Canada’s Central Bank Warns Citizens to Prepare for ‘Lower Standard of Living’
by Frank Bergman
Canadians were hit with another gut punch this week after Bank of Canada Governor Tiff Macklem admitted the country’s economy is deteriorating and warned citizens to prepare for a “lower standard of living.”
During a Wednesday update in which Macklem also slashed Canada’s interest rate to 2.25 percent, the central bank chief effectively told working families that the days of prosperity are over.
“What’s most concerning is, unless we change some other things, our standard of living as a country, as Canadians, is going to be lower than it otherwise would have been,” Macklem told reporters.
“Unless something changes, our incomes will be lower than they otherwise would be.”
The bleak admission marks one of the clearest warnings yet that years of reckless government spending, high taxation, and runaway inflation under Liberal leadership have pushed the Canadian economy to the brink.
“Not Just a Cyclical Downturn”
Macklem tried to soften the blow but conceded that what Canada is facing “is not just a cyclical downturn.”
Pressed by reporters to explain what that meant, he pointed the finger at U.S. protectionist policies, including tariffs designed to protect American manufacturing.
However, analysts say Canada’s internal policies are the real culprit.
“Part of it is structural,” Macklem said, adding:
“The U.S. has swerved towards protectionism.”
“It is harder to do business with the United States.
“That has destroyed some of the capacity in this country. It’s also adding costs.”
He stopped short of uttering the word “recession” but acknowledged that growth is now “pretty close to zero.”