blackbird Posted November 24, 2021 Report Share Posted November 24, 2021 When PM Trudeau was asked in Question Period today what his solution is to the high inflation of 4.7%, his answer was the government is spending more on things like $10 a day child care and more programs to make housing more affordable. Presently the government has created a debt for Canadians of approaching half a TRILLION dollars. This massive debt has to be the main reason that is driving prices up at an average of 4.7%. This will effect the great majority of Canadians negatively. So how can increased government spending by tens of billions of dollars, which will simply add to the existing bizarre debt, reduce inflation? It can't reduce inflation. Increasing the debt can only make inflation worse and negatively effect most Canadians. The PM just does not seem to really care about Canadian families. All he can say is he is moving forward on $10 a day child care. This massive increase in government spending certainly will do nothing to reduce inflation. Quote Link to comment Share on other sites More sharing options...
Faramir Posted November 24, 2021 Report Share Posted November 24, 2021 Sadly we are all Keynsians now. Too many dollars in the system are essentially the cause of inflation. Central banking basically is at the core of it. 2 Quote Link to comment Share on other sites More sharing options...
suds Posted November 25, 2021 Report Share Posted November 25, 2021 Low interest rates are great for the economy (not to mention tax revenues) while higher inflation allows governments to inflate away its debts. Basically the combination of low rates and higher inflation is good for borrowers but not so good for savers or the currency. It's why central banks like to strike a balance between interest rates and inflation's inverse relationship. Governments can pay off debt by increasing taxation or by inflating it away. So when you go shopping and find things are a little more expensive just look at it for what it actually is.... regressive taxation. Quote Link to comment Share on other sites More sharing options...
Shady Posted November 26, 2021 Report Share Posted November 26, 2021 All of Trudeau’s policies cause inflation or an increased cost of living. Most of it’s by design. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.