![Affordability in Canada is at a crisis point — and politicians don't have an easy fix](https://i.cbc.ca/1.6518616.1663448146!/fileImage/httpImage/image.jpg_gen/derivatives/16x9_620/gas.jpg)
Affordability in Canada is at a crisis point — and politicians don't have an easy fix
CBC
For Canadians like Missy Anderson, the cost of living is becoming a crisis.
She's 38 years old, a mother of four, and lives in Burlington, Ont. Like many other Canadians she has been forced to make difficult choices about how she spends her money.
"It's a juggling act," she said in an interview on CBC's The House that aired Saturday. On top of the costs of feeding and caring for her children, a low-dose chemotherapy treatment to address Stage 1 cervical cancer presents another challenge for the freelance writer.
Inflation in July was up 7.6 per cent in July over the same period last year. It was the first month-to-month decline since 2021, but the cost of living is still taking a bite out of Anderson's budget — and she's hoping for help from politicians.
"They need to understand how the average Canadian is living. They offer benefits that I think they think sounds good — stuff like one-time $500 help for rent," Anderson told host Catherine Cullen.
"If you're in this area, that's not going to do a whole lot for help. That's like two trips to the grocery store."
Anderson is hoping for more help as soon as possible.
The federal government announced this week new measures that are aimed at helping with the affordability challenge, including the rental benefit Anderson describes, as well as boosted GST credits and a new dental benefit.
"These are things that will make a difference in people's lives right now, but they are sufficiently targeted that they will not contribute to increased inflation," said Prime Minister Justin Trudeau.
Opposition Leader Pierre Poilievre, however, argued the plan would "pour gasoline on the fire" of inflation. Scotiabank head of capital markets economics Derek Holt also criticized the government for shelling out more spending.
Trevor Tombe, an economist at the University of Calgary, told The House it was unlikely the recently announced measures would have a significant effect.
But he noted it might be hard to address the root problem of inflation quickly, so one of the things governments need to be honest about is "recognizing clearly and explicitly that there's not a lot that can be done in the very short term," he said.
Much of inflation is caused by global factors and high energy prices, Tombe said, on which government policies around spending or transfers can have limited impact. Rate hikes from the Bank of Canada will also take time to have an effect on inflation, Tombe noted.
![](/newspic/picid-6251999-20240613074859.jpg)
4 down, 46 to go as first batch of London, Ont.-built armoured vehicles will soon be sent to Ukraine
The first four of 50 military vehicles being built at a London, Ont., factory have rolled off the assembly line and will soon be en route to the Ukrainian army.