To-do list to control inflation
The federal government is realizing that some of its policies contribute to inflation. With the rates increasing since April 2022, it’s been like a car with two drivers, one pushing the brake, the other the accelerator. Now, the drivers are starting to understand the damage this is causing. They’ve decided to cut spending on road and rail projects, and while transportation improvements can be beneficial, not all projects add value.
There are other steps the government could take. One would be immediate reduction in immigration, stop capping prices, and moderate the energy transition. Producing budget surpluses going forward, reforming taxation, and nominating a minimum range for interest rates would also be effective in controlling inflation.
Reforming federal-state relations, withdrawing the ‘Closing the Loopholes’ bill, and reforming environmental protection laws are additional steps that could help with the current inflationary pressure. These changes are needed to control rising costs and help avoid further damage to the economy.