SoVote

Hon. Pierre Poilievre (Leader of the Opposition, CPC)

Jun/7/23 3:11:33 p.m.
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Mr. Speaker, has he really sunk to the low of exploiting these fires for political gain to distract from his inflationary and high interest rate policies? Is that what it has come to? Is he so ashamed of his economic policy and record— Some hon. members: Oh, oh!

49 words

Context: House Hansard - 208 - Jun/7/23

Mr. Marty Morantz (Charleswood—St. James—Assiniboia—Headingley, CPC)

Jun/7/23 8:04:09 p.m.
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Madam Speaker, there is one aspect of the budget on which I want to get clarification. In the fall economic statement, in the 2027-28 business year, the fall economic statement projected a $4.5-billion surplus. Only 140 days later, on March 28, the budget introduced a table for the same year that showed a $14-billion deficit, an $18.5-billion swing. I wonder if the member could give us some details as to why there was the change.

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Context: House Hansard - 208 - Jun/7/23

Ms. Rachel Bendayan

Jun/7/23 8:05:42 p.m.
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Madam Speaker, I find it ironic that the Conservatives are talking about answering questions. Several times, we have asked the Conservatives what they are proposing by way of economic policy or what they are proposing by way of climate policy, and the answer has been silence. It has been silence on the other side. They have no plan for the economy. They have no plan for our planet. They have no plan for our future.

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Context: House Hansard - 208 - Jun/7/23

Hon. Pierre Poilievre

Jun/7/23 8:33:08 p.m.
Watch

Madam Speaker, as I was pointing out, this practice of so-called quantitative easing was not invented in Canada. In fact, it started long ago in Japan, which caused a massive gap to appear between the rich and the poor, because the Japanese government printed cash, inflated asset values, left the working class behind and inflated the wealth of the super-rich. This led to a long-standing slump in Japanese economic growth, because investors no longer had to invest in productive assets that would generate wealth for the Japanese economy. Rather, they could just sit on their property, their stocks or their bonds and allow the Japanese central bank to inflate the values. The Americans then replicated this idea of quantitative easing in the U.S. financial crisis. The result was a disaster. It was a decade of very slow economic growth. Furthermore, there was a major expansion in the gap between rich and poor. While the working class in America was losing its jobs to automation and outsourcing, it was not enjoying any of the lower prices that those competitive forces should have provided because the central bank was neutralizing cost savings by inflating the cost of living by printing cash. We saw a massive explosion in the wealth of Wall Street and Silicon Valley, while the working poor in industrial states, such as Pennsylvania, Ohio and others, found themselves more and more disenfranchised. Their wages were going down, yet their prices were going up. They looked around and saw incompetent CEOs and other financial sector insiders, the same ones who had caused the U.S. financial crisis, not going to jail where they belonged. Rather, they were getting richer and richer. Therefore, the working poor came to believe that the system had ultimately been rigged against them. Now I bring this to the present, because the government claims that because all central banks were engaging in quantitative easing, we had to do it as well. The American federal reserve is our big, friendly neighbour to the south. The argument goes that if it does something, we have to do it too. However, that is provably false. In the 2008-09 financial crisis, the American government printed cash to buy government debt. They did something called quantitative easing. In Canada, we did not do that. Our government signalled to the central bank that it would not be authorized to participate in fiscal policy by printing cash to buy government bonds. Yes, we ran small, temporary deficits to get through that financial crisis, but we did it by borrowing real money, not by printing cash. That is why we rebounded faster than the Americans did. We had lower unemployment. We were the last in and the first out of the recession, and we never had inflation above 4%. We were back to our inflation target in a year. This proves that we did not need to do what the Americans did, just as our mothers taught us. Just because our friends are jumping off a bridge, does not mean we should do the same. We know that the Swiss did not print cash during the COVID crisis. Rather, they used real money; when they ran deficits, they borrowed real money. They quickly returned to a balanced budget, and the result was the lowest unemployment, the lowest interest rates and the lowest inflation. This was despite the fact that their European neighbours all had massive inflation crises because their central bank on that continent had behaved differently. All these experiences were laboratories to demonstrate the folly of the government's actions. I called this folly out on the floor of the House of Commons as early as the fall of 2020, when all that cash was moving into our economy and already beginning to inflate the cost of living. Core inflation was already rising and starting to break above the 2% target, yet they continued when it was clear that there was—

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