Opinion piece by Chris Aylward Reviewed: With inflation soaring, now is not the time for austerity – Aylward assumes Government Regulations have nothing to do with Inflation😄- January 22, 2022,
First and foremost the one thing I will admit that others aren’t willing to admit is that the “Wealth Effect” appears to work on society when politicians say “hey, voter, look I got you wage increase” a lot of WORKING people in fear of change will still vote for their preferred politician, of course ignoring the obvious that the cost of living has gone up.
Inflation is Fiat dollar phenomenon if money was backed by Gold the problem isn’t inflation, the problem is DEFLATION because the money supply would then be tied to the fundamentals of the economy. a Central Bank can’t print Gold, nor can print oil or any other commodity, collections of human energy are tied to the wealth of this nation, and the government screws things up when it regulates the economy and hides the economic disasters created by its regulations by borrowing money from a central bank, which in Canada is a Federal Crown Corporation.
The Bank of Canada has a monopoly on the Canadian money supply, which allows bad central planning to flourish. During what appears to be the good times, economists in favor of big Government will claim that deficits don’t matter? Which could be interpreted as government regulations on the economy don’t matter? This coincides with the rule by fiat monetary system, which makes it appear as if Big Government is smarter than everyone else.
Power is questioned during periods of rampant inflation because most people imagine Democracy as this perfect institution, the people couldn’t be wrong? So the problem must be those greedy capitalists trying to make a profit at the expense of everyone else? almost as if government employees aren’t making a profit at the expense of everyone else. Former Prime Minister of Canada leveraged his influence in Ottawa to the benefit of the Chinese Communist Party.
Everyone is corruptible and the only reason people are calling for austerity measures is that the inflation genie is a BEAST. Once the inflation genie is out the bottle, forget about price increases, you’ll have shortage problems and bankruptcies, because if let’s imagine there are price controls, as there are in rental housing.
Rent controls didn’t help the Canadian rental markets, rent controls resulted in fewer rental purposed homes being built. Now, capitalists will jump on an opportunity to make money, competition and abundance bring prices down. Scarcity caused by government regulations forces prices up and if consumers aren’t willing to pay the higher costs, said producers of said goods and services will stop selling those goods, which equates SHORTAGES.
What’s that you say Nationalization huh? When the government nationalizes industry as was the case in Cuba and Venezuela, said employees of said now nationalized corporation then have to operate in now said government regulatory environment, without the oversight of the individuals who built said business. The Insurance Corporation of British Columbia(ICBC) is the perfect example of what can go wrong when government nationalizes industry.
BCers now pay the highest car insurance in Canada, why? Because why should ICBC which is a crown corporation/monopoly not grant themselves a pay raise at the expense of their customers, what’s stopping them? They have no competition, meaning that they have no pricing signals to adhere to. I don’t know of any Crown Corporations in Canada going bankrupt? Typically a bankrupt crown corporation will be bailed out by the government.
If any politician dares to consider selling a crown corporation, they’re met with fierce opposition, there are still Canadians who want Petro Canada to be a Crown Corporation again. When government. The problem with Capitalism is DEFLATION, not inflation, inflation is caused by government regulations on the economy and that’s the only reason why some people are calling for austerity measures. Obviously, Chris Aylward is not one of those people but, I just want people who don’t understand what causes inflation to have a better understanding that inflation comes from the GOVERNMENT.
In a free-market economy, capitalists fighting for market share will drive prices DOWN! Capitalists find every means at their disposal to lower COSTS. This is even something Karl Marx understood. The problem modern left-wingers have is that they’re champagne socialists, they want to kill the goose that lays the golden eggs and that pretend that golden goose was a fictitious creation. If humans aren’t incentivized to produce goods and services THEY WON’T.
There’s an abundance of jobs in Canada and a greater abundance of people on welfare, but many of these welfare leeches refuse to work because the government pays them more NOT to work? Like it or not humanity is driven by incentives. Big government regulations are destroying incentives to produce things. If it costs more to produce something and the employer has to pay higher energy costs and labour costs, you expect the owner of the business taking all the risk who also wants to retire one day, not to take any profit for themselves, especially if inflation is running rampant?
The government doesn’t want to take a pay cut, why should the private sector? With that said, I’m sure if the government was efficient with the means of production, it wouldn’t need a private sector, but you see, this all dates back to the argument Socrates made about democracy. In a free-market capitalist society in which people and governments can’t spend beyond their means, you’ll get a more EDUCATED voter, who votes with their dollars.
When the government gets so big that it can destroy the economy, the people who like to imagine that money grows on trees, can vote for this big government stupidity to continue. When you read the article by Chris Aylward only he knows why he imagines the world in the manner in which he does. I personally think it’s a matter of ignorance. Chris Aylward like many others in Canada have only heard one side of the story.
Anyway, to those of you who understand the disaster we’re headed for, you’d be wise to prepare, because Austerity measures at this point is the best-case scenario. What’s likely to happen is what Chris Aylward is calling for which is continued inflation, which equates to more poverty. Austerity measures is like ripping the bandaid off, yes the people will be angry and nobody can predict what will happen, but rampant inflation tends to equate to more severe pain.
Because debasing the money supply lowers people’s quality of life and if the Canadian dollar is worthless in the future and the welfare state still stands, more people will opt NOT to work. which fuels SHORTAGES. Money is supposed to be a store of value when it’s not via consumer price inflation, spending behaviors change and the people with money that can leave WILL LEAVE! which tends to worsen the problem. So to Chris Aylward followers, understand the trade-off you’re making with his pro-Big-Government philosophy
Opinion: With inflation soaring, now is not the time for austerity | leaderpost.com
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