Author Topic: Government Day-to-Day  (Read 53205 times)

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Offline Squidward von Squidderson

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Re: Government Day-to-Day
« Reply #2190 on: June 20, 2022, 07:19:28 pm »
Trudeau shirking inflation fight. Scotiabank states the obvious, increased government spending is inflationary and the resulting increase in interest rates penalize the public and business.

https://www.bnnbloomberg.ca/trudeau-is-shirking-canada-s-inflation-fight-scotiabank-1.1781115

This seems to be a popular right wing talking point…. blaming government COVID spending. 

I’m thinking a large tax increase on corporations like banks that rake in billions in profit over decades would help us ease government deficits, but, for corporations like Scotia Bank, the solution is cutting services to regular people.

The Liberal way is neither of these options, it seems…but, to blame government for a global issue is rather rich. 

Offline wilber

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Re: Government Day-to-Day
« Reply #2191 on: June 20, 2022, 07:43:46 pm »
This seems to be a popular right wing talking point…. blaming government COVID spending. 

I’m thinking a large tax increase on corporations like banks that rake in billions in profit over decades would help us ease government deficits, but, for corporations like Scotia Bank, the solution is cutting services to regular people.

The Liberal way is neither of these options, it seems…but, to blame government for a global issue is rather rich.

They are blaming them for continued high government spending while the BoC increases rates to slow private spending. As if one is inflationary and the other isn't.

Like bankers know nothing about economics or something.

This government will not balance a budget, ever. It's just not in their DNA.
« Last Edit: June 20, 2022, 07:45:31 pm by wilber »
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Offline Squidward von Squidderson

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Re: Government Day-to-Day
« Reply #2192 on: June 20, 2022, 07:58:07 pm »
They are blaming them for continued high government spending while the BoC increases rates to slow private spending. As if one is inflationary and the other isn't.

Like bankers know nothing about economics or something.

This government will not balance a budget, ever. It's just not in their DNA.

Bankers look after bank profits.  Less private spending = less loans given by banks = less profits.  They’re not looking out for Canada’s, or Canadian’s, interests. 
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Offline wilber

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Re: Government Day-to-Day
« Reply #2193 on: June 20, 2022, 09:12:11 pm »
Bankers look after bank profits.  Less private spending = less loans given by banks = less profits.  They’re not looking out for Canada’s, or Canadian’s, interests.

He isn't complaining about high interest rates reducing private spending, he is saying increased government spending defeats their purpose.

What is the point of the BoC trying to drive inflation down with high interest rates to slow private spending when government is doing the opposite.
« Last Edit: June 20, 2022, 09:14:28 pm by wilber »
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Online Black Dog

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Re: Government Day-to-Day
« Reply #2194 on: June 21, 2022, 11:57:09 am »
It definitely sucks when ordinary people have money to spend on things, this needs to stop.
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Offline kimmy

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Re: Government Day-to-Day
« Reply #2195 on: June 22, 2022, 12:21:20 am »
It definitely sucks when ordinary people have money to spend on things, this needs to stop.

Ordinary people make your coffee and flip your Big Mac or change your oil and stock the shelves at your local grocer and all the other stuff that people take for granted.

As wages continue to stagnate while cost of rent and food and gas increase rapidly, the people who do those jobs in your community won't be able to afford to do those jobs in your community for much longer.  This will probably impact Dethbridge later than it will hit Toronto or Vancouver or even Kim City, but it will arrive sooner or later.

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Online Black Dog

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Re: Government Day-to-Day
« Reply #2196 on: June 22, 2022, 10:43:36 am »
Ordinary people make your coffee and flip your Big Mac or change your oil and stock the shelves at your local grocer and all the other stuff that people take for granted.

As wages continue to stagnate while cost of rent and food and gas increase rapidly, the people who do those jobs in your community won't be able to afford to do those jobs in your community for much longer.  This will probably impact Dethbridge later than it will hit Toronto or Vancouver or even Kim City, but it will arrive sooner or later.

 -k

The point is raising interest rates will put put more of those people out of work and make it harder for them to pay their already high housing costs along with all the other necessities of life, the prices of which will continue to increase.

Offline wilber

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Re: Government Day-to-Day
« Reply #2197 on: June 22, 2022, 05:43:56 pm »
The only thing governments can do to combat inflation is try and reduce demand. The only tool they have is higher interest rates.
I don't know how governments thought they could continue to promote growth through low interest rates and huge government spending and not have increased inflation.
Maintaining they could was either wishful thinking or BS.
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Offline Michael Hardner

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Re: Government Day-to-Day
« Reply #2198 on: June 22, 2022, 06:25:07 pm »

I don't know how governments thought they could continue to promote growth through low interest rates and huge government spending and not have increased inflation.
 

Yeah, geez it only worked for 13 years eh ?


Offline wilber

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Re: Government Day-to-Day
« Reply #2199 on: June 22, 2022, 08:38:55 pm »
Yeah, geez it only worked for 13 years eh ?

Really? When else did a government print over 300 billion in one year and dump it into the economy? The housing market is collapsing because interest rates have gone just over 2%. What do you think drove them up?
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Offline Queefer Sutherland

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Re: Government Day-to-Day
« Reply #2200 on: June 22, 2022, 08:59:07 pm »
The only thing governments can do to combat inflation is try and reduce demand. The only tool they have is higher interest rates.
I don't know how governments thought they could continue to promote growth through low interest rates and huge government spending and not have increased inflation.
Maintaining they could was either wishful thinking or BS.

The gov can also combat inflation with higher taxes and lower stimulus spending.  They won't do the taxes thing and probably won't do the reduced spending.

They aren't going to fix gas prices so there's only limited things they can do.
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Offline wilber

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Re: Government Day-to-Day
« Reply #2201 on: June 22, 2022, 09:33:36 pm »
The gov can also combat inflation with higher taxes and lower stimulus spending.  They won't do the taxes thing and probably won't do the reduced spending.

They aren't going to fix gas prices so there's only limited things they can do.

Interesting article on the CEEB today.

https://www.cbc.ca/news/business/gas-tax-canada-biden-1.6497640
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Offline Squidward von Squidderson

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Re: Government Day-to-Day
« Reply #2202 on: June 22, 2022, 09:41:07 pm »
Interesting article on the CEEB today.

https://www.cbc.ca/news/business/gas-tax-canada-biden-1.6497640

Wouldn’t making gas cheaper also push up inflation? 

Offline wilber

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Re: Government Day-to-Day
« Reply #2203 on: June 22, 2022, 09:59:46 pm »
Wouldn’t making gas cheaper also push up inflation?

The high price of fuel is one of the primary drivers of inflation. It is increasing the cost of just about everything.
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Offline Squidward von Squidderson

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Re: Government Day-to-Day
« Reply #2204 on: June 22, 2022, 10:03:25 pm »
The high price of fuel is one of the primary drivers of inflation. It is increasing the cost of just about everything.

Why gas?  Why not food?  Rent? 

The obsession with fuel prices, and not rent and food, are driven by rightwing talking points.