Finance Minister and Deputy Prime Minister Chrystia Freeland outlined the federal government's $8.9 billion plan to "help the Canadians who need it most," and claimed Russia's invasion of Ukraine means countries are entering a "new world."."The post-Cold War world order that we tried to build, starting on November 9, 1989, the day the Berlin Wall fell, that ended on February 24, the day of Vladamir Putin's barbaric and illegal invasion of Ukraine. It's over," Freeland said.."In its place, we are entering a new era. One of friend-shoring. One in which our allies know it's worth spending a little more to build their supply chains with other democracies.".During a keynote speech before the Empire Club of Canada on Thursday, Freeland outlined the six measures in the government's affordability plan: $1.7 billion in new support for workers; cutting child care fees for Canadian families by an average of 50% by the end of 2022; a 10% increase in Old Age Security; a one-time $500 payment to one million Canadian renters struggling with housing costs; dental coverage for Canadians earning less than $90,000; and inflation-indexed benefits like the Canada Child Benefit, the GST Credit, the Canada Pension Plan, Old Age Security, and Guaranteed Income Supplement..“But for the fiscal hawks among you, fear not,” Freeland added. “This is new money for the Canadians receiving it this year, but we built these measures into our last two budgets.”.Freeland said the federal government's ability to spend is "not infinite" and that while Canada has the lowest debt-to-GDP ratio of all G7 countries, she is "determined" to see it continue to decline..“Our pandemic debt must — and will — be paid down.".Freeland highlighted the economic recovery Canada made since early 2020, when the country was in the "throes of the deepest recession since the Great Depression." She pointed out that Canada recovered 170% of the jobs lost during the first pandemic lockdown, and that unemployment now sits at a record low of 5.1%.."But if the data is so rosy, if the rebound is so strong — and it is — why don't we feel very good? Why are Canadians so worried?" Freeland asked.."I think everyone here knows the answer. Inflation.".Freeland, who claimed she rode her bike to the conference and that her family does not own a vehicle, said Canadians will "wince" today when they fill up their gas tanks or pay for groceries..But Freeland argued Canada's inflation, currently at 6.8%, is lower than other G7 countries. The United Kingdom's inflation rate is 9%, while Germany's is 9.2%..Freeland said rising inflation could be attributed to the shift in demand from services to goods caused by the pandemic; China's strict "Zero COVID" policies squeezing supply chains; and Russia's invasion of Ukraine pushing up food and energy prices..Freeland made no mention of the Bank of Canada's money-printing policies, which several economists have said is responsible for higher inflation.."At this time of global economic and political volatility, undermining Canada's fundamental institutions very much, including the Bank of Canada, is highly irresponsible and economically illiterate.".Freeland said given global economic uncertainty, it would not be "wise" for her to "stand here and and rule out the need for further support in the future.".“We have been through two years of remarkable turbulence,” said Freeland..“Our challenge now is to land the plane. A soft landing is not guaranteed. But, fortunately for us, there is no country in the world better placed than Canada to achieve one.”
