Dear Justin Trudeau: Supply Chains Aren't To Blame For Inflation. You Are.

Dear Justin Trudeau,


You were recently asked about your government’s response to the inflation crisis; I just listened to your reply on Rebel News. I am very glad those journalists exist because even the Lord whom you serve (even if you don’t realize it) knows that CBC only speaks what you want them to say.


Either way, here’s how you dodged the question—you replied,


“The inflation challenge that the world is facing right now is a global challenge linked to obviously this pandemic, and the path out of it, but also linked to significant disruptions in supply chains around the world. That’s why we’re continuing to work to be there to support Canadians.”*


The problem, Mr. Trudeau, is that it seems you’re confused about economic principles. Your answer implies you believe that high prices (supposedly being driven up by a lack of supply) are equivalent to inflation.


They are not.


You are conflating high prices with monetary inflation; doing so is like conflating a sneeze with a cold. High prices are a consequence of inflation, just like a sneeze can be a consequence of a cold.


You see, if prices are rising because there is a disruption in the supply chain (which you had a hand in facilitating, by the way. You printed astonishing amounts of money, threw it at us like candy from a piñata, and made us nominally richer, which facilitated an artificial increase in demand that the market wouldn’t have allowed.) then it isn’t inflation at all! Instead, the market supply curve (the whole line I mean) shifts to the left on the supply and demand curve, and prices rise as a result.


Monetary inflation is something else entirely—it occurs when you print too much money (just as you’ve done), and business owners have to raise their prices because money is not as valuable as it was before. The only way to cure inflation is to turn off the presses, just like the only way to cure alcoholism is to stop drinking.


Either way, we are suffering. We go to our grocery stores and find the shelves are increasingly malnourished. And if food is on the shelves, we dread discovering the price at the till. First, you and Tiff Macklem lied and said “inflation is short-lived,” then it was “transitory,” and now, “it’s the market’s fault.” Why should we believe a thing you say?


Oh, and by the way, did you know we omit the price of homes in Canada’s consumer price index?** Can you imagine what the inflation numbers would be if they included them?? Maybe something closer to reality.


Prices are soaring into the stratosphere while we barely keep our heads above water. But it’s no worries, is it? Because, like you said in that interview, “We [The Liberal Government] have Canadians' backs.”


Maybe, but there’s a dagger in your hand stabbing all of us with betrayal.



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* https://twitter.com/rebelnewsonline/status/1483870941700571143


** https://www150.statcan.gc.ca/n1/pub/62f0014m/62f0014m2017001-eng.htm

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