipt from the gas station, tell them that enough is enough. Stop the crazy spending, reduce taxes, and make sure the printing press is not on overdrive. We always encourage Canadians to contact their member of parliament and tell them that they need to rein in the inflation by reining in the spending and lowering taxes.”
Finally, Terrazzano touched on what could be some of the repercussions on the economy if the Canadian government took a hard turn to try and immediately pull us out of this increasing inflation.
“Look, I don’t have a crystal ball, so it’s tough to give any type of prediction like that, but what we have already seen is that the government makes life harder, extremely hard for many Canadians by having the inflation tax, by spending like crazy, by having the Bank of Canada to print more than $300 billion out of thin air during the pandemic, by raising taxes like the carbon tax, like payroll taxes, like alcohol taxes during the pandemic,” said Terrazzano. “I think the real risk facing Canadians right now is that they’re having a tough time fuelling up on their way to work. They’re having a tough time affording the necessities in life like housing, like groceries. I think about the real risk facing Canadians today, and the way that the government can mitigate that real economic growth that Canadians are facing is by raining in its out of control spending, stop printing money and reduce taxes.”