Roundup: Lies about inflation and the central bank

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For weeks, the Conservatives (and Pierre Poilievre in particular) have been making a bunch of bogus and nonsensical attacks against the government and what they term the “inflation tax,” which makes absolutely no sense, but is predicated on the wild notion that the Bank of Canada is allegedly printing money to finance the government’s “out of control” deficits, and that this is going to drive up inflation and turn us into Venezuela. It’s bullshit – the Bank of Canada is independent from government (and it should be shocking that the Conservatives are suggesting otherwise given the history of the independence of the central bank in this country), quantitative easing is not “printing money,” and given that a year ago, in the early days of the pandemic, we were facing deflation as a country, an expansionary monetary policy was the right move to make. We’re still in need of stimulus, because the recovery has been so uneven, but the Bank of Canada knows this, because it’s their job.

https://twitter.com/trevortombe/status/1405250437838610432

With this in mind, it was no surprise yesterday that when the inflation figures were reported, the fact that it clocked in at an annualized 3.6% had the Conservatives, and Erin O’Toole in particular, trying to make hay of this – and media outlets didn’t help with their headlines that this was the highest rate in a decade, without putting that in proper context. Now, part of that is the base effect of last year’s massive drop, which is going to take time to work itself out in the data; but it’s also in part based on factors from right now, the most important of which is housing prices, which have skyrocketed as demand has outstripped supply. None of this is a surprise, and none of this has anything to do with the size of the federal deficit or the Bank of Canada’s quantitative easing, and yet that is the narrative being painted. It didn’t help that O’Toole’s examples lacked any logical consistency, such as blaming increases in post-secondary education on the federal government, when that’s a provincial jurisdiction. Not that truth matters.

https://twitter.com/MikePMoffatt/status/1405152487821168642

Compounding this, however, is the completely irresponsible way in which this was being spun by shows like Power & Politics, where the framing was “the cost of everything is going up!” followed by asking panellists if the government should do something about it. And to their credit, most of those panellists said no, leave it for the Bank of Canada, but the fact that the host kept torqueing this notion about “prices are rising!” and trying to constantly get people to say something – anything – inflammatory about inflation, was not only irresponsible, but shows actual contempt for proper economics reporting by the gods damned CBC. They don’t care about actual information or reasonable discussion, they want the false balance of opposed partisans battling it out, and the “drama” that creates. It does such a disservice to everyone that it amazes me that they can get away with it.

Good reads:

  • Having received (another) negative COVID test, the PM was able to leave hotel quarantine to head for at-home quarantine for the next two weeks.
  • The Canadian Press provides a fact-check to Vladimir Putin’s claim that Canada is the second-leading source of cyberattacks.
  • The UNDRIP bill has passed the Senate, and is awaiting royal assent.
  • The Commons Speaker found a prima facie breach of privilege on the unredacted Winnipeg Lab firing documents, and a motion for a contempt charge is in the works.
  • Partisan antics on all sides mean that the defence committee’s reports on the Vance allegations and service members’ mental health may not get tabled.
  • The Bloc’s Supply Day motion on provinces’ ability to unilaterally amend their constitutions passed, with Jody Wilson-Raybould and Derek Sloan voting against.
  • Here is the transcript of NDP MP Mumilaaq Qaqqau’s “farewell” address to the House of Commons, as she doesn’t plan to run again (plus some reaction to it).
  • Annamie Paul survived the attempt to call a leadership review, but she immediately went and attacked Justin Trudeau when the calls are coming from inside the house.
  • Jason Kenney is denying that he supported a niqab ban when he was in Cabinet, in spite of voluminous receipts and proof that yes he did indeed support it.
  • Kady O’Malley’s Process Nerd column previews the options the Conservatives have put forward for their final Supply Day of the sitting.
  • Robert Hiltz joins the chorus of those of us calling for Sajjan’s resignation.

Odds and ends:

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