Wages and Inflation

For over 30 years politicians have been telling us that government spending needs to be reined in to address one economic challenge after another. Whether it is a recession, high inflation or the instability caused by Trump’s tariffs, the solution is always to strive for a “balanced budget” — even when the problem isn’t government overspending.

Inflation in Canada may be calming compared to the record highs in 2022 and 2023, but people are still struggling with the cost of living. While overall inflation increased by 2.1% on a year-over-year basis in September 2025, housing and grocery prices are rising at a significantly higher rate, the national averages being 4% for groceries and 4.8% for rent.

With every announcement from the new Liberal government, especially Budget 2025, it might be tempting to look back on the Justin Trudeau years with rose-coloured glasses. However, when we look at the progressive policies implemented by his government, it’s important that we remember that policy measures that advance workers’ rights or make society more equal don’t stem from government goodwill alone. Wins like anti-scab legislation, pharma and dental care are the results of hard-fought battles led by unions and their allies. As workers, we can never take for granted that governments will look out for our best interests.

On November 4, the new Liberal government tabled its first budget in the House of Commons. The nearly 500-page document lays out Mark Carney’s plan to supposedly “build Canada strong” in a time of profound political and economic transformation. Yet a closer look shows a short-sighted, inadequate and destructive plan that misses the mark in every area where it counts.