I wouldn't say I'm happy about higher rates, but I do think they were much needed. Canada hasn't seen growth in per-capita GDP in 10-years, but as country we have been able to paper over the problem with low interest rates and government "tax the rich to subsidize the middle class" fiscal policies.
I'm supportive of progressive taxation in a world with increasing income inequality. But if we want to live better lives through the cycle, we need higher incomes. Not higher leverage rates.
Hopefully this will be a wakeup call to have some much needed conversations at the national level.
|