Quote:
Originally Posted by Slava
Even if the number is 47-50%, what does a federal government do about this? There’s no policy that’s going to suddenly change how people budget their money (or don’t budget).
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In my opinion the Government should do nothing. Increased spending, in the form of handouts, will only work against the BOC that is raising interest rates to slow the economy and stop the spending and inflationary psychology.
At present it still seems like our economy is too hot, and interest rates will continue to go up. However, with the inverted yield curve, I believe we are heading for recession, and the slowing economy should do a lot to cool people's spending.
In the past, the Government would let the economy go into recession every four years, and this would act to moderate people's spending. I think the good times have been allowed to go on far too long, by Government overspending and printing money.