Quote:
Originally Posted by dammage79
So if the carbon tax isn't directly forcing inflation, what is?
Because from a lot of people's perspectives and why the PCs are likely taking this election is that since the implementation of said carbon tax, inflation has gone off the rails with nothing being done to prop up wage growth to keep pace.
So if it's working and not damaging the ability for paycheck to paycheck people (the majority of folk and more and .ore ppl falling into this category) to eat or keep up, then what is causing this.
Because if anyone can explain this to the masses without coming off as a condescending person, they would likely win a ton of votes.
Reality is, a lot of struggling people have taken their real world experience of trying to survive and have seen that their lives have been negatively affect since the implementation of the carbon tax.
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There are numerous causes to the inflation:
1. Loose fiscal policy (a vast understatement)
2. Loose monetary policy. Like #1, this is partly because the policymakers usually lack the intestinal fortitude to unwind the free money in time, because people like it.
3. Supply constraints due to covid and lack of capital investment. People complain about "trickle down economics", and then really don't like it when things stop "trickling down"
4. Carbon tax, which raises the price of everything. Inflation is the purpose of this tax, explicitly. It's not a side effect. The purpose of the tax is to make goods more expensive and reduce demand as a result. Reduced economic activity and demand means reduced carbon emissions.
It's important for the citizenry to remember that from a policy perspective, inflation does two things they don't often contemplate: it reduces the value of past debt, especially public debt. In other words it's a way for the government to improve its fiscal position. Two, it is a highly efficient form of wealth transfer from the poor and middle class to the rich.