# Prime Minister Trudeau Seeks to Restore Economic Security
Prime Minister Justin Trudeau is preparing to address his cabinet during a three-day retreat in Charlottetown this week. His goal is to rebuild Canadians’ confidence in his government and restore their sense of economic security. This cabinet differs significantly from the previous one, as seven of the 38 ministers have been completely replaced and 19 have been assigned new responsibilities.
The government will particularly focus on addressing the housing affordability crisis, which has become increasingly important due to the impact of COVID-19 on younger Canadians. Rising costs have made it difficult for them to even afford renting their own homes, hindering their dreams of homeownership.
While no major policy announcements are expected to come out of the retreat, ministers will receive briefings from housing and youth experts. These briefings aim to inform federal decision-making this fall and may include discussions on negotiating a national housing accord. Such an accord would bring together all levels of government, as well as not-for-profit and for-profit housing agencies, to construct the estimated 5.8 million new homes needed to restore affordability to the housing market by 2030.
However, the Liberal Party’s poll numbers have been declining as the COVID-19 pandemic and subsequent inflation have left voters weary. Conservative Leader Pierre Poilievre has been capitalizing on this sentiment, claiming that everything in Canada has been broken under the Liberals’ leadership. Susan Smith, a Liberal strategist, believes that the government needs to counter this narrative and acknowledge the changed economic reality since they came into office.
The Liberals are particularly concerned about the declining support from younger Canadians, who heavily supported them in the 2015 election but have been growing distant in recent years. A recent survey showed that the Conservatives have been gaining support, especially among 18- to 34-year-olds. Housing affordability is a major issue for this demographic, although it affects people of all age groups.
The blame for Canada’s housing inequality has been placed on Trudeau by Poilievre. Poilievre argues that wage growth has not kept up with housing prices during Trudeau’s tenure. Data from Statistics Canada shows that average weekly earnings have increased by 26% since 2015, while the average home purchase price has risen by over 70%.
At the retreat, the Liberal cabinet will be briefed by experts in the field, including Paul Kershaw from the Generation Squeeze think tank, Tim Richter from the Canadian Alliance to End Homelessness, and Mike Moffatt from the Smart Prosperity Institute. These experts will provide insights on housing issues and potential solutions to address the economic challenges faced by young people.
One of the main recommendations in a national housing report, co-authored by Richter and Moffatt, is the implementation of a national housing industrial strategy. This strategy would involve collaboration between different levels of government, along with the private and non-profit sectors. It would set targets for housing construction, improve data and research on population growth and housing needs, and remove federal sales taxes on new rental housing construction.
Moffatt believes that the invitation to speak at the retreat indicates a positive intent from the government to address these recommendations. This reflects a renewed focus on housing as a critical aspect of their policy planning. However, the overall messaging from the government extends beyond housing. Prime Minister Trudeau’s message to his ministers is clear: they should strive to make someone’s life better every single day.
*Copyright 2023 The Canadian Press*
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