Canada had the worst performance per capita in the entire OECD since the Liberals took over, beating only Luxembourg. Which now theres a doctor shortage, an extreme housing shortage, food bank usage is up dramatically; all after we took on a lot of debt that we now pay interest on. Can you say the cons would have been worse than all that?
Can you explain it to me because I’d love to know more. My base assumption is if the US had a spike in food prices would they not dramatically increase interest rates, until food prices deflated?
Rising rates would then drop their current asset bubble due to a contraction in money supply. Hence it could be seen not to be as much a tax as it would be a large amount of pain for existing asset holders who hold nominally valued assets, which would mainly be the rich?
Another assumption I’d make is higher inflation would also lead to a lower unemployment and greater wage pressure, due to the phillips curve?
The price hike causes inflation, as the tariff is passed on to consumers. Interest rates control the growth in the money supply, with less physical money available the velocity of money slows and prices fall, which causes deflation.