There is an old cliché that inflation results from ‘too much money chasing too few goods.’ If the supply of goods and services doesn’t match the purchasing power of people who want to buy them, then prices will be bid up, causing inflation.
This fable is wrong on multiple grounds: most money in Canada is not printed, most is created by private banks , the supply of base money in Canada is, and the federal deficit has almost disappeared. So according to this theory, prices should be falling. Clearly they aren’t. Indeed, a large body of international research suggests that the post-COVID surge in global inflation mostly resulted from supply disruptions caused by the pandemic — that is, by too few goods, not too much money.
JimBailie2 JimboStanford First the balloon was inflated by ridiculously reducing rates. The BoC zigged, when it should have zagged.
JimboStanford Inflation is tied to minimum wages increases and more taxes. They increase minimum wages to catch up with a living wage. Before minimum increases kick in, companies already increase their prices. Most companies pay minimum wages.
JimboStanford The 'pandemic' did nothing. Gov't policies, the most obvious of which is lockdowns, did this. Put the blame squarely where it belongs & quit defending the indefensible.
JimboStanford What, really? The unprecedented destruction that our governments inflicted on us for no justifiable reason and which all of our media rabidly endorsed hasn't magically repaired itself?
JimboStanford It’s obviously a supply problem: production lead times have increased across a vast swath of industries with no correlating increase in customer orders.
JimboStanford The damage wasn't by the pandemic. It was by insane government response to it.
JimboStanford Quack Quack Quack Quack. This is how you're substantiation uncontrolled immigration. By taxing residents of Canada, this somehow will increase our fortunes. Okay then, what if it fails. I'll wait. We have control of our futures, why squander it?
JimboStanford Canada has no economy thanks to the housing bubble bankofcanada . You want Canadians and Canada to start producing? Allow the free market to crush the housing bubble ponzi scheme or else Canada is finished. It might already be to late.
JimboStanford Quick question.Why isn’t the government calling banks infront of parliament tgey are making a killing and rates on savings accounts are stagnant?
JimboStanford
JimboStanford 'growth' as an economic strategy, specifically 'perpetual growth', is no longer a believable plan. It's a physical impossibility, we need to plan managed degrowth to survive, let alone have even moderately comfortable futures.
JimboStanford Making less in Canada is a pretty good indication as to why China chose Trudeau to be PM.
JimboStanford Without a true circular economy too few goods will be the norm. We already consuming the equivalent of 1.6 earth. Recycling and circular economy is the only way forward if we want to maintain our level of consumption or grow it.
JimboStanford Humble living is.
JimboStanford The whole friggin country is a mess all due to the globalist liberal_party