NDP leader Jagmeet Singh says the worst inflation in 31 years is caused by corporate greed.
The federal Conservatives say inflation is caused by government over spending and deficits.
The Liberal prime minister says inflation is caused by a combination of Covid-related supply problems and war in Ukraine.
Who is right? Or are any of them right?
As with most political verbal street fighting, there is a grain of truth in each of their claims. Just a tiny grain, mind you.
The Conservative claim that over spending and continued deficits by the Liberals cause inflation has some merit.
Successive deficits helped stir the inflation pot. All those billions spent during the pandemic certainly helped roil the pot even more.
Question is: what would the Conservatives or the NDP have done differently? Would they have held back spending and let the country fall into a deep decade long depression?
One is reminded of dithering and delaying by Conservative Prime Minister Stephen Harper before opening the purse to alleviate the 2008-09 recession.
Singh’s is an overly simplistic and irresponsible assertion. It has a tiny grain of truth. Some businesses are taking advantage of inflation to bump up prices. It’s a matter of survival for most, who have had to keep the lid on prices due to competition.
Now all businesses are in the same pot and increased prices are needed and possible.
Prime Minister Justin Trudeau’s claim that COVID-related supply issues and the Russian invasion of Ukraine cause inflation has a grain of truth too.
Supply chain delays caused by COVID have left some products in short supply. Rising prices result.
Supply issues were inflated even more when giants like Walmart began buying their own shipping fleets.
And the Russian invasion has boosted food and fuel inflation. Reduced Russian oil supply puts pressure on world prices. Explosives in the Black Sea and the war threaten delivery of last year’s wheat crop and this year’s, harvest placing pressure on that staple food’s price.
The desire of post-pandemic society to buy things from travel to household items with money saved during the lockdowns has stirred the pot.
The pandemic caused a shift in personal attitudes from feeling one has to work at some job, any job to wanting to work at something personally rewarding and enjoyable. The resignation of millions in America and Canada who want to change occupations has reduced supply in the labour market.
Wages are increased, up goes the cost of production and sale price.
When politicians make claims about inflation or anything else, be cautious about believing them. The claims are designed to trick your brain into voting for them.
There is no one-size-fits-all cause of inflation. Nor is there any one-size-fits-all solution.
Ron Walter can be reached at ronjoy@sasktel.net
The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication.
