does Justin Trudeau need inflation

[Dowell]

Justin Trudeau has massively increased Canada’s national debt during times of prosperity, and hard economic times. He has increased the debt from 612 billion, when he took office to 1.16 trillion today. In his 7 years in office he has increased the debt by almost as much as was accumulated in the 148 years before his assuming office. It seems he is unable, or unwilling to stop spending other people’s money beyond their ability to repay it, The only way to deal with the debt is to inflate it away. If you pay more for a good or service the government makes more on G.S.T., excise taxes and import duties. If you get a raise to cope with higher prices, the government collects more income tax. As the purchasing power of the dollar goes down, the value of the debt in real terms decreases.

The massive debt is also pushing up interest rates. In 2020 the federal government issued $369 billion in debt securities (government bonds). After flooding the market, higher interest rates are necessary to continue the government’s policy of spending by borrowing.

Edited May 6, 2022 by Dowell
fix poor wording

[West]

Inflation caused by Trudeau's obsession with printing money is nothing more than a wealth transfer from the middle class to the ultra wealthy

[cougar]

4 hours ago, Dowell said:

After flooding the market, higher interest rates are necessary to continue the government’s policy of spending by borrowing.

Do you know how much we pay to service the national debt - interest plus principal, or just interest?

Any idea where this money came from and who is receiving the interest payments?

[Michael Hardner]

8 hours ago, Dowell said:

 The only way to deal with the debt is to inflate it away.

This is not in Canada's control.

[Nationalist]

49 minutes ago, Michael Hardner said:

This is not in Canada's control.

How do you figure? We didn't need to shut down small business. Nor did we need to shut down schools.

The debt incurred by The Rona was, for the most part, unnecessary. 

[Dowell]

3 hours ago, Michael Hardner said:

This is not in Canada's control.

Justin Trudeau massively increased the money supply while in concert with others put in place restrictions that crippled the economy, which decreased G.D.P. (goods and services generated by the Canadian economy). More money, and less to buy with it means inflation. This is in Canadian control, because we elected the problem.

[Michael Hardner]

1 hour ago, Dowell said:

Justin Trudeau massively increased the money supply while in concert with others put in place restrictions that crippled the economy, which decreased G.D.P. (goods and services generated by the Canadian economy). More money, and less to buy with it means inflation. This is in Canadian control, because we elected the problem.

The economy belongs to an entity known as "the world" and all the wealthy economies did this.

But .... I get it ... Trudeau bad man... yawn.

[Dowell]

31 minutes ago, Michael Hardner said:

The economy belongs to an entity known as "the world" and all the wealthy economies did this.

But .... I get it ... Trudeau bad man... yawn.

https://torontosun.com/opinion/goldstein-trudeaus-runaway-spending-hiked-canadas-debt-160-billion-before-pandemic-hit-report

 

When the COVID-19 pandemic hit Canada in March 2020, Prime Minister Justin Trudeau boasted his prudent management of federal spending since taking office in 2015 meant the government had the “fiscal firepower” to weather the coming economic storm.

But a new study by the fiscally-conservative Fraser Institute — released Tuesday — says runaway spending by the Trudeau government before the pandemic hit added as much as $160 billion to Canada’s public debt, making it much harder to recover from the economic devastation it has caused going forward.

“Additional spending by the federal government in the years leading up to COVID-19 … left the country in worse fiscal shape to deal with the pandemic,” said study co-author Tegan Hill in the report, Ottawa’s Pattern of Excessive Spending and Persistent Deficits.

“Generations of Canadians will be paying for Ottawa’s high spending and additional debt, a situation that was exacerbated, but not caused, by the COVID-19 pandemic.”

The study found between the fiscal years 2015-16 and 2019-20, the Trudeau government ran consecutive deficits, causing the federal debt to rise by $112.2 billion.

During that period, the government increased spending by 36.1%, up from $248.7 billion in 2014-15 (the year before Trudeau came to power) to $338.5 billion in 2019-20, exceeding the growth rate of government revenues.

The report says if the Trudeau government had moderated its spending from 2015 to 2019 — before the pandemic hit in March 2020 — to the rate of inflation plus population growth, or the rate of nominal GDP growth, it “would have recorded surpluses nearly every year over the period and avoided taking on approximately $150 billion to $160 billion in debt.”

