Inflation, at its core, is a problem of too much money chasing too few goods
In Canada, the textbook example of runaway inflation was the Klondike Gold Rush. Prospectors were becoming millionaires overnight, and yet they were in a remote wilderness where basically every commodity had to be carried in by mountain pass. The result wasSome of the current inflation is due to the simple fact that there are legitimately fewer things to buy: Supply chain breakdowns are still prompting shortages that are leaving shelves bare and car lots empty.
Adding to the firepower was the fact that interest rates were kept rock-bottom. That resulted in a rush to take outBut Trudeau is certainly not alone in his attempts to tame a cash-heavy economy with even more cashin tax rebates, much of which will come in the form of extra $163 payments made through the B.C. Climate Action Tax Credit.
Politicians refuse to serve the public interest and only their own. It’s been that way for decades.
TRUDEAU! Honestly. You are an economic disaster! You are so narrowly focussed on your personal objectives. Wake up! We are in trouble! You have to stop spending!
Bank economists were so accurate at predicting the 2008 crash. They most certainly couldn’t be wrong about this - or saying things in their own self-interest. Nothing gets an economy moving like more austerity.