Liberal (Minority/Majority) Government 2025 - ???

[Halifax Tar]

I am suggesting that this is NOT a function of individual government incompetence, but rather a rational reaction to a situation for which the main control lever available to a sovereign nation is its own fiscal policy - ie interest rates.

The fact that a lot of the global fiscal pressures are related to specific US policies such as tariffs and a war of choice is galling, but railing against it has no effect, What individual economies can do is limited, but it seems that many have come to the same conclusion vis a vis rates.

I am not pointing at others and saying they are just as bad, I am pointing out that there has been a common response to the economic environment. When gas is present, the prudent thing is to put on a gas mask. That is just plain smart as opposed to a sign of weakness or incompetence.

Respectfully, I don't believe we live in an economic silo insulated from the geopolitical realities shaping the world today. External factors undoubtedly influence our economy and the challenges Canadians face.

At the same time, I believe our current economic situation is also, in part, the result of our own decisions. Fiscal, foreign, and defence policies all play a role, and I think it is fair to scrutinize the direction taken over the past decade, particularly since 2015.

Ultimately, Canadians elected a government that campaigned on making life more affordable and strengthening the economy. Given those commitments, I believe it is reasonable to hold the government accountable to its platform and measure its performance against the promises it made to voters.

 

[PPCLI Guy]

I respect that perspective, even as I do not share it

 

[Halifax Tar]

I respect that perspective, even as I do not share it

lol I feel like thats us right now... I'm Dwight BTW

 

[daftandbarmy]

Ultimately, Canadians elected a government that campaigned on making life more affordable and strengthening the economy. Given those commitments, I believe it is reasonable to hold the government accountable to its platform and measure its performance against the promises it made to voters.

Vassy Kapelos was trying to get the Defence Minister to agree with that last night on Power and Politics but he was bobbing and weaving, not wanting to reveal anything prior to the budget announcement apparently.

I guess Liberals are gonna Liberal...

 

[dapaterson]

lol I feel like thats us right now... I'm Dwight BTW

Dwight without the sex appeal

 

[YZT580]

I am suggesting that this is NOT a function of individual government incompetence, but rather a rational reaction to a situation for which the main control lever available to a sovereign nation is its own fiscal policy - ie interest rates.

The fact that a lot of the global fiscal pressures are related to specific US policies such as tariffs and a war of choice is galling, but railing against it has no effect, What individual economies can do is limited, but it seems that many have come to the same conclusion vis a vis rates.

I am not pointing at others and saying they are just as bad, I am pointing out that there has been a common response to the economic environment. When gas is present, the prudent thing is to put on a gas mask. That is just plain smart as opposed to a sign of weakness or incompetence.

so with massive tariffs causing lay-offs, closures etc. and with the price of energy at least a third higher, with groceries and everything else going up because of the aforementioned energy hikes, with housing costs not under control the solution is to add another increase in costs to the consumer? I am sorry, and I lack significant knowledge re: financing but that doesn't seem like a way to help people survive.

 

[Halifax Tar]

Dwight without the sex appeal

If I had a feeling left it would be hurt

 

[PPCLI Guy]

so with massive tariffs causing lay-offs, closures etc. and with the price of energy at least a third higher, with groceries and everything else going up because of the aforementioned energy hikes, with housing costs not under control the solution is to add another increase in costs to the consumer? I am sorry, and I lack significant knowledge re: financing but that doesn't seem like a way to help people survive.

The main tool that the Bank of Canada has to combat inflation is the setting of interest rates.

Having said that, there are other methods that can reinforce BoC fiscal policy, and Canada needs to get after those...but those methods take time to enact, and even longer to have a lasting effect. It seems to me that the short term fix of raising interest rates may be necessary to address the rising costs of everything right now. I can only hope that Canada will finally make some tough structural decisions - something that we haven't seen since Chretien / Martin.