Instead, the Trudeau government increased average annual spending by 6.4%, more than double the average annual rate of inflation plus population growth at 2.9%, and nominal GDP growth of 3% annually.

“That led to persistent budget deficits and debt accumulation before COVID-19,” the study says.

During the 2015 federal election that brought him to power, Trudeau promised three years of “modest deficits” — $9.9 billion in 2016, $9.5 billion in 2017, $5.7 billion in 2018 — and a balanced budget with a $1 billion surplus in 2019.

Instead, he delivered annual deficits of $19 billion in both 2016 and 2017, $14 billion in 2018 and $39.4 billion in 2019 — all before the pandemic hit in early 2020.

Today, the Trudeau government no longer gives any date for eliminating the federal deficit the prime minister originally said would be gone by 2019-20, with a $1 billion surplus in that year.

Because of new spending during the pandemic, the Trudeau government now pegs the federal deficit at $327.7 billion for 2020-21; $144.5 billion for the 2021-22 fiscal year which ends March 31; $58.4 billion in 2022-23; $43.9 billion in 2023-24; $29.1 billion in 2024-25; $22.7 billion in 2025-26 and $13.1 billion in 2026-27.

Canada’s combined federal debt — the total of all previous deficits plus interest — went over $1 trillion for the first time in 2020-21 during the first year of the pandemic and is now projected to increase to $1.36 trillion by 2026-27.

“The COVID-19 pandemic has no doubt worsened Ottawa’s fiscal challenges, but it did not create them,” said study co-author Jake Fuss.

“Imprudent spending by the federal government in the years leading up to COVID-19 added billions in debt before the pandemic struck.”

Trudeau is definitely a menace to Canada's future, sorry you napped through all that.

[Michael Hardner]

4 minutes ago, Dowell said:

 

 

1. When the COVID-19 pandemic hit Canada in March 2020, Prime Minister Justin Trudeau boasted his prudent management of federal spending since taking office in 2015 meant the government had the “fiscal firepower” to weather the coming economic storm.

2. During the 2015 federal election that brought him to power, Trudeau promised three years of “modest deficits” — $9.9 billion in 2016, $9.5 billion in 2017, $5.7 billion in 2018 — and a balanced budget with a $1 billion surplus in 2019.

3. “The COVID-19 pandemic has no doubt worsened Ottawa’s fiscal challenges, but it did not create them,” said study co-author Jake Fuss.

4. “Imprudent spending by the federal government in the years leading up to COVID-19 added billions in debt before the pandemic struck.”

5. Trudeau is definitely a menace to Canada's future, sorry you napped through all that.

1. 2. See #3
3. Exactly.  Were they spending in Deficit ?  Sure.   Hard to not spend when your biggest trading partner is, though.  And the US budget deficit for 2019 is/was 25 times the Canadian budget deficit
4. A billion here, a billion there.. if you're not careful pretty soon you're talking about real money
5. Not my favourite PM, but like Doug Ford they were more than adequate during the biggest emergency of our times.  I am open to criticism of any policy that is objective and clear-minded but the "F*ck Trudeau" crowd keeps farting and telling us about their wonderful perfumes.

[CITIZEN_2015]

There is high inflation all over the world. The damn pandemic Interruption to supply chain, Ukraine invasion you name it caused high inflation in every country in the world and Canada is not immune. It is very  hard for everyone as salaries don't keep up with the pace of inflation. Housing is going totally out of control and gas and grocery up significantly as well. Inflation rate for the main items of vital importance like housing, food and gas are far more than the statistical inflation rate and this makes it much worse for average person.

[Dowell]

The Trudeau government's spending was out of control before they imposed the restrictions. Everybody is doing it is no excuse for fiscal mismanagement. 

[Michael Hardner]

6 hours ago, Dowell said:

The Trudeau government's spending was out of control before they imposed the restrictions. Everybody is doing it is no excuse for fiscal mismanagement. 

You have to match what your economically dominant neighbour is doing at least a little.  Since they were deficit spending at 25X the rate we were, our plan was prudent in comparison.  

People also used to finger point Harper's deficit coming out of 2008 out of context.  It's a dumb way to talk about economics.

