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inflation

Thursday April 10, 2025

April 10, 2025 by Graeme MacKay

Trump's aggressive trade policies, particularly against China, create risks and uncertainties in an already fragile global economy.

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday April 10, 2025 (Also, Luremburger Wort)

The Risks of Trump’s Trade Policy in Today’s World

Trump's policies have redefined global trade dynamics, prompting allies like Canada to seek new economic opportunities beyond U.S. dependence.

April 5, 2025

In a world already facing challenges from economic recovery and international tensions, President Trump’s trade policies are adding more uncertainty and risk. His recent move to pause tariffs on some countries while sharply increasing them on China highlights a short-sighted strategy that could have long-lasting negative effects.

At a time when people are still recovering from the economic impacts of the pandemic, Trump’s reliance on tariffs to negotiate trade deals often makes everyday goods more expensive for American families. This isn’t just about protecting jobs; it’s about making life harder for those who are already struggling with rising costs.

Markets thrive on stability, but Trump’s unpredictable trade decisions create confusion and insecurity. While there may be some immediate benefits, like temporary stock market boosts, the constant changes can undermine long-term economic growth when the global economy is already on shaky ground.

News: Tracking Trump’s On-Again, Off-Again Tariffs and the Global Trade War

Trump's vision of a manufacturing renaissance risks creating a mirage of prosperity, as low-skilled jobs return amidst automation, isolating the U.S. from global trade benefits.

April 4, 2025

Taking a tough stance on China with such high tariffs might seem strong, but it risks sparking a trade war that can hurt both countries and strain relationships with other trading partners. Instead of leading, the U.S. under Trump’s policies is encouraging other countries to find new partners and solutions that don’t rely on American markets.

Trump’s approach also ignores how interconnected our world is. Trade isn’t a win-lose situation; it’s about cooperation and mutual benefit. By treating it like a competition where only one side can succeed, Trump fosters unnecessary conflict and retaliation, which only harms everyone involved.

In short, Trump’s trade policies are not just misguided—they’re risky for the U.S. and the world. As we face ongoing global challenges, it’s crucial to work collaboratively and focus on building strong, reliable trade relationships. The stakes are too high to keep moving in a direction filled with uncertainty and potential conflict. The global community and American citizens deserve a more stable and cooperative approach.


A humiliating U-Turn for Trump, and he has no clue

It’s been quite the rollercoaster ride with Trump’s trade moves, hasn’t it? The “America First” idea sounded like a bold step, but it’s turned into a chaotic spectacle, wiping out trillions from the global economy and leaving everyone in a state of panic. His sudden U-turn is like watching a reality show where the plot twists are as predictable as they are bewildering.

Trust in Trump? According to his world view, the global trade system—the very one the U.S. has nurtured for decades—has, according to the President, somehow morphed into a corrupt scheme designed to rip off America. It’s like he’s convinced the world is full of scoundrels, with nations just waiting to take advantage of the U.S. His slights against individual countries, like calling Canada nasty or suggesting it and Greenland should be part of the U.S., come across as bizarre and out of touch.

It’s as if he believes that many of these countries owe their existence to the U.S. and its generosity, which just adds another layer to this perplexing narrative. And yet, here we are, not even 100 days into his presidency, and we’re already dealing with the fallout of a spectacular and escalating trade war with China. The consequences could reach far beyond trade, potentially destabilizing things even more.

It’s hard not to feel like we’re all just holding on because of one man’s lunacy, hoping for some stability to return. Fun Fact! As of April 10, 2025, it’s been 3,585 days since Donald Trump announced his candidacy for the presidency on that memorable escalator ride on June 16, 2015. Not a day has gone by without a single moment without Trump. Time flies, doesn’t it?

