Quote:
Originally Posted by CliffFletcher
Not to mention dramatically increase the cost of servicing the enormous debt our governments have taken on. Which in turn would necessitate deep public spending cuts.
Who knew there would be a downside to government spraying out torrents of cash at a time when deficits were already at historic levels? But maybe this time will be different. Maybe for the first time since money was invented pouring made-up money into the economy will not lead to inflation.
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A lot of this is going to be compounded by the fact Canada was already in the midst of crisis involving a widening generational wealth gap and globalization. We're going to see a further cementing of a class system. Anyone with a job that doesn't require a lot training or that can be done overseas is going to be left behind. Anyone who isn't inheriting a huge amount of money from their parents isn't going to be able to make up for that shortfall via hard work.
Some of the takes in here....are very optimistic? A few simple rules:
1. Increased material and fuel costs will not result in employers paying their employees more.
2. Increased interest rates are not good for people with lots of debt. Canada just went through a period where both debt and money supply were rapidly increasing. Not good.
3. Inflation is never good for employees on fixed wages. The cost of living rises first. Salaries rise over time...if at all.