"You spendthrift, you blew $500 on clothes last month !"
"But I lost my job and needed to buy a suit for inteviews"
"Spendthrift !  Dandy !"

[Dowell]

4 hours ago, Michael Hardner said:

It's a dumb way to talk about economics.

Smart economics is using good times to build your economy to prepare for hard times. Even a squirrel knows to store nuts for the winter.

[Dowell]

On 5/6/2022 at 8:36 AM, Michael Hardner said:

And the US budget deficit for 2019 is/was 25 times the Canadian budget deficit

If you want to emulate the Americans, maybe we should build an aircraft carrier the size of a city, create a nuclear arsenal and invade Iraq.

[Michael Hardner]

11 hours ago, Dowell said:

The Trudeau government's spending was out of control before they imposed the restrictions. Everybody is doing it is no excuse for fiscal mismanagement. 

It's hard, because the trading neighbour is expanding the amount of money and spending.

The Liberals were initially pretty prudent.

Trump was an economic maniac.

[Michael Hardner]

2 minutes ago, Dowell said:

If you want to emulate the Americans, maybe we should build an aircraft carrier the size of a city, create a nuclear arsenal and invade Iraq.

If you want to make bad analogies we should say...

If we don't want to be like America we should abandon democracy and align with N. Korea.

[Dowell]

10 minutes ago, Michael Hardner said:

If we don't want to be like America we should abandon democracy and align with N. Korea.

They have their own economic problems, but Justin might fit right in.

[Queenmandy85]

What could they have done differently? The same people who say we shouldn't be spending our future generations wealth are advocating selling off our future generations means of survival. (ie. coal oil and iron.) 

[Dowell]

10 hours ago, Queenmandy85 said:

What could they have done differently?

Justin could have listened to his finance minister Bill Morneau, one of the most respected money managers in the country,  when he told that we needed to manage the economy rationally. Instead he refused to answer his calls and replaced him with a former journalist, and raided the piggy bank. 

[myata]

Trudeau has switched the agenda and is now busy standing up to an authoritarian tyrant (the irony). He may yet beat Putin by the time in the office.

[Faramir]

On 5/5/2022 at 6:52 PM, Dowell said:

Justin Trudeau has massively increased Canada’s national debt during times of prosperity, and hard economic times. He has increased the debt from 612 billion, when he took office to 1.16 trillion today. In his 7 years in office he has increased the debt by almost as much as was accumulated in the 148 years before his assuming office. It seems he is unable, or unwilling to stop spending other people’s money beyond their ability to repay it, The only way to deal with the debt is to inflate it away. If you pay more for a good or service the government makes more on G.S.T., excise taxes and import duties. If you get a raise to cope with higher prices, the government collects more income tax. As the purchasing power of the dollar goes down, the value of the debt in real terms decreases.

The massive debt is also pushing up interest rates. In 2020 the federal government issued $369 billion in debt securities (government bonds). After flooding the market, higher interest rates are necessary to continue the government’s policy of spending by borrowing.

ALL governments secretly LOVE inflation.  It really is the only tool they have left to manage their debt loads.  It's just that Liberals/liberals always outdo moderate or conservative regimes.

[-TSS-]

I never knew who was the foreign minister of Canada but a couple of days ago she made a statement concerning the Finnish and Swedish membership in NATO.

What caught my ear was that English clearly isn't her first language. We often forget that Canada is a bilingual country. 

[ExFlyer]

Housing is anywhere from 10 to 80% depending where you live

Gas is up 36%

Meat up 10% (way more in my grocery stores)

Bread up 12%

Pasta up 19%

Coffee  13%

Natural gas up 22%

oil and other Fuel 64%

 

How is it that inflation is only 6.8%

[Dowell]

On 5/9/2022 at 2:38 PM, Faramir said:

ALL governments secretly LOVE inflation.  It really is the only tool they have left to manage their debt loads.  It's just that Liberals/liberals always outdo moderate or conservative regimes.

It is also a transfer of power. Governments used to be there to build infrastructure, that needed to be provided collectively, fight crime, secure our borders and provide education and health care. Increasingly they are now into social engineering. They want to make the world into what they know it should be, so they need to change us into the people they know we should be. Wealth is power, and they need a larger share of our wealth, to make us the people we should be.