Low-income workers, seniors, parents and renters are helped by the measures.
The Affordability Plan was outlined by the deputy prime minister.
The file photo was taken by REUTERS.
The Affordability Plan will help Canadians shoulder the rising costs of living as inflation reaches multi-decade highs, according to the deputy prime minister.
According to Freeland, a new set of measures is coming into force right now to help the Canadians who need it the most. New support for Canadians is $8.9 billion. Our affordability plan is here.
New support for workers with enhancements to the Canada Workers Benefit to give $2,400 to low-income workers will be included in the Affordability Plan. The minimum wage will be linked to inflation.
Some economists may find the new spending offensive.
In her speech, Freeland reassured the fiscal hawks. We built these measures into our last two budgets because this is new money for Canadians.
The affordability plan was part of the five-part plan to help the economy recover from the recession. The Bank of Canada's role, fiscal restraint, addressing the worker shortage and creating good jobs are part of the plan.
Freeland said that the central bank needs the help of government policy to tackle supply constraints in order to target inflation. The central bank has come under fire recently from opposition parties.
It is highly irresponsible to undermine Canada's fundamental institutions at this time of global economic and political uncertainty.
The deputy prime minister said the federal government spent an "extraordinary amount of money" to see the country through the swine flu. Canada has the lowest debt-to-GDP ratio among its G7 peers, according to Freeland.
Freeland wants to see the debt-to-GDP ratio continue to decline. We need to pay down our debt. I committed to a review and reduction of government spending after tabling the budget in April.
Spending in the April 7 budget was less than expected due to the huge response to the Pandemic. The government was forced to cancel its ultra-long bond issuance last week due to the improving fiscal balance sheets.
The government plans to invest in immigration, skills and training, affordable child care, and affordable housing in order to address the worker shortage. Ensuring there are enough good jobs for middle-class Canadians is part of the federal government's plan.
David Dodge, the former Bank of Canada governor, said this week that achieving a soft landing with the least amount of pain to the Canadian economy will be a challenge. Freeland acknowledged that a soft landing is not certain.
Two years of remarkable turbulence have been experienced by Freeland. We need to land the plane. There is no guarantee of a soft landing. Canada is the best place in the world to get one.
The email address is shughes@postmedia.
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