Check out my making-of animated editorial cartoon for April 10, 2025, below! If you haven’t yet, please subscribe to my Substack newsletter, where I share weekly editorial cartoons every Saturday morning. Substack is a crucial platform for me amidst the uncertainties of being a staff cartoonist, especially given recent layoffs and newspaper closures affecting our field. As long as I hold my position, subscriptions will remain free. Thank you for your support! This “note” helps craft my weekly posts and showcases animated versions of my cartoons. Enjoy!

Trump Tariff Backfire | April 10, 2025:  https://youtu.be/PM8a_nvaDcM

– The Graeme Gallery

Read on Substack

Posted in: USA Tagged: 2025-07, China, conflict, consumer, cooperation, Donald Trump, Economy, Global, inflation, markets, partners, risks, stability, Substack, tariffs, Trade, uncertainty

The Cost of Living Crisis as we’ve known it

December 28, 2024 by Graeme MacKay

The Cost of Living Crisis As We Knew it in 2024 | December 28, 2024 | Substack Newsletter

Posted to the Hamilton Spectator, December 28, 2024

These editorial cartoons over the past few years highlight the tough times many Canadians have and are currently facing with rising living costs, especially when it comes to food. They point out how prices for everyday items, like groceries and butter, have skyrocketed, making it harder for families to make ends meet. The increase in food bank use shows the growing need for support as government action seems slow.

While some retailers are trying to improve practices, there’s a sense that more needs to be done to tackle the bigger problems affecting people’s wallets. Short-term solutions, like HST holidays and rebates, might provide temporary relief, but they don’t address the root issues. What’s truly needed are long-term remedies that ensure sustainable affordability and economic stability for all Canadians. Overall, it’s a call for better solutions to help everyone cope with these financial challenges in a meaningful way.

 

Friday December 10, 2021: We’ll all be paying a lot more for food next year, says Canada’s Food Price Report. Sky-high food prices were one of many negative impacts that Canadians felt during the pandemic-plagued year of 2021. And a new report suggests that problem is only going to get worse next year.

 

Thursday September 29, 2022: Butter is our lifeblood, our saving grace. When all else fails, butter is there for us to spread on toast, toss into mashed potatoes, shower on our movie popcorn, or use to whip up a cake. But this essential ingredient is starting to cost a pretty penny, and right before its biggest time to shine, the holiday baking season.

 

Thursday April 13, 2023: Move over, Tiffany’s! The hottest place to shop for precious commodities is now your local supermarket. With prices soaring to new heights, Canadians are flocking to grocery chains with the same excitement and anticipation as shopping for gold, diamonds, and expensive gems in a jewelry store.

 

Wednesday August 2, 2023: Inflation has been a significant concern for the Canadian economy, impacting all aspects of daily life, with grocery prices being hit the hardest. In recent months, the cost of living has surged by almost six percent, while grocery prices have soared nearly double that pace, leaving consumers feeling the pinch. As prices rise, the profits of big grocery chains have reached record highs, further exacerbating the disparity between their financial success and the plight of their low-wage workers.

 

Thursday October 26, 2023: Yesterday’s announcements highlight the challenges of high inflation and housing costs in Canada. The report on food banks shows the growing need for affordable options, while the Bank of Canada’s focus on managing inflation could lead to rate hikes. It’s clear that addressing affordability, inflation, and social support is crucial.

 

Tuesday March 5, 2024: Despite falling inflation, the Bank of Canada is likely to keep interest rates steady, raising questions about an immediate drop in borrowing costs.

 

Tuesday March 11, 2024: Loud budgeting emerges as a powerful societal roar against corporate exploitation, stagnant wages, and governmental financial burdens, empowering individuals to reclaim control over their finances and challenge systemic inequities.

 

Tuesday April 9, 2024: Today’s youth face a profound struggle with financial insecurity and societal pressures, hindering their ability to engage amid a pervasive cost of living crisis.

 

Thursday April 11, 2024: The decision by the Bank of Canada to maintain interest rates at 5% underscores the economic struggles faced by middle-income families, who play a vital role in driving economic activity but bear the brunt of stagnant wages, rising costs of living, and financial pressures exacerbated by high borrowing costs.

