Canada’s Cost of Living Crisis Just Got Worse

A ballooning deficit, rising food bank use, stalled pipelines and a growing sense of economic unease—this week’s episode of Inside Politics doesn’t hold back. Host Kevin Klein is joined by Winnipeg Sun columnists Lawrence Pinsky and former Liberal MP Robert-Falcon Ouellette for a fast-paced, sharply divided discussion on Canada’s spring economic update—and what it means for everyday Canadians. The headline number is hard to ignore: a federal deficit nearing $70 billion. But what grabbed the panel’s attention is what’s behind it. Pinsky calls the government’s plan “depressing” and warns Canada is on a “path to decline,” arguing that borrowed money and increased spending are masking deeper structural problems. His criticism of a proposed “sovereign wealth fund”—which he describes as “a sovereign debt fund”—adds fuel to an already fiery debate. Ouellette offers a more measured view, pointing to an unexpected surge in oil revenues that helped soften the blow. Without it, he suggests, the deficit could have been far worse. But even he acknowledges underlying risks, noting that government spending appears to be propping up economic growth at a time when many Canadians are struggling to keep up. And that’s where the conversation hits home. From grocery store choices shifting from butter to margarine, to the growing number of working Canadians relying on food banks, the panel agrees on one point: the cost of living is squeezing households harder than ever. Klein presses the question many are asking—what is the government actually doing to create jobs and make life more affordable? The discussion then pivots to energy—always a flashpoint in Canadian politics. With renewed talk of pipelines, including U.S. support for a revived Alberta route, the panel debates whether Canada is missing a critical economic opportunity. Pinsky argues the project has already been studied “to death” and should be moving forward, while Ouellette cautions that consultation and environmental considerations remain essential. Hovering over it all is a deeper concern: national unity. With Alberta frustration growing and economic disparities widening, Klein raises the stakes—what happens if the provinces driving Canada’s economy feel pushed too far? It’s a blunt, often uncomfortable conversation—but one that reflects the mood of a country facing tough questions. For listeners looking to understand where Canada is headed—and why so many are worried—this episode of Inside Politics is one to follow.