Interest rates would be 200 bps lower if governments spent less, says Scotiabank Bank of Canada would only have had to raise rate to 3% if government spending hadn't stoked inflation, say economists

[CdnFox]

https://financialpost.com/news/government-spending-pushed-up-interest-rates-scotiabank

Basically as the title says - if the gov't had spent less we woudlnt' have had to raise interest rates anywhere near as much and we would have had lower inflation.

It notes the gov't overspent BEFORE the pandemic and the pandemic spending was too much for too long, and they've spent too much since the pandemic.

THe majority of our inflation/interest rate problems have been a direct result of the gov'ts policies. I know a certain someone who likes to pretend otherwise by creatively interpretening English but here it is again for those who missed it

 

So - why is this worth mentioning right now?

Tomorrow - freeland is going to give their 'economic update' which will have plans for fighting inflation and housing.

Gov't spending if what is causing the problem - so if you just give people more money you're just making the problem worse. You have to do something else to solve the problem.

Want to bet she just gives people more money?

 

Sigh - maybe the upcoming recession will bring things under control .