Austerity is no solution for inflation

The Monitor

Surely we have enough to worry about without renewed warnings about runaway inflation. 

But even amid all our various crises, inflation continues to make its way into the headlines: “Canada’s inflation rate hits a three-decade high”; “Is Canada’s inflation rate out of control?”; “Trudeau must act to ease worsening inflation.” 

We don’t need economists to tell us prices are going up, and we don’t need politicians to tell us we don’t like it. Just how worried should we be? What are the implications for all of us, especially for people already barely surviving week to week? What’s really causing prices to rise, and what’s to be done?

We are hearing, again, the almost ritualistic argument whenever prices spike that inflation is the inevitable result of generous government spending and that it can be stopped only by governments turning off the taps. Is this true? Is too much government what’s causing the spike in prices, and is cutting it down to size the only solution? 

Simply, no. Another round of austerity won’t deliver what most Canadians want, won’t address the real causes of inflation, won’t make the essentials more affordable. What it will do is make things worse.

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