On November 3, Deputy Prime Minister and Minister of Finance Chrystia Freeland released the 2022 Fall Economic Statement which outlines the Government of Canada’s plan to continue its stewardship of the economy and help Canadians with the cost of living.
This morning, the Honourable Randy Boissonnault, Minister of Tourism and Associate Minister of Finance, visited Winnipeg, Manitoba to highlight the 2022 Fall Economic Statement. He also sat down with this writer for a quick online interview about the government’s economic plans.
The first part of the interview focused on the salient points of the 2022 Fall Economic Statement, with an emphasis on portions that would be relevant to the Filipino-Canadian viewers of the program.
As the Member of Parliament for Edmonton Centre, the Minister recalled a meeting with the Filipino community in his riding who welcomed the Fall Economic Statement’s plan to eliminate interest on student loans.
He went on to mention the new Canada Workers Benefit which will be paid out quarterly, instead of having to wait a year; lowering credit card transaction fees for small businesses; and doubling the GST credit for six months.
According to the minister, the Fall Economic Statement also includes a $500 top-up to the Canada Housing Benefit and a Canada Dental Benefit that will provide payments of up to $650 per year, over the next two years for those without dental coverage and with an annual family income under $90,000.
In the latter half of the interview, the Minister was asked why the 2022 Fall Economic Statement calls for increased spending by the Government of Canada instead of spending less to slow economic growth and rein in inflation.
Opponents of government’s increased spending point out that it runs counter to the Bank of Canada’s recent increases to the benchmark interest rate which are intended to curb inflation.
Government Spending as Supply-Side Economic Investments
The Minister described the spending as a “fine balancing act between investing in Canadians who need it the most, and not putting so much on the table that we make the Bank of Canada’s job harder.” He went on to say, “It’s about making sure that the economy can grow and we have enough capacity in the economy to provide the goods and services. Because if we don’t, that’s what causes inflation domestically.”
He says that the government made the decision to invest in the supply side of the economy. “That means people. That means infrastructure. That means the capacity of our businesses and organizations to actually make more things, but also absorb more services so that the prices don’t go up as our population grows.”
The Minister reiterated that the economic plan focuses on people through the generation of sustainable jobs and increased immigration levels. He also recognized the economic contributions of Filipino immigrants to the Prairies and the rest of Canada.
In his parting message, the Minister acknowledged the economic hardship faced by Canadians, but also assured them of the government’s continued efforts. “We’re in this together. I know times are tough, but the government is going to focus on those people who really need our help the most.”
Following his media engagements, Minister Boissonnault was scheduled to have a roundtable discussion with the Manitoba Chamber of Commerce and a visit to Red River College.
The full details of the 2022 Fall Economic Statement can be found at https://www.budget.gc.ca/fes-eea/2022/home-accueil-en.html.