Trudeau vs. Poilievre: Inflation takes top billing as showdown begins

OTTAWA, Ont. — Prime Minister Justin Trudeau and his brand-new Conservative rival Pierre Poilievre wasted no time Monday seizing on what could become a ballot-box question: Who should Canadians trust most to fix the cost-of-living crunch?

“When government ruins the finances of the nation, it ruins the lives of its citizens,” Poilievre, who was elected in a decisive victory on the weekend, said Monday in his first caucus address as leader.

“We know that people are hurting across this country,” he said.

A few hours later, Trudeau directed his public remarks at a Liberal caucus retreat squarely at his new foil.

“Now is not the time for politicians to exploit fears and to pit people one against the other,” Trudeau said in a speech in St. Andrews by-the-Sea, New Brunswick.

He insisted Liberals have tried to work with all parties. “But this doesn't mean that we're not going to be calling out highly questionable, reckless economic ideas… . Buzzwords, dog whistles and careless attacks don't add up to a plan for Canadians.”

The scene: The Trudeau-Poilievre showdown begins as Canada, like many countries around the world, struggles with decades-high inflation that has followed the Covid-19 pandemic and Russia’s invasion of Ukraine.

Poilievre now holds the powerful controls of the federal party with, by far, the best chance to defeat the prime minister’s seven-year-old minority government.

The next national election will be two years from now — at the latest. After suffering three straight defeats to Trudeau, the right-of-center Conservatives have turned to the populist, freedom-touting Poilievre, 43, to end the string of losses.

The terms: Poilievre wasted no time Monday emphasizing his focus for the coming months — Canadians’ concern over high inflation, taxes and the state of the federal books.

He made it clear he will go after the Trudeau government for the tens of billions of dollars it spent during the Covid-19 emergency. The federal cash came as Covid measures shut down huge parts of the economy, forcing businesses to close and leaving many Canadians without work.

“We know the problem — the cost of government is driving up the cost of living,” said Poilievre, who has made his name as a quick-on-his-feet agitator in Parliament — especially on issues related to the economy and finance.

“It's not only reckless for the future, but it is too expensive for the present to continue to pile on these debts.”

Poilievre has long needled Trudeau and his finance ministers with accusations that Liberal spending during the pandemic drove up inflation. Between spring of 2020 and last fall, for example, the government provided more than C$289 billion in direct income and business support.

He has hammered the government on this issue, even as Trudeau and most economists blame the bulk of the soaring price growth on global factors such as supply chain disruptions, the war in Ukraine and China’s strict Covid measures.

Seizing on the Trudeau government’s management of pandemic finances offers a safe opening for Poilievre, whose Conservatives may get a pass on hypothetical questions about how they would have handled the crisis.

Poilievre, who received several extended ovations Monday from his re-energized MPs, also positioned himself to attack the Liberals whenever they announce new ways to help address affordability concerns.

He claimed the Liberals have done little to help overstretched households — and argued any new measures by Trudeau moving forward will come in response to the pressure from the Conservatives with Poilievre at the helm.

But Poilievre has faced criticism for his own economic proposals during the leadership contest.

Among them, he vowed that if elected prime minister he’d fire Bank of Canada Governor Tiff Macklem for his pandemic monetary policy.

Poilievre also encouraged Canadians to invest in cryptocurrencies as a way to “opt-out” of inflation, a message he delivered shortly before the value the assets plummeted.

Trudeau’s take: Trudeau said Monday that anyone who took Poilievre’s cryptocurrency advice would have seen their “life savings destroyed.”

“Attacking the institutions that make our society fair, safe and free is not responsible leadership,” he said.

Trudeau argued the Liberals have helped Canadians deal with affordability by, for instance, launching a national child-care program with the goal of dropping fees to $10 per day.

He said the government’s financial support during the pandemic for workers, families and businesses was “the smart thing to do.”

‘Humble beginnings’: Poilievre is also trying to position himself to challenge Trudeau by introducing himself as someone from a modest background.

In the past, he’s accused Trudeau, the son of former prime minister Pierre Trudeau, of being out of touch with the average citizen.

“It touches my heart that I am able to address this incredible group, to become leader of the Conservative Party from humble beginnings,” Poilievre said. “The son of a teenage mother, adopted by two school teachers, raised in a normal Canadian suburban household.”

Seeking party unity: Poilievre also has work to heal wounds within caucus from a bruising — and at times nasty — leadership campaign that tested the unity of Canada’s Conservative movement.

Sixty out of 119 sitting Conservative MPs publicly endorsed Poilievre. But 16 threw their support behind the runner-up Jean Charest, who was more of a centrist candidate.

“No matter which candidates you supported during the leadership race, or if you remained neutral, I am very grateful for your contributions,” Poilievre said in French. “We are all together, we are all part of the big Conservative family.”

What’s next: With Parliament set to reconvene next Tuesday after a summer recess, Poilievre will have to demonstrate he can lead all Canadians, not just Conservatives.

Trudeau will have to show Canadians he is still the best person to guide the country through the economic turbulence.