As expected, talk of the cost of living crept up again online today, with some more hyperbolic nonsense coming from one of our favourite Conservative talking heads. But this time, economist Stephen Gordon stepped in to provide a reality check – only to find more StatsCan “truthers” coming out of the woodwork. Remember, for populists, they don’t like data that contradicts their narratives, so they try to insist that the data is somehow biased or wrong. Gordon sets them straight, and makes the even more salient point that if the Conservatives (and by extension the NDP) are so concerned about cost of living increases that are within the rate of inflation, then perhaps they need to articulate what their monetary policy goals are – which is what the targeted rate of inflation amounts to. Plenty to think about and remember here.

All of those things are in the Consumer Price Index. The CPI is *designed* to measure the cost of living. If you have a better index, let's see it. https://t.co/kzIMBLWH47

— Stephen Gordon (@stephenfgordon) July 30, 2019

I think I'm going to bang this drum for a while. If the CPC thinks that CPI inflation understates increases in the cost of living, what mandate would they give the Bank of Canada? Because obviously they think the Bank is aiming at the wrong target https://t.co/HduoK46ZDl

— Stephen Gordon (@stephenfgordon) July 30, 2019

If the CPC thinks that the 'cost of living' has grown faster than the CPI, and that monetary policy should reflect that, then they must think monetary policy has been too loose. https://t.co/REuHwbADdb

— Stephen Gordon (@stephenfgordon) July 30, 2019

Controlling the growth of the cost of living is the Bank of Canada's job. And apparently you don't think that they've been hawkish enough. https://t.co/TQjqgGEmBp

— Stephen Gordon (@stephenfgordon) July 30, 2019

Debt loads are high because interest rates have been low. You're developing a remarkably coherent case for a more hawkish monetary policy than what we've had for the past 25 years. https://t.co/R9bH4Sfeul

— Stephen Gordon (@stephenfgordon) July 30, 2019

I can't think of the last time when a party built its messaging around the theme that monetary policy had been too lax, but that's where the CPC is going.

— Stephen Gordon (@stephenfgordon) July 30, 2019

Free question for journalists: The Bank of Canada's mandate is up for renewal in 2021. Given the CPC's concern about how the 'true' cost of living isn't reflected in the CPI, what mandate would a CPC govt give the Bank? Why?

— Stephen Gordon (@stephenfgordon) July 30, 2019

But the point is that if you're complaining about the cost of living rising too fast, then you're complaining about a monetary policy stance that hasn't been tight enough.

— Stephen Gordon (@stephenfgordon) July 30, 2019

Good reads:

• As expected, the Liberals on the foreign affairs committee blocked the attempt to investigate the apparently “muzzling” of former diplomats.
• Chrystia Freeland personally called those former diplomats to apologise and assure them it wasn’t a muzzling attempt (and one says it was a miscommunication).
• Ralph Goodale has stated yet again that no decision will be made on Huawei’s participation in 5G until after the election.
• The government has dipped into the Strategic Innovation Fund to the tune of $194.9 million to subsidize steel and aluminium – which isn’t what the fund is for.
• Here’s more about that upcoming air show that will feature the F-35, whose creators are now calling a “mature aircraft.” (Remind me, did the fix the lethal ejection seat?)
• There is grumbling that the Canadian mission in Latvia is being plagued with complaints of harassment and unprofessional behaviour.
• The government spent $17.7 million on advertising in the first quarter before the pre-writ moratorium, compared to $56.2 million the previous government spent.
• Andrew Scheer admits that there can’t be any trade deal with the UK in advance of Brexit, even though he travelled there last year to push for one.
• Here’s a fact-check on the Conservatives’ climate plan and whether it could meet the Paris targets.
• Liberal minister-turned-Independent MP Hunter Tootoo says he’s not running again this fall.
• Here’s more about the meeting between the Saskatchewan, Alberta, Ontario and New Brunswick attorneys general on their carbon price challenge.
• Susan Delacourt reports on the end of Warren Kinsella’s relationship with the Green Party, which was apparently supposed to be time-limited all along.
• Colby Cosh casts a sharp look at the environmental policies of the NDP and Green Party, and finds them largely nonsensical. Look surprised!
• My column looks at some post-election scenarios in the Senate, and how the Independent Senators Group may not survive any of them.

Want more Routine Proceedings? Become a patron and get exclusive new content.