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> The federal government effectively doubled the national debt in about a year, firehosing money to any and all causes indiscriminately. There's a lot I disagr
by PoignardAzur 5y ago
> The federal government effectively doubled the national debt in about a year, firehosing money to any and all causes indiscriminately.
There's a lot I disagree with in how you're framing your post, but I'll only address this:
What you describe is a good thing.
Borrowing lots of money during a crisis to avoid long-term damage is the best possible use of national debt (whereas compensating for a budget in deficit, the usual offender, is the worst).
We often forget that money is a virtual thing. It's a signal of where value should be distributed. During a crisis, firehosing money towards closed-down businesses is saying "this crisis is only temporary, these businesses should still be able to operate when the economy opens up again".
- peytn 5y agoI think a much deeper analysis would be necessary to say whether this “is a good thing.”
- nameisname 5y agoAgreed. I want to see where this money went.
- refurb 5y agoThe deficit went from ~10% ($30B) in 2019 to 100% ($300B) in 2020 (estimate as not formal budget proposed).
- cal5k 5y agoThat's absurd. Money is not virtual to me, it directly translates to goods and services I can purchase to improve my life. Doubling the national debt in a year will lead to either a) inflation, b) higher taxes, or c) both, all of which are extremely undesirable given that Canada already has a high cost of living and a top marginal income tax rate > 50%. Politicians spent irresponsibly in 2020 and continue to do so now. A cursory examination of even recent history (see: the 90s) is enough to show that we are in for a world of financial hurt within the next decade as interest rates rise to combat inflation.