 

Saturday May 18, 2024: The recent announcement that Loblaw Companies Ltd. and other major retailers are ready to sign on to Canada’s grocery code of conduct is being presented as a significant step toward fairer practices within the grocery supply chain. However, this development is unlikely to bring about the substantial changes needed to address the deeper issues affecting the industry and consumers.

 

Friday May 31, 2024: Innovative leadership is essential to address Canada’s inflation crisis, bridging the gap between optimistic official statistics and the harsh financial realities many Canadians face.

 

Thursday June 6, 2024: Amidst the Bank of Canada’s rate cuts offering borrowers a glimmer of hope, the rollercoaster journey of economic recovery is shadowed by the relentless challenge of rising living costs.

 

Friday September 13, 2024: The rise in food bank usage highlights government inaction on poverty, housing, and social services, and food banks cannot continue to serve as a substitute for systemic reform

 

Saturday October 12, 2024: Despite rising grocery prices, Thanksgiving 2024 offers an opportunity to reflect on the privileges many Canadians still enjoy, like access to affordable food and relative safety, even as global challenges intensify.

Hello, friends!
As 2024 winds down, I’m excited to share my editorial cartoons through The Graeme Gallery, my Substack newsletter inspired by a cherished Hamilton Spectator tradition. For 28 years, I’ve used cartoons to recap the year’s big stories—locally and globally—with humour and insight.
These annual retrospectives are the inspiration for what I now offer weekly on Substack: newsletters delivered every Saturday, summarizing the week’s events through my cartoons. Subscriptions are free while I remain a staff cartoonist with legacy media.
This year-end series kicks off December 26 with four special posts:
* Dec. 26: Ontario’s key moments.
* Dec. 27: Canada’s ups and downs.
* Dec. 28: The cost-of-living crisis.
* Dec. 29: Donald Trump’s 2024 antics.
Thank you to the 100+ subscribers who’ve already joined—your support keeps this art form alive. Please spread the word, and let’s celebrate satire together.
Happy holidays and here’s to a bright 2025! —Graeme

Please Subscribe. It’s free!

Posted in: Business, Canada, International Tagged: 2024-23, affordability, affordability crisis, cost of living, cost of living crisis, inflation

Saturday December 7, 2024

December 7, 2024 by Graeme MacKay
Rising food prices are the result of complex, interrelated global factors, and partisan blame games oversimplify the issue, preventing constructive solutions.

December 7, 2024

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday December 7, 2024

The Futility of the Food Price Blame Game

Despite rising grocery prices, Thanksgiving 2024 offers an opportunity to reflect on the privileges many Canadians still enjoy, like access to affordable food and relative safety, even as global challenges intensify.

October 12, 2024

Food is vital for nourishment, family gatherings, and cultural traditions. However, rising food prices often lead to blame games that oversimplify the issue and ignore the complex factors involved.

Canada’s Food Price Report predicts grocery bills will increase by 3–5% in 2025, adding about $800 per year for a family of four. Instead of constructive discussions, the debate focuses on accusations about carbon taxes, corporate greed, climate policies, and the Canadian dollar’s value.

Some blame the carbon tax for rising costs, claiming it heavily impacts farmers and consumers. While it does play a role, experts say it only contributes a small fraction to food prices, overshadowed by global feed prices, droughts, and supply chain issues. Conversely, accusations against corporations for price hikes often overlook larger systemic problems, such as disease outbreaks and extreme weather.

News: Food prices could jump by up to 5% in 2025, and researchers say loonie is partly to blame

The recent announcement that Loblaw Companies Ltd. and other major retailers are ready to sign on to Canada's grocery code of conduct is being presented as a significant step toward fairer practices within the grocery supply chain. However, this development is unlikely to bring about the substantial changes needed to address the deeper issues affecting the industry and consumers.