Here are some structural measures that we should be pushing in concert with rate hikes:

Alternative and Complementary Economic Tools
While the central bank relies on monetary policy (interest rates), other levels of government and structural policies can influence inflation:

• Fiscal Policy: Federal and provincial governments can adjust government spending, taxation, and public investments. Tightening fiscal policy (reducing spending or cooling government-led demand) can complement high interest rates, whereas large deficits or spending injections can sometimes work against them. [1]
• Supply-Side and Structural Policies: Many economists argue that inflation driven by global factors—such as energy costs, supply chain bottlenecks, or housing shortages—is better addressed by structural fixes. This includes policies to streamline home-building regulations, invest in domestic infrastructure, or enhance market competition. [1, 2, 3]
• Targeted Regulatory Measures: Governments and regulatory bodies can influence specific sectors (such as housing markets, mortgage underwriting rules, or energy/grocery supply oversight) to ease localized price pressures without broad-brush macroeconomic rate hikes. [1, 2]

@Halifax Tar it seems that a bit more research on my part has brought me closer to your view.

 

[daftandbarmy]

Welcome to the economic hurt locker...

Canada’s GDP Growth Slows to 0.9%: What the PBO Forecast Means for Mortgage Rates, Renewals and Homebuyers (2026)​

Canada's economy is slowing. The Parliamentary Budget Officer (PBO) now projects that real GDP growth will slow to just 0.9 percent in 2026, down from its June estimate, as U.S. tariffs and Canadian countermeasures keep weighing on the economy. For homebuyers, homeowners renewing a mortgage and anyone watching mortgage rates in Canada, that raises a simple question: what does slower economic growth mean for my mortgage?

This guide breaks down the PBO's October 2026 outlook in plain language, explains how slower growth, inflation and the Bank of Canada connect to fixed and variable mortgage rates, and shows what buyers, renewers and self-employed borrowers can do right now.

The PBO points to trade. Canada-U.S. trade talks broke down at the end of August, a new round of U.S. tariffs followed, and Canada responded with counter-tariffs. The PBO estimates the trade-weighted U.S. tariff rate on Canadian imports has moved to between 5.3 and 7.7 percent since June, and that permanent trade measures since early 2025 could lower real GDP by about 1.4 percent over the medium term compared with a no-tariff scenario.

Why Is Canada's Economic Growth Slowing?​

Parliamentary Budget Officer Annette Ryan summed it up this way: "Additional trade measures and ongoing uncertainty are weighing on growth in real output – what we produce as a country."

Canada’s GDP Growth Slows to 0.9%: What the PBO Forecast Means for Mortgage Rates, Renewals and Homebuyers (2026) | IndiBrick

Canada's GDP growth is slowing. Learn what the PBO's 2026 forecast means for your Canadian mortgage rates, renewals, and home purchase plans.

indibrick.ca

 

[Brad Sallows]

Respectfully, pointing to others and saying they are just as bad is a deflection from the issue being discussed.

I read the point as suggesting that there is a common factor, that factor being the behaviour of the Trump administration. That factor exists and has effects.

These things are all true:

• the Trump administration is partly responsible for the economic and fiscal turmoil countries and lesser jurisdictions experience
• countries and lesser jurisdictions could mitigate some of their previously self-inflicted damage by tweaking factors under their control
• countries and lesser jurisdictions are reluctant or outright refuse to give up or modify some of the policies which produced their self-inflicted damage

People are mad that Trump has squeezed their fiscal and economic freedom of manoeuvre, but the choice is entirely theirs to take the hits or restore some of the freedom of manoeuvre they took away from themselves.

Trump is the only pressure so far that has managed to convince some people to undo some of their self-indulgent ruinous policies. Example: internal trade barriers in Canada, defence spending in Canada and Europe. No prior argument or action could convince them. I take wins where I can get them.

 

[Brad Sallows]

The main tool that the Bank of Canada has to combat inflation is the setting of interest rates.

Having said that, there are other methods that can reinforce BoC fiscal policy

The overwhelmingly massive one, mentioned in the list you provided, is government fiscal policy; specifically deficit spending; more specifically, almost all governments have a spending problem. Defenders of high spending will often try to point to a revenue problem - a tax cut, a foregone taxation opportunity, a bunch of wealthy chickens to be plucked (once) etc - but simply reading year-by-year revenue figures tells that tale. If we agreed to freeze all revenue policies in place for a decade, it would become obvious that accretion of regulations and addition of new programs is the root which must be addressed.