Philip Jong

In June 2022, Canada experienced the highest inflation rate recorded in almost four decades. The pervasive inflation has resulted in higher prices of almost all consumer goods and services including food, gas, and rental. It mirrored the inflation surge also observed in many other countries around the world since last year. Economists theorized that the current inflation was caused by a combination of global supply shortages secondary to manufacturing slowdowns during the ongoing COVID-19 pandemic, volatility in the international energy (particularly oil) market, geopolitical instability from war in Eastern Europe, and even a paradoxical consumer demand increase as the world emerges from a protracted period of economic downturn and high unemployment due to the pandemic. So far, counter-inflationary monetary policies taken by the Government of Canada have not been sufficient to ease the varying economic pressures that are driving up the inflation rate. Not surprisingly, low-income, underprivileged, and marginalized populations have been impacted the greatest by the current inflation. As a Canadian, I am shocked by the rise in the cost of living over the past months which I have not witnessed before in my adult life. Aggressive economic measures are needed immediately to quell the perfect storm that is now fueling the inflation crisis in Canada.

Rightly or wrongly, the prowess of a country is often measured by its financial wealth. In today’s global economy, the strength of a nation’s currency against another is a common source of pride for its people. Even the Canadian dollar is a descendant of the Canadian pound (in use until 1871) which has its roots in the mighty British pound that has long been a symbol of British colonialism.

Last month, Canadians saw the rise of the Canadian dollar that momentarily reached parity against the US dollar (and even exceeded it) for the first time in 31 years. While this was largely attributed to a weakening of the US economy rather than a strengthening of our own, many Canadians saw the opportunity to proudly proclaim that this was the proof of our financial independence as a nation from the dominating US. As an average consumer, I must admit that it is more of a source to boast my national pride for my country than a real monetary growth in my own wealth. For a brief moment, at least, I can proudly waive my Canadian dollar (which is actually a coin now and not a bill anymore) south of the border and proclaim a win of our mighty loonie over the withering green buck!