Canadians received another blow this week after Bank of Canada Governor Tiff Macklem admitted that the country's economy is deteriorating and warned citizens to prepare for a "lower standard of living."

During an update on Wednesday, in which Macklem also cut Canada's interest rate to 2.25%, the central bank chief effectively told working families that the days of prosperity are over.

"What worries me most is that unless we change some other things, our standard of living as a country, as Canadians, will be lower than it would otherwise be," Macklem told reporters.

"Unless something changes, our income will be lower than it would be under other circumstances."

This grim admission represents one of the clearest warnings yet that years of reckless government spending, high taxes, and runaway inflation under Liberal leadership have brought the Canadian economy to the brink of collapse.