[Mathgod]

Originally Posted by blankall

There's no way to pinpoint the effect of any one of those things. They all definitely had an effect.

But if we can't be sure what effect each thing actually has, or how much each thing is actually to blame for inflation, it seems rather dishonest to sensationalize the issue and demonize cash payments to individuals as some kind of doomsday sky-is-falling scenario.

Low interest rates had essentially the same effect as providing Canadian individuals with more cash, as the primary vector for that infusion was through personal housing purchases.

But the money goes directly to banks as mortgage payments. Home buyers don't actually realize that "extra cash" until many years in the future when their home is paid off. In the meantime, it's just the banks getting richer.

Are people downplaying the effect of the CERB on inflation, because they want to make the point that if the government offered a guaranteed income it wouldn't just F over the economy? Is that what's going on here?

It's not downplaying if there's nothing real to downplay... if regular people struggling to get by suddenly receive more money to help with their situation, and it doesn't cause much inflation, it's not "downplaying" to point out hypocrisy of those who take the opportunity to scream "SAVE US FROM THE EVIL INFLATION" when they obviously don't give a #### when market speculation creates inflation, corporate bailouts create inflation, or low interest rates create inflation.

If people were serious about combating inflation, they would support higher taxation, especially corporate taxes and property taxes.