Canadians were hit with another gut punch this week after Bank of Canada Governor Tiff Macklem admitted the country’s economy is deteriorating and warned citizens to prepare for a “lower standard of living.”
During a Wednesday update in which Macklem also slashed Canada’s interest rate to 2.25 percent, the central bank chief effectively told working families that the days of prosperity are over.
“What’s most concerning is, unless we change some other things, our standard of living as a country, as Canadians, is going to be lower than it otherwise would have been,” Macklem told reporters.
“Unless something changes, our incomes will be lower than they otherwise would be.”
The bleak admission marks one of the clearest warnings yet that years of reckless government spending, high taxation, and runaway inflation under Liberal leadership have pushed the Canadian economy to the brink.
“Not Just a Cyclical Downturn”
Macklem tried to soften the blow but conceded that what Canada is facing “is not just a cyclical downturn.”
Pressed by reporters to explain what that meant, he pointed the finger at U.S. protectionist policies, including tariffs designed to protect American manufacturing.
However, analysts say Canada’s internal policies are the real culprit.
“Part of it is structural,” Macklem said, adding:
“The U.S. has swerved towards protectionism.”
“It is harder to do business with the United States.
“That has destroyed some of the capacity in this country. It’s also adding costs.”
He stopped short of uttering the word “recession” but acknowledged that growth is now “pretty close to zero.”
Liberal Overspending and Inflation Spiral
While Macklem blamed U.S. trade barriers, the economic reality is that Canada’s financial crisis has been years in the making.
It was fueled by Liberal Party overspending and money printing since 2015, first under Justin Trudeau and now under Prime Minister Mark Carney.
Inflation continues to rage at decades-high levels, eating away at wages and savings, while taxpayers are being crushed by some of the highest tax burdens in the world.
Canadian families now spend, on average, 42 percent of their income on taxes, which is more than they spend on food and shelter combined.
Meanwhile, the government continues to funnel taxpayer money overseas and into ideological pet projects, even admitting that funding Ukraine comes directly at “taxpayers’ expense.”
Millions More for “Gender” and “Pride” Spending
Carney has doubled down on his progressive agenda.
Earlier this week, he announced that his upcoming 2025 budget will include millions more for “SLGBTQI+ communities,” “gender equality,” and “pride safety” initiatives.
The radical plans are all funded by Canadian taxpayers, many of whom are struggling to pay their grocery bills.
The Canadian Taxpayers Federation (CTF) blasted the Carney government for wasting $13 million since 2022 on frivolous promotional items such as “climate change card games,” “laser pens and flying saucers,” and “bamboo toothbrushes.”
“Lower Living Standards”
For many, Macklem’s words confirm what everyday Canadians already feel as the standard of living is collapsing, and the political class doesn’t seem to care.
As inflation soars, taxes rise, and real wages fall, the Bank of Canada’s message is clear: citizens should simply “accept less” while Ottawa continues to spend more.
With growth at zero and the cost of living skyrocketing, it’s little wonder so many Canadians are asking whether this economic decline was inevitable or engineered.
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