akiberg wrote:I wouldn’t bang your head too much about it, courage. we’ll just raise taxes and print more money. problem solved.
Aww, cucki thinks he made a clever.
Your first mistake is thinking I believe those to be blanket solutions and not just tools in the box.
Of course, the truth is that those will be two very powerful tools at the Canadians disposal. It won't matter if it's the CPC or the Liberals, in the event of a post-NAFTA recession/contraction, they'll consider QE and ways of maintaining and increasing gov't revenues through tax adjustments. Bet on it.
That's among the lessons from the recovery from the 2008 Crash in the U.S., Eurozone and UK. Here we essentially nationalised the banks and printed hundreds of billions in QE without creating a lick of the inflation all the doomsayers warned about. It took a massive currency devaluation to get inflation above targets. One place the UK erred was in giving all the QE money to banks which has simply lead to tonnes of private consumer debt while the gov't pretends to have reduced the deficit (well, at least before Brexit).
The other error was not re-jigging tax so that corps didn't just borrow QE money and put profits into cash and board bonuses and ensure they reinvested in actual capital and wages to generate a more sustainable long-term recovery. Some of the value of the QE has been lost because our tax system doesn't create the right incentives to keep that money circulating/multiplying (which would also help the tax revenue side). God knows how much of it sits offshore. One of the results is a continued productivity gap with Europe and anaemic wage growth. I.e. corps and the 1% are filling their savings accounts but everyone else hasn't seen a raise in a while and we produce less per hour, in part because we haven't invested in innovation, infrastructure, public services, etc. Now a big hunk of the public's pockets are empty (Brexit devaluation has helped) and there's not much left to buy shit with/create demand. Even small changes to the tax/expenditure could drastically alter that equation, putting more money in the pockets of a greater bulk of the population AND providing the undergirding for more long-term profits for those at the top of the heap. Inequality fucks them too. That's the lesson of Piketty and the other big works on inequality that have come out in the past few years. Or we could just invoke Henry Ford - fascist though he was - who knew that if he paid his workers well and provided benefits, they'd buy his cars.
But you keep bein' cleaver, sport.