The theme seems to be “reduce operating spending, increase capital spending”. We’ll see how that will blow over with the opposition.
The theme seems to be “reduce operating spending, increase capital spending”. We’ll see how that will blow over with the opposition.
It’s literally how we dealt with the first phase of the Covid pandemic. Was keeping millions of Canadians from being evicted a bad idea?
Covid, and emergencies like it, are entirely the point of fiscal responsibility!
In an emergency, you can max out your credit. If you do that on the regular, for non emergencies, not only will you end up paying an absurd amount of interest, but you won’t be able to borrow more when the next emergency happens!
Great ok so we at least agree that issuing currency is not the fiscal equivalent of drinking bleach, and that there are good and bad reasons to do it.
Edit: You CAN drink a small amount of bleach. Just like you CAN print money during a generational event.
A small amount of bleach will burn a bit. A small amount of printing money caused inflation that we also haven’t seen in decades. It hurts families now but that’s the price we paid to help during covid.
Taxes, then, are disinflationary, right? Which is why we need to tax the rich especially
No, that’s not at all how that works.
At all.
Sorry, but if the first claim is that government spending is inflationary, then there’s no way to claim that taxes aren’t disinflationary.
Lol, wait, what?
Just… Walk me through how you think this would work, say as Canada’s inflation rate hit 8% in summer 2022. Who would you have taxed, what would you have done with said taxes and why you think this would somehow lower inflation?
https://www.marketplace.org/story/2019/01/24/modern-monetary-theory-explained
Really just linking this for the diagrams, which are the most succinct explanation for this that I know of - but this is the theoretical basis for what I am talking about