At a time when Canadians are in more debt than ever and while interest rates are at record highs, Prime Minister Justin Trudeau advised Canadians to use their credit cards to make large purchases in order to grow the economy.
Trudeau faced a fury of criticism online after he made those comments at a townhall in Moncton, New Brunswick over the weekend.
At the townhall, the prime minister explained how borrowing money as a government is similar to using a credit card and suggested Canadians use their credit cards to pay for their tuition and home renovations.
“If you’re using your credit card to go back to school, or if you go into debt to build an expansion on your house, then you’re going to be able to sell your house for more,” said Trudeau in last week’s townhall in Moncton, New Brunswick.
“If you’re making investments that are going to return, that is how you grow a strong economy because quite frankly, confident economies invest in themselves.”
Canadians were quick to criticize the prime minister, pointing out how Canadians are struggling to make ends meet.
Conservative leader Pierre Poilievre responded to Trudeau’s comments on Twitter.
“Want to know why 1 in 5 people are forced to skip meals; why 9 in 10 youth believe they’ll never afford a home; and why our debt has doubled?” Wrote Poilievre. “Just listen to the guy running our economy talk for a minute about credit cards.”
Want to know why 1 in 5 people are forced to skip meals; why 9 in 10 youth believe they’ll never afford a home; and why our debt has doubled?
— Pierre Poilievre (@PierrePoilievre) April 11, 2023
Just listen to the guy running our economy talk for a minute about credit cards. pic.twitter.com/mEyX8nlhH7
“Most don’t have a trust fund. My family didn’t have credit cards to fund things. We saved,” wrote Conservative MP Frank Caputo. “A PM advising to borrow at 28 percent interest to build wealth?”
Most don’t have a trust fund.
— Frank Caputo MP (@FrankCaputoKTC) April 11, 2023
My fam didn’t have credit cards to fund things. We saved. A PM advising to borrow at 28 percent interest to build wealth? #cdnpoli
P.s. with compound interest, your debt doubles every 3 years at those rates. P.p.s. budgets don’t balance themselves. https://t.co/InKlpjPeJx
“We have the highest consumer debt loads around the world,” wrote journalist Alex Pierson. “The PMs advice— we should just charge our way out?”
We have the highest consumer debt loads around the world. The PMs advice— we should just charge our way out? 😜 https://t.co/tEbGgUrg9z
— Alex Pierson (@AlexpiersonAMP) April 10, 2023
Twitter user @andi_1117 questioned Trudeau’s advice, pointing out that interest rates on credit cards are currently very high.
“Don’t use a credit card to invest in anything. Something that pays 29% interest is not a smart borrowing option. How is he Prime Minister?”
Kids, do not and I repeat do not take financial advice from Justin Trudeau.
— Andi (@andi_1117) April 11, 2023
I can’t believe I have to say this. Don’t use a credit card to invest in anything. Something that pays 29% interest is not a smart borrowing option. How is he Prime Minister? #cdnpoli https://t.co/JpBWtlL1wC
The Liberals’ Budget 2023 revealed the party’s plans to push back balancing the budget until 2028. The budget unveiled plans to expand spending on dental care and being offering struggling Canadians grocery rebates. The Liberals are predicting a $40.1 billion deficit.
Canada’s interest rate is sitting at 4.5% after the Bank of Canada hiked rates eight times in the last year in an attempt to cool inflation.
