Here's what every Canadian should know. If the federal government is running a deficit, money is flowing into your pocket. If the federal government is balancing the budget or running a surplus, the money in your pocket is going down. It really is that simple. There are no examples in Canadian history, where balancing the budget or paying off the national debt improved that lot of any regular people. In 2004/5 Alberta had, essentially, no provincial debt and Albertans' lives were not measurably better. The GDP per capita was about the same as it is always has been.
@BestStephenD No way! 🤯 In that case, we should deficit even more! It was this easy this whole time 🙈 Why simple double the debt when we can 10x it. Forget GDP, service interest and other non relevant metrics. Pay 👏 me 👏 more 👏 with 👏 more 👏 deficit 👏 right👏 now 👏
@BestStephenD What does running a deficit do to inflation?
@BestStephenD Check out Greece, Venezuela, Argentina, or my favourite -Zimbabwe, where Robert Mugabe discovered it was great fun to be able to print your own money non stop without really needing an economy to create any demand for it. It didn’t end well:)
@BestStephenD It's not that simple. You're as wrong as you could possibly be.
@BestStephenD More money for Ukraine. More inflation for Canadians.
@BestStephenD That deficit money is not running into your pocket, it is inflating diarrhea.
@BestStephenD 1. When the government runs a deficit they devalue the currency by inflating the money supply (creating new dollars) to pay for it 2. The entire country suffers under inflation because the money is worth-less (you need more of it to buy the same things)
A Keynesian expert has entered the room! You have now unveiled the dirty secret of fiat money. The supply can never stop growing. As it grows, your money and wages lose purchasing power. As it is taxed, your wealth is stolen. Government money is in a death spiral toward infinity, losing its purchasing power at an exponential rate. Get your savings into hard assets while you can! Bitcoin is a great choice for the long term despite its short term volatility.