For Canadians like Missy Anderson, the cost of living is becoming a crisis.
She is a 38-year-old mother of four and lives in Burlington, Ontario. Like many other Canadians, she has been forced to make tough choices about how to spend her money.
“It’s a juggling act,” she said in an interview with CBC’s The House that aired Saturday. In addition to the cost of feeding and caring for her children, the low-dose chemotherapy treatment for stage 1 cervical cancer presents another challenge for the freelance writer.
Inflation in July increased by 7.6 percent compared to the same period last year. It was the first monthly decline since 2021, but living expenses are still eating away at Anderson’s budget — and she’s hoping for help from politicians.
LISTEN | Which party has the best plan to fight inflation?
CBC News: The House17:09 Which party has the best plan to fight inflation?
Missy Anderson, a mother of four, talks about her struggles to keep up with the cost of living, and experts Trevor Tomb and Sean Speer discuss the politics and policy of possible solutions.
“They need to understand how the average Canadian lives. They offer benefits that I think sound good — things like a one-time $500 rent subsidy,” Anderson told host Catherine Cullen.
“If you’re in that area, it’s not going to help you much. It’s like two trips to the grocery store.”
Anderson is hoping for more help as soon as possible.
The federal government announced new measures this week aimed at helping the affordability challenge, including the rent allowance described by Anderson, as well as increased GST credits and a new dentist allowance.
“These are things that will change people’s lives right now, but they’re targeted enough that they won’t add to inflation,” Prime Minister Justin Trudeau said.
Opposition leader Pierre Poilievre, however, claimed the plan would “add fuel to the fire” of inflation. Scotiabank head of capital markets economics Derek Holt also criticized the government for spending more.
There are no easy solutions for short-term pain
Trevor Tombe, an economist at the University of Calgary, told The House that the recently announced measures are unlikely to have a significant effect.
But he noted that it may be difficult to address the root problem of inflation quickly, so one of the things that governments need to be honest about is “recognizing clearly and explicitly that there is not much that can be done in the very short term,” he said.
Much of the inflation is caused by global factors and high energy prices, Tombe said, on which government spending or transfer policies may have limited impact. A rate hike by the Bank of Canada will also take time to have an effect on inflation, Tombe noted.
Bank of Canada Governor Tiff Macklem walks outside the Bank of Canada building in Ottawa on June 22, 2020. Economist Trevor Tombe says it will take time for interest rate hikes to cool inflation. (Blair Gable/Reuters)
Sean Speer, a senior fellow at the Munk School of Global Affairs and a former economic policy adviser to Stephen Harper, agreed that long-term planning is needed to comprehensively address the major challenges facing Canada today.
“I don’t think we’ve heard enough from the government or about short-term plans to increase supply, but more important long-term plans.” There are so many areas where we find that supply is constrained: health care, housing, energy,” he said.
The NDP claimed victory in the benefits announcement
Speer noted that Poilievre has taken advantage of being faced with the problem of inflation and there may be a battle now brewing over the federal carbon tax.
“While the purpose of the carbon tax is to raise prices over time, there has been such a significant increase in energy prices over the past 12 months that it risks accelerating the increases predicted by the carbon tax even faster,” he said.
NDP Leader Jagmeet Singh told The House that the new announcement – which he is touting as a major victory – will help ease costs for Canadians by reducing the burden of dental costs while other prices remain high.
LISTEN | NDP Leader Jagmeet Singh spoke of new benefits Poilievre’s victory:
CBC News: The House9:31 Jagmeet Singh trumpets dental plan as battle for working-class vote heats up
NDP Leader Jagmeet Singh spoke about new federal measures announced this week aimed at helping ease the affordability problem and reacted to the election of Pierre Poilievre as Conservative leader.
But he said dental care is only a temporary plan. He told the Canadian Press that his party will no longer be flexible with the government on this issue and expects a full program next year.
But Missy Anderson is looking for action now, not future promises.
“People have kids, people work hard every day and can’t afford the bills. Something has to start happening.”
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