November 7, 2024

‘Slash and burn’ economics not the answer to global woes, Freeland warns

Freeland #Freeland

Deputy Prime Minister and Minister of Finance Chrystia Freeland arrives for a news conference before tabling the Fall Fiscal Update in Ottawa, on Thursday, Nov. 3, 2022. THE CANADIAN PRESS/Justin Tang © JDT Deputy Prime Minister and Minister of Finance Chrystia Freeland arrives for a news conference before tabling the Fall Fiscal Update in Ottawa, on Thursday, Nov. 3, 2022. THE CANADIAN PRESS/Justin Tang

Canada won’t turn to “slash and burn” economics as the world braces for a looming economic downturn, Finance Minister Chrystia Freeland said.

Her comment comes after she tabled her fall economic statement on Thursday, which warned Canada is set to face “significantly weaker growth” and runs the risk of stubborn and prolonged inflation in the months ahead.

Despite a dire economic prognosis for the global economy, the fall economic statement still contained some $30 billion net in new spending measures over the next six years — and Freeland defended this approach in an interview with The West Block’s Mercedes Stephenson, aired Sunday.

“We saw a couple of weeks ago what happens when a hard-right government decides that the solution to a challenging global economy is just to slash and burn,” Freeland said.

“That’s what we saw with (former Prime Minister) Liz Truss in the U.K. And the outcome wasn’t pretty.”

Read more:

Inflation will chart Canada’s economic fate, Ottawa’s fiscal update shows

The Bank of England warned this week that the U.K. is headed for its “longest recession since records began, according to reports. Truss’s plan was widely panned as trickle-down economics, and the reaction was swift with Freeland saying the world saw the British pound “plummeting.”

“We saw British pension funds on the brink of collapsing and the Bank of England had to step in to save the British economy,” Freeland said.

“We are not going to do that in Canada.”

Times of economic uncertainty, Freeland added, are “when we need our social safety net the most, when Canadians need the security of EI and the CPP.”

“And we are going to defend that,” she added.

Conservative Leader Pierre Poilievre, meanwhile, slammed the economic statement in the House of Commons on Thursday, calling it an “inflationary scheme.”

The Opposition leader criticized the Liberals for not matching their $30.6 billion in new spending over six years outlined in the update with equal budgetary cuts, which he said will continue to drive up inflation and hurt average families.

Federal government warns Canadians of more economic challenges ahead

SHARE

SHARE

TWEET

SHARE

EMAIL

What to watch next

  • Queen Elizabeth II made a lasting impact on Prime Minister Trudeau and Canadians alike. Abigail Bimman joins Antony Robart from the nation’s capital for a look at the Queen’s historic reign and how Canada is mourning her death.

    Look at Queen’s impact on Canada

    Global News

  • Part of the group that blockaded Alberta’s busiest border crossing earlier this year was stockpiling weapons to use against police, according to allegations unsealed on Wednesday. Danica Ferris has more on the RCMP search warrant applications, parts of which have now been made public.

    Court unseals selection of Coutts border blockade documents

    Global News

  • A power outage in Jasper continued Tuesday after the nearby Chetamon wildfire affected a transmission line in Jasper National Park over the weekend. Morgan Black has more from the mountain town.

    Jasper townsite struggles through Chetamon wildfire power outage

    Global News

  • Alberta RCMP constable Cheri-Lee Smith joins Global News Morning Calgary with pointers on how parents and children can stay safe on social media as they head back to school.

    Beware of social media privacy risks during back-to-school season

    Global News

  • Calgary Catholic school district chief superintendent Bryan Szumlas joins Global News Morning Calgary to discuss the return to class for students, changes to the K-6 curriculum and making sure kids aren’t left behind after two years of educational disruption.

    Calgary Catholic schools prepare for new school year with some curriculum changes

    Global News

  • The Lethbridge & District Pro Rodeo kicked off during Whoop-Up Days on Thursday. While the grounds were flooded with puddles and boots caked in mud, rain didn’t dampen the spirits of those in attendance. Eloise Therien has more.

