From the late 1960s to the early 1980s, more unionised workforces from Europe to Aotearoa New Zealand fought hard to keep wages abreast with inflation. But it’s unlikely that could happen now.
Putting money in the pockets of Canadians most in need via the grocery rebate or a guaranteed basic income has myriad benefits for people, families and the economy.
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Initiatives like the federal government’s new grocery rebate are only a small step towards ending food insecurity in Canada. A broader guaranteed basic income is long overdue.
Inching toward a recession .. but what kind?
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The Fed’s campaign of rate hikes is showing more signs of having the intended effect of slowing the economy – but that may be bad news for those who lose their jobs or have a harder time finding one.
The federal government’s grocery rebate will provide one-time monetary relief to 11 million low- and modest-income Canadians and families.
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Peter Martin, Crawford School of Public Policy, Australian National University
More than one million borrowers are set to come off ultra-low fixed mortgage rates this year and next, meaning the full effect of the ten rate rises to date is yet to be felt.
The high cost of groceries is exacerbating food insecurity in Canada, but the federal government’s new ‘grocery rebate’ doesn’t go far enough to help.
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Raising rates to fight inflation involves a time lag so current efforts to bring down prices won’t start having an impact until the next election is approaching.
A recession-free landing for the Fed may be harder now.
AP Photo/Alex Brandon
Geranda Notten, L’Université d’Ottawa/University of Ottawa
Canada’s official poverty measure only focuses on income and ignores other important factors, meaning there are millions of Canadians living in poverty that are ignored by the measure.
Fed chair Jerome Powell opted for a cautious approach on rates.
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The Fed raised rates by a quarter-point – less aggressive than had been expected before the current banking crisis, but signaling inflation is still its focus.
Decision time: Jerome Powell, chair of the Federal Reserve.
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The latest consumer prices report shows cost of living is still rising far above the Fed’s target. But don’t expect monetary policymakers to aggressively hike rates.