May 18, 2024

The rising cost of food results from multiple factors. Climate change causes severe weather disruptions, a weak Canadian dollar increases import costs, and labor shortages further complicate matters. It’s unfair to pin these challenges on a single policy or entity.

For instance, beef prices rose by 9.2% in 2024 due to global droughts affecting cattle herds. Vegetable prices also reflect production challenges related to extreme weather.

Solutions like subsidizing farmers can help but may favour larger operations over smaller farms. Quick political fixes, such as cutting carbon taxes or taxing corporations, oversimplify the issue and ignore its complexities.

September 29, 2022

This blame game undermines trust in more thoughtful solutions, leaving citizens confused and policymakers paralyzed. We need to address rising food costs with a nuanced approach—investing in climate-resilient agriculture, supporting local production, and promoting pricing transparency without vilifying all businesses.

Improving public discourse is essential; citizens deserve clear explanations rather than partisan rhetoric. Food is fundamental, and reducing it to a political tool harms everyone, especially those struggling to afford it. We need collaborative, thoughtful solutions rather than slogans and scapegoating. If we don’t move beyond the blame game, we risk perpetuating a cycle of inaction.


Here’s a little something to go along with my latest editorial cartoon—because honestly, what is it about rising food prices that brings out every self-proclaimed expert wielding their magic wand of “obvious” solutions? This phenomenon goes hand in hand with the social media cesspool, where armchair analysts feel compelled to weigh in on every complex issue with their wingbat theories, whether it’s immunology, the constitution, or Middle East peace.

Take food prices, for example. A casual scroll through the comment sections under coverage of The Food Price Report—you know, the one predicting Canadians will see meat and vegetable prices jump three to five percent in 2025—will make your head spin. Everyone’s suddenly an expert on global supply chains, fiscal policy, and the exact carbon footprint of a cucumber. Some blame climate initiatives like the carbon tax for “starving us,” while others point the finger at “greedy corporations” pocketing obscene profits. The shouting match unfolds like a digital food fight, with misinformation flying in every direction.

Meanwhile, the reality of why food prices rise is painfully complex: droughts and floods wiping out crops, the weak Canadian dollar making imports costlier, labour shortages, and yes, even some corporate profiteering. But you’d never know it from the partisan bickering that drowns out any meaningful discussion.

So here’s my cartoon to poke fun at the absurdity of it all. Because while the blame game is easy, addressing systemic issues? That’s the part that takes real work. Let me know your thoughts—or share your own favourite “expert take” you’ve seen floating around. I could use the laugh!

Please subscribe to my Substack newsletter, if you haven’t already. Posts come out every Friday as I summarize the week that was in my editorial cartoons. What you’re reading now is regarded as a “note”, which is used to help compose my weekly posts and showcase the animated versions of my daily editorial cartoons. Subscriptions will always be free – as long as my position remains as a staff editorial cartoonist. Thanks.

Here’s the making-of clip of my cartoon in the Saturday December 7 2024 edition of the Hamilton Spectator. Sound on and volume up, please…

– The Graeme Gallery

Read on Substack

Posted in: Canada Tagged: 2024-22, Canada, carbon tax, corporations, food, food fight, homelessness, inflation, partisanship, security, Substack

Thursday November 7, 2024

November 7, 2024 by Graeme MacKay

Trump's return to power promises sweeping change and a "Golden Age," but risks deepening divisions and geopolitical uncertainty under the weight of great expectations.

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday November 7, 2024

Great Expectations and the Greatest Comeback: A Golden Age or a Gilded Illusion?

November 9, 2016 (The morning after)

The morning after Donald Trump’s election to a second term has cast a stark light across the United States and the globe. Some see it as “The Greatest Comeback of All Time”—an extraordinary return to power reminiscent of political resurrections in history. Yet, for many, this resurgence is anything but triumphant. Half the nation, joined by allies and observers worldwide, is awakening to a wave of anxiety, bracing for a period they fear will be marked by retaliation, revenge, and deepening resentment.