    Pro rodeo adapts to thunderstorms during opening night in Lethbridge

    Global News

  • Organizers of the 2022 edition of Whoop-Up Days at Exhibition Park in Lethbridge have partnered with members of the Blackfoot community to ensure they are being represented. That means some new additions, including the first-ever powwow during the event, have made their way onto the grounds. Eloise Therien has more.

    Whoop-Up Days 2022 looks to showcase more Blackfoot culture

    Global News

  • Southern Alberta students are quickly running out of summer and before long kids will be back in class to begin the new school year. The transition can be a stressful time, but school officials say it’s normal to feel some anxiety. Erik Bay tells us how parents can help ease their kids’ shift back to the classroom.

    Communication important in working through back-to-school jitters: Experts

    Global News

  • Lethbridge mayor receiving backlash for climate change tweet

    Lethbridge mayor receiving backlash for climate change tweet

    Global News

  • From the cost of groceries and gas to everyday items, affordability is a big issue for Albertans. According to a recent poll, it seems inflation is the No. 1 concern. As Nicole Stillger reports, politicians are taking note.

    Polling suggests inflation is No. 1 issue of concern for Albertans

    Global News

  • We are getting a closer look at the devastation left behind from a massive storm that tore through Cypress County in southern Alberta, Monday. As Dallas Flexhaug reports, several homes have been destroyed and it will be some time before we know the true extent of the damage.

    Southwestern Alberta storm destroys homes, kills livestock

    Global News

  • The Car Gurl’s Emma Hancock and Jeff McArthur explore some of the hot wheels at the 2020 Canadian International Auto Show.

    The best cars at the 2020 Canadian International Auto Show

    Global News

  • Domestic violence cases have risen during the pandemic in Alberta. Most women have fled violent relationships and we're learning how many have gone to court to seek protection. Sarah Komadina has the details.

    Emergency protection orders up about 20% in Alberta

    Global News

  • The man accused in a child luring case involving a 13-year-old Edmonton girl made a brief court appearance Tuesday. Noah Madrano, 40, is behind bars in Oregon City, facing multiple charges in the United States and Canada. Kim Smith spoke with the girl's father for an update on how she is doing.

    Man accused in child luring case involving Alberta girl makes 1st court appearance

    Global News

  • From getting rid of parking minimums to more dense infill and to bike lanes, we're getting a clear picture of how the city's urban policy push is leading to significant frustration in some cases. Vinesh Pratap has more from Garneau, where some residents worry practicality is being pushed aside by ideology.

    Edmonton’s urban policy push leads to some frustration

    Global News

  • A paper published by some University of Lethbridge professors is exploring a link between cycling infrastructure and the number of people who use their bike to get from point A to point B. Erik Bay has the details.

    Study suggests bike lanes in Lethbridge key to more transportation cycling

    Global News

  • Click to expand

    UP NEXT

    UP NEXT

    But event before the fall economic statement was tabled, Poilievre had been critical of the current government’s plans for the economy — including its push to increase CPP and EI premiums. He has characterized the increases as “taxes” and has repeatedly called on the government to change course.

    Speaking on Friday, Prime Minister Justin Trudeau pushed back. He accused Poilievre’s Conservatives of advocating for “failed” policies.

    “They’re actually doubling down on the failed, old theory of trickle-down economics, which means tax breaks for the wealthy while hollowing out the middle class,” he said.

    Meanwhile, the federal government did not state outright in its projections whether it believes Canada will fall into a recession, even as the chorus of voices predicting such a downturn grows louder.

    The consensus of economists polled back in September projected “significantly weaker growth” than predicted in Ottawa’s budget this past spring. The new baseline forecast sees overall gross domestic product (GDP) growth of “just above zero for the next several quarters” and unemployment rising to 6.3 per cent by the end of 2023.

    That projection also puts the odds of a recession in Canada at 40 per cent. But Ottawa’s update also provides a “downside scenario” outlining a worse case amid economic uncertainty.

    — with files from Global News’ Craig Lord, Amanda Connolly

    Leave a Reply