I guess, this news got lost with all other staff going on now, but the liberal government just announced a 100% one-time increase in GST rebates for low and low-mid income families. Think about it: 100% increase in GST rebate payments when the inflation is 7% for people who, most likely, spend all their income right away and whose major spending is food and rent (not subject to GST to begin with). Way to go to help fighting the inflation! Another economics stupidity (or populist move, or both) by beloved Justin. I am wondering, how he expects to pay the government debt with sky-rocketing interest rates?
one-time GST rebate increase
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Morons. Oh and if anyone believes the 7%-8% 'official' rate of inflation they're telling us I'd wake the f up. If I had to ballpark true inflation its at least double that.
Justin doesn't understand anything. How this coutry keeps electing this Bozo is
Justin doesn't understand anything. How this country keeps electing this bozo is beyond me.
A tighter fiscal policy (no payments) would be better and in line with the central bank's attempt to fight inflation. Payments to low-income people is the main feed of inflation as their propensity to consume is close to 1.
I agree with you that he should not do anything, but if he were to do something doing it through GST rebate is sensible.
Wait, first you want him to do something about inflation, then when he does it you're against it?
This is what happens when a person who does not know basics Economics read economics post - he misses the sarcasm. I wanted him to do something against inflation, instead, he gives money to low-income families, which fuels the inflation.
Depends on what "something": if we want inflation to go even higher, doing it through GST rebates is the way to go (giving money to people who need them and will spend them right away is what drives the inflation)
Giving money to low income Canadians "fuels inflation"? So just giving huge tax cuts instead to big Corporations, and The Richest 10% or so is supposed to "Curtail Inflation"?
I see the Conns logic!!
Giving money to anyone fuels inflation. However, given it to poor people fuels it more because they will spend them all. It is not "Conns logic", it is basic Macroeconomics (AS/AD model) that all politicians should be familiar with.Giving money to low income Canadians "fuels inflation"? So just giving huge tax cuts instead to big Corporations, and The Richest 10% or so is supposed to "Curtail Inflation"?
I see the Conns logic!!
Oh right, the proper way to fight inflation is to tax the poor and middle class even more so there is less spending.
That's the fall way.
Then you give the oil $ gas industry tax breaks for making so much money during the Ukraine war.
Totally cures inflation.
yes to the first, no to the second. How about cutting ALL spending and paying down the government debt instead? The debt was already huge with 1% interest rate. With 4%, it is no longer feasible for the budget. So, there are only 2 ways to pay it: (i) cut spending and start repaying it now before the government needs to "refinance" it or (ii) Run high inflation so that it debt will decrease in real dollars.
an increase of 3% since the spring on 1,4 Trillion dollars of debt increases the annual debt service cost of the federal govt by 44 bbilion annually
Justin will cover that .... with more govt borrowing
Your kids and grand kids will be burden with paying the bill for electing the moron Justin Trudeau
Justin's kids and grandkids will not be burdened
Justin Trudeau Net Worth 2022 – Salary Wiki Cars House (Canada PM) (caknowledge.com)
Justin Trudeau’s Net Worth is $85 Million US Dollars.
Yep, wouldn't want those pesky serfs to be able to eat pay rent, etc.
You would not want those pesky serfs to upgrade their skills to get a better job and be able to afford to eat and pay rent
Yep, you would prefer they remain dependant on government hand outs.... permanently
Your hilarious using your gut like Donnie! Who needs experts stats and real numbers when you can ballpark it
Have you ever thought that 50% of the population is below average intelligence and perhaps can't? So what to do with them? Eugenics? Perpetual poverty?
What you end up with is a shitload of disgruntled people with low intelligence easily swayed by populists making stupid decisions at the ballot box and in the streets.
As well they are the consumer class that a capitalist society most relies on to spend and consume. Take away their capability to do that and the whole thing collapses. Which leads to civil unrest, mass migration, and even war, as leaders seek to distract.
Wealthy people don't spend money on mass. They are in fact less important.
by definition 50% of the population is less intelligent than the other 50%
its been that way since there were two
Above average intelligence is not a perquisite for being innovative or assuming the responsibilities of risks
it is certainly not a prerequisite for assuming the responsibility of taking care of themselves and their families
nor is it a perquisite for assuming the responsibility to better one skills
let them assume the responsibility of successfully navigating through life
That is a funny way to describe the right who oppose the the welfare state & who are not looking for a handout. They are not in the streets as they are busy working and taking care of their responsibilities.
You must describing the left.
spend some fraction what you can earn.
if you desire more consumer goods & services than you can afford, then upgrade your skills so you can command better compensation
vs your plan to encourage all to believe they are entitled & can get others to pay for their consumer goods & services
I guarantee your society will crumble quickly as you will always run out of other peoples money
less important?
Measuring the Distribution of Taxes in Canada: Do the Rich Pay Their “Fair Share”? (fraserinstitute.org)
Families in the top 10 percent pay 39.6 percent of all taxes and earn 33.1 percent of total income.
If they are paying a disproportionate % of the taxes, they are also very likely to be spending a disproportionate % of the total consumers spend
and on high margin goods(ie boats, planes, etc) and local ( construction, professional services)
And they also invest , start companies, employ people and make consumer goods better in search of a margin
they are also a driver of charitable donations
StatsCan finds high-income earners donate the most to charity | Advisor's Edge
calling wealthy people less important, shows your lack of understanding of what drives an economy.
it is also very unproductive identity politics
BTW- The US is a consumer driven economy , Canada is far more dependant on resources