Trump’s campaign promises were as sweeping as they were blunt, pledging to right perceived wrongs and remake American society in line with a vision that blends nostalgia, populism, and unbridled assertiveness. Central to this vision is the promise of a “Golden Age,” echoing Reagan-era optimism, polished with the now-familiar rallying cry: “Make America Great Again.” Yet, beneath these gilded promises, questions linger about who will reap the benefits of this promised era and at what cost to unity, both domestically and abroad.

In 2008, Barack Obama inspired hope with promises of change, a message so resonant it propelled him to the presidency amidst great expectations. However, the realities of governance tempered that vision; progress met resistance, and incremental wins fell short of transformative dreams for many. Today, Trump enters his second term buoyed by similar, albeit more fervent, expectations. His supporters believe he returns armed with sharper tools and lessons learned from a first term hampered by bureaucracy and resistance.

Analysis: Trump policies: Seven things he says he will do as president

August 3, 2023

The central promise this time is not just to continue the work of his prior administration but to expand it—rapidly and unapologetically. Trump, who once lamented that “the system is rigged,” now seems intent on navigating, if not overriding, that very system. His agenda includes sweeping immigration crackdowns, aggressive economic measures like massive tariffs, deregulation, and cultural interventions that target education and reproductive rights. Such ambitions signal a fast-moving administration, determined to mold the U.S. in a new, yet familiar, image.

However, for a significant portion of the population, this victory is seen not as a dawn of renewed greatness but as an omen of retributive governance. Trump’s rhetoric has long hinted at payback, particularly against political rivals and dissenting voices. The concern now is how this posture will translate into policy, and whether the U.S. will see not just a rollback of progressive measures but an intensified campaign to reshape institutions and norms with loyalty tests and ideological litmus exams. For those on the other side of the aisle, this raises fears of marginalization and the erosion of democratic safeguards.

The convergence of Elon Musk’s influence over U.S. elections, Donald Trump’s authoritarian ambitions, and Vladimir Putin’s geopolitical agenda feels eerily like the unfolding of a real-life James Bond thriller, with democracy and global security hanging in the balance.

October 26, 2024

Trump’s pledge to end the war in Ukraine on “day one” stands as a prime example of the blurred lines between bold promise and ominous risk. The implications are severe; an abrupt shift in U.S. policy that undercuts Ukraine could embolden Russia and destabilize Europe. What Trump touts as a commitment to peace may be seen by allies as a concession that sacrifices global security for expedient resolution. The shadow of geopolitical power games looms large, and the prospect of a win for Putin—a move that reshapes alliances and recalibrates NATO’s strategic calculus—adds a layer of unpredictability to what follows.

What remains to be seen is whether Trump’s second term can genuinely deliver a “Golden Age” or if the promise is a veneer masking deep divisions and selective gains. The reality of Trump’s platform underscores that this “greatness” is likely to be exclusionary. Proposals to gut reproductive rights, restrict educational content, and shift civil rights enforcement are poised to benefit certain demographics while alienating others. The stark contrast between vision and application—between promise and who actually profits—cannot be ignored.

Analysis: The Trump agenda: Here’s what to expect from his second term

March 11, 2016

Much like Obama’s experience with sky-high expectations tempered by legislative gridlock and compromise, Trump’s anticipated bulldozing of policy may meet roadblocks of its own. The judiciary, political opposition, and international backlash stand as potential checks on his sweeping agenda. Yet, this time, the fear is less about gridlock and more about overreach: policies that accelerate not just change but potential rupture.

As America stands at this crossroads, citizens and lawmakers alike will grapple with what it means to navigate great expectations in a deeply polarized landscape. If Trump’s promises materialize without spiralling into retaliation-fuelled governance, he might indeed build an era marked by notable economic and structural shifts. However, if his actions inflame divisions and fuel selective prosperity, history may remember this as a gilded illusion rather than a Golden Age—a period where “greatness” was pursued but at a cost that left the nation more fractured than before.

