According to Jagmeet Singh, the current economic situation poses a risk of “massive job losses”. (Photo: The Canadian Press)
Ottawa — New Democrat Leader Jagmeet Singh has accused the Bank of Canada of causing the “coming recession” in part by “overly aggressive action.”
In a letter to Prime Minister Justin Trudeau, he criticized the central bank for repeatedly raising interest rates, successive hikes that he said are “taking us into a recession”.
“This one-size-fits-all solution to inflation is already laying the groundwork for a recession and making life miserable for most people, especially working families and those on fixed incomes, such as the elderly and those in need,” Singh wrote in his letter last Friday.
NDP leader attacks Bank of Canada Governor Tiff Macklem head on. He criticizes him for advising companies not to include higher salaries in the contracts they bind to their employees. According to multiple media reports, Macklem made the comments at a Canadian Federation of Independent Business event in July.
Mr Singh claims in his letter that he respects the Bank of Canada’s independence. “We also know that the Bank of Canada is following the mandate given to it by the federal government,” he added. Last fall, your administration had an opportunity to review the Bank of Canada’s mandate, but instead of changing it, you retained the traditional goal of targeting inflation, adding a search for maximum inflation and “sustainable jobs” to it.
According to Mr Singh, the current economic climate poses a risk of “massive job losses” and he is urging the Trudeau government to speed up labor insurance reform.
“We cannot go into a recession with an employment insurance system that leaves most of the unemployed behind,” he argues.
The leader of the New Democratic Party is also making a number of other demands. In particular, he calls for the introduction of a “tax on extraordinary gains” that serves to redistribute wealth. He also calls for changes in the law to take stronger action against “corporate greed that drives up the prices of basic necessities.”
Prime Minister Trudeau’s office, which was asked to respond to Mr Singh’s letter, referred The Canadian Press to Treasury Secretary Chrystia Freeland’s team.
“We know how difficult the past few months have been for people across Canada,” Freeland’s spokeswoman Adrienne Vaupshas said. She pointed out that Liberals have doubled the GST credit and intend to pass dental benefits legislation.
“We call on all political parties to vote for these targeted, fiscally responsible and compassionate support measures,” she added.
Incurable food practitioner. Tv lover. Award-winning social media maven. Internet guru. Travel aficionado.