In that vein, as we were discussing in pre-budget consultations, I believe it's really important that we include the context of where Canada is in terms of the battle of fiscal and monetary policy and its effect on inflation. Yesterday, the Governor of the Bank of Canada, Tiff Macklem, at his monetary policy report press conference reiterated his concerns around government spending adding more to demand than what supply can keep up with. In other words, when you have too many dollars chasing too few goods, you get inflation.
The Liberals have had inflationary deficit after inflationary deficit, adding more to the national debt than every government before them combined. That flooded the economy with money, driving up demand, while historic low productivity meant supply could not keep up. As a result, we have 40-year highs of inflation, followed by the fastest interest rates hikes in Canadian history; and now mortgages, household debt and even government debt are all more expensive. As we discuss with Canadians what Canadians need to see in the next budget, I think it's important that we include the context given yesterday by Governor Macklem.
That is why I wish to move the following motion:
That the committee concur in and report to the House of Commons the comments made by the Governor of the Bank of Canada on October 25, 2023, when he said quote, “We expect government spending to grow at 2.5 per cent. What that means is, if all those spending plans are realized, government spending will be adding to demand more then to supply is growing and in an environment where we are trying to moderate spending and get inflation down, that’s not helpful.”
I'd like to move that motion and continue on.