The stakes are high, not just for America but for the world. Whether this moment will be a story of reclaimed glory or a cautionary tale of towering expectations met with turbulent outcomes depends on how the Trump administration chooses to wield its renewed mandate—and whether America, in all its complexity, can navigate the path ahead with resilience and unity.


Saturday Night Live kicked off with Maya Rudolph’s always-fun impression of Kamala Harris. She pulled the old “mirror” bit with the real Kamala, who gamely played along. It was a funny, upbeat moment as the two Kamalas joked about the name Kamala, and it’s hard to imagine anyone but a humuorless sourpuss not cracking a smile. A rare light moment, and maybe one of the last we’ll see as the 2024 campaign winds down.

Of the two candidates, Harris clearly enjoyed herself more during the race. She danced, laughed, and ran on positivity—a sharp contrast to her aggrieved opponent, Donald Trump. Sure, surviving two assassination attempts would shake anyone’s spirits, but Kamala’s joy shone through, making her campaign infectious in the best way.

Now that power is on its way to changing hands, it’s the moment for editorial cartoonists to turn our pens toward the victors. At least, that’s how it’s supposed to work in this business, if we’re doing our job right. Trump’s win, of course, means another four years of potential material. And as a Canadian cartoonist, I’ll admit I have the freedom to look away and focus on homegrown issues—but I feel for my American friends in the field who won’t get that break from Trump’s daily drama.

One silver lining, though, is that this time, the people have spoken, and they were actually heard—loud and clear. After years of election skepticism and doubts cast on the process, this vote feels settled, with no lingering conspiracy theories muddying the waters. It’s a crucial reminder that democracy is alive, even when the results don’t please everyone.

And while it’s tempting to dump on any winner after a hotly contested election, this victory—however divisive—still reflects the people’s voice. I like to give incoming winners, even Trump a bit of a break from the ridicule with a view to an election being more a reflection of the will of the voters and less about the candidate. Some are calling it “The Greatest Comeback of All Time,” and while that’s debatable, it’s fair to say it’s one for the history books. Right now, Trump’s at the peak of his return, and for one day, at least, his critics can take a breather. There’s a lot going on closer to home to pick apart in the meantime. With Trump there’ll be plenty to pick apart soon enough.

– The Graeme Gallery

Read on Substack

 

Posted in: Uncategorized Tagged: 2024-20, border crisis, division, Donald Trump, election, four horsemen of the apocalypse, golden age, inflation, Substack, USA, war

Thursday October 24, 2024

October 24, 2024 by Graeme MacKay

The Bank of Canada's interest rate cut offers brief relief, but Canada's deeper economic challenges—stagnant productivity, population pressures, and weak growth—keep the country stuck under stormy skies.

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday October 24, 2024

Brief Ray of Sunlight in Canada’s Stormy Economic Sky

June 6, 2024

Canada’s economy feels a lot like a rainy autumn day where, just as the clouds momentarily part to let in a sliver of sunlight, the dark skies quickly swallow it again. The Bank of Canada’s recent interest rate cuts are that fleeting patch of blue—a welcome break for mortgage holders and consumers facing high borrowing costs. But the broader economic forecast remains stormy, with clouds of weak productivity, strained public services, and a widening prosperity gap between Canada and its peers gathering overhead.

The temporary relief from interest rates being lowered offers some households a reprieve, much like the sun warming your face just long enough for you to think, maybe the worst is over. But that moment of optimism is short-lived when you realize the downpour hasn’t stopped—it’s just getting started. Canada’s structural problems—stagnant GDP per capita, high immigration without sufficient infrastructure, and sluggish business investment—continue to drench any hope for sustained economic growth.

News: Bank of Canada cuts its key interest rate by a half-point to 3.75%

Despite falling inflation, the Bank of Canada is likely to keep interest rates steady, raising questions about an immediate drop in borrowing costs.

