Quote:
Originally Posted by #-3
A lot, I just made 4 arguments you chose not to debate.
- The LPC doesn't control other countries spending or the trade balance.
- A lack of government spending might have been a drag on the private sector hurting the tax base and making the deficit worse
- A lack of spending may have worsened the supply crisis, worsening inflation when countries were competing over scarce goods.
- Maybe the problem isn't spending, but lack of taxes when corporation profits are at record levels
|
https://www.theglobeandmail.com/busi...wing-billions/
Quote:
Fiscal and monetary policy are related. The key to untangling the current mess is acknowledging that the government cannot borrow more without causing more inflation.
The Bank of Canada bears some responsibility for the problem. It waited a full year from the breakout of inflation, finally raising interest rates from 0.25 per cent to 0.5 per cent last March. Whether the bank’s slowness to act made inflation worse is a topic of debate, but it surely did not help.
Other popular arguments do not work. Supply chain shocks raise one price relative to another, not all prices and wages together. Energy prices have risen and fallen many times without sparking inflation. Greed has been with us always.
|
Explained pretty well here.