Madam Speaker, I would like to be very clear. Inflation is a very real concern and Canadians are feeling its impacts, absolutely. However, as experts have pointed out, inflation is a global phenomenon driven by rising energy prices, a global economic rebound, supply chain constraints and many other factors. Inflation is unfortunately high almost everywhere at the moment. Yes, it is 4.7% here in Canada, but it is 6.2% in the United States, 6.2% in Mexico, 4.4% in the European Union and 4.2% in the United Kingdom. The G20 average is actually well above 5%.
If the Conservatives are saying that our policies to support Canadians and small businesses through COVID-19 are directly linked to the increase in inflation, well let me debunk that argument as well. Let us compare the data on inflation pre-pandemic and now among OECD countries. Between the late 2019 period and today, the inflation rate in these 38 countries increased by an average of 2.4%. The United States, for example, saw a 3.6% increase; Spain, 3.1%; Germany, 2.4%; and New Zealand, 3.5%. In the same time frame, Canada's inflation increased by 2.1%. It is crystal clear from these figures that the choice we have made to support Canadians through the pandemic is not the cause of inflation.
Maybe inflation is not the indicator that we wish to look at. What about the deficit? The member for Carleton said, “COVID required that we spend money, but we did not need to have the biggest deficit in the G20.” First, let me begin by saying that it is very good to hear the member now recognized that spending was needed at all, which is a change in tone from calling such spending “big, fat government programs” that his party does not believe in. Much more importantly, the premise of the statement is completely wrong. Canada does not have the largest deficit in the G20. No, Canada's 2020 deficit was smaller than that of the U.S. and that of United Kingdom, and the last time I checked, both of these countries were still very much a part of the G20.
The implication of the statements made by the Conservative member is that this was somehow a waste, that we have nothing to show for the deficit. Nothing could be further from the truth.
The numbers speak for themselves: $90 billion was spent for the CERB and the CRB; $80 billion was spent on the wage subsidy and rent subsidy; another $10 billion was spent in the form of direct payments to seniors and low-income households; and $17 billion was spent to support the provinces and territories through the safe restart agreement. Those four items alone account for three-quarters of the federal deficit. Which one of those programs and what part of that spending would the Conservatives have scrapped? I venture that the answer would be none, and that is why despite the rhetoric that we hear today, the members opposite voted for the wage subsidy, the rent subsidy and the CERB.
The reality is that Canada had the fiscal room to intervene and our Liberal government did exactly that. As the IMF stated last month, “Government budget support measures during the COVID-19 pandemic have saved lives and jobs.” Not only did Canada have among the lowest COVID death rates in the western world, not only did Canada get back to pre-pandemic employment numbers faster than other countries, but Canada still has a AAA credit rating, Canada still has the lowest net debt in the G7 and last year, Canada actually saw its debt interest payments decrease by more than $4 billion. The fact that we spent to support Canadians did not harm our economy. It is to the contrary.
The choice today is very clear. It is not to relitigate the COVID support measures our government put in place, though I am more than happy to do that any day of the week. No, what we are debating today is whether we will continue to supporting our restaurants, our hotels, our travel agents, our parks, our museums and our theatres. All of them are incredibly important and all of them are worth voting for today. I would encourage all members of the House to leave the rhetoric aside and continue to support Canadians through the pandemic.