March 5, 2024

Despite the IMF projecting 1.3% growth in 2024 and better numbers in 2025, these figures barely keep pace with Canada’s population boom. The pie may grow a little, but the extra mouths at the table are taking bigger bites. Meanwhile, across the border, America’s economic engine is humming at full throttle, widening the wealth gap between the two countries to levels unseen in decades. Australia and the UK are pulling ahead, too, leaving Canadians wondering how a once-wealthy nation ended up falling behind even in the pack of its Commonwealth cousins.

To some, it feels like Canada’s economic ship is springing leaks faster than we can plug them, weighed down by interprovincial trade barriers, rising taxes, and regulatory red tape. Meanwhile, businesses are keeping billions in capital idle like passengers clutching lifeboats, unwilling to dive in and invest under such uncertain conditions. And the government, focused more on redistributing wealth than creating it, continues to prioritize social spending over pro-growth policies that could set the country on a more prosperous course.

Analysis: Tepid economic growth, combined with a population boom, has hit Canada’s standing among rich countries

May 2, 2020

The sun may peek out from time to time—like this rate cut—but until deeper reforms address the underlying structural problems, it’s clear we are sailing into rough waters. Canada can’t simply count on the clouds to part. The country must act decisively to boost productivity, ease immigration pressures, and attract investment—before we find ourselves stranded in an economic fog we can’t navigate out of.

Because if there’s one thing worse than a storm, it’s getting so used to the clouds that you forget what clear skies look like. (AI)


Catch the animated version of this cartoon posted as a note to my *all new* and experimental Substack Page. It’s at the early experimental stage (at the time of it’s posting,) and presented in the form of notes as I figure out how to integrate it into my daily routine. Find out what’s swirling in my head as I come up with my ideas.  It’s free and will continue to be, as will this carefully curated WordPress website which I’ve maintained obediently since 2012… until the traditional structure that has sustained me a livelihood collapses on top of me as it has for so many of my peers. Please take a look, and if you want to continue following/subscribe to my work, please subscribe, and thank you!

In Canada, today’s interest rate cut from the Bank of Canada—a pretty significant half-point reduction—offers a glimmer of hope amid an otherwise turbulent economic landscape. A family straddles on the roof of their home during a flood, taking respite from the storm as Tiff Macklem unveils the “Rate Cut” document. Around them swirls the rising tides and debris of debt, wreckage of lost innovation, stagnant wages, and soaring living costs, a stark reminder that this relief is temporary and the underlying issues still loom ominously beneath the surface.

A curious irony arises when we look southward to the United States. Despite robust economic growth, many Americans grapple with a sense of pessimism, fixating on income inequality, political instability, and inflation. Former President Trump’s exaggerated claims (aka lies) about the economy being in disarray only serve to amplify this narrative.

In contrast, many Canadians cling to the comforting illusion that our economy is stable, even as GDP per capita declines and our living standards lag behind not only the U.S. but also countries like Australia and the UK. This disconnect underscores a crucial point: Canadians may be too quick to celebrate fleeting moments of good news, such as interest rate cuts, while neglecting the mounting economic challenges that surround them.

Before dismissing this perspective as aligning with Pierre Poilievre’s “everything seems broken in Canada” rhetoric, it’s essential to recognize that the economy has been trending downward for decades. Federal fiscal policies—whether under Conservative, Liberal, or Liberal/NDP leadership—have all played a role in shaping the current disappointing state of the Canadian economy compared to similarly sized nations. Sloganeering will not lift Canada out of its economic malaise, nor will a complacent status quo. Forget the adversarial bunk that makes working across the aisle to get things done for the benefit of all in the long term. Setting aside partisan politics, we must demand real solutions to steer Canada back on the right path.

 

Posted in: Canada Tagged: 2024-19, affordability, Canada, Economy, growth, inflation, innovation, interest, mortgage, storm, Substack, Tiff Macklem
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