If spending must increase, onwhat should it increase, and on what not?

[Machjo]

You cannot have 0 Inflation, the economy would collapse. Although sounds good but would be horrible for Canada. The reason is this. If Canada had 0 inflation and the rest of the world had say the average of 3% then every year the Canadian dollar would be worth less and less money. Which would ruin the economy and in the end cause an inflation rate higher than 3% so that prices and the value of our currency would catchup to the rest of the world. Sounds great but wouldn't work. Debt, for sure lets get it to 0, probability, a long long time, but you have to have a goal.

Also 0 Interest rates for the Bank of Canada wouldn't work economically aswell. Although again the idea is great it wouldn't work in a Capatalist sociaty and I don't want to go down the non-democratic route that it would work under.

Of course the Canadian economy is adicted to inflation, and so tough love would be needed, granted. As for the Canadian dollar re other currencies, it would INCREASE in value, not decrease. Common sense.

This could work even in a leftist government that was prepared to practice tough love. It could still increase funding for education, etc., but would have to get it from higher taxes rather than unstable inflation. This is possibly why inflationis so popular. It's a way to increase spending without having to be honest as to its real cost. If a government was prepared to be honest, and the people were willing to pay higher taxes for services rather than just have the govt print money, it could work. It's just the govenrment would have to work harder to convince the people to accept such tax increases. Clearly inflation is easier politically in spite of its harm.

Believe it or not, I'm left-learning myself, but I'm wht we might call an economically conservative leftist (i.e. help the poor, but honestly by making the cost obvious to the taxpayer who must be prepared to accept this) . this is democracy after all, and the electorate has the right to know.

 

[rd1331]

You cannot have a sustained inflation rate of 0%. Sorry should have explained it better.
Think of it this way. Canada has a sustained inflation rate of 0%. All the other countries average 3%, lets say there is a global currancy called the UN dollar, or whatever. Lets talk one product. Lets say Coke and it sells for $1 Canadian today and $1 US today. Also lets say Coke is based out of the US and its price is attached to the global market. On the global market the price stays the same. So next year a coke, still worth $1 UN, now costs us 1.03 canadian. Then next year 1.06 canadian and such. You can see where it goes. So every year Canada would have an inflation rate brought on by the global economy. Unfortunately/Fortunately, we have to think global now, and you can not make a dramatic change like 0 inflation without huge consequences.

The 0 Interest rate is a lot more complicated so let me think of a better way to explain it.

 

[Machjo]

Okay....

while you are at it, why don't you legislate religious meetings, political parties, professional associations, and special interest groups out of existence....

Ever hear of the right to assemble, the right of association?

Your solution is very popular in your average fascist state.....

My God, you people don't even have a clue how much of your wealth and freedom you owe to unions......and with the centralization of capital, the growing power of corporations, the stagnation of real-wealth growth of all but the most rich, the increasing gap in wealth.....unions are even more significant and necessary.

You'd cut your own throat.

I've been a union man all my life, I have no understanding of anti-union hatred.

Yes, sometimes they get carried away.......I'd be the first to admit that.

But we are a much better society with unions than without unions.

If the argument is freedom, then how about this: let unions exist de facto, but not officially or de jure. In other words, they can exist and they can strike, but strikers can get fired for contract violation. That way we have freedom on all sides. But with this, individual workers should be free to join or not join the union too. And in combinaiton with the option I proposed above, or some similar option, the purpose of the union would become obsolete and so it would disappear anyway. But I suppose you're right. we shouldn't legislate them out of existence; we should just render them redundant instead, with the same result.

 

[rd1331]

Inflation is a global issue. OPEC will continue a very unstable (bloody crooks) rise in crude prices, same will happen with all other global products. This will cause them to be worth more and more against the Canadian dollar. In the end creating an inflation rate through global products which will cause Canadian only products to rise in price.

 

[rd1331]

I'm not arguing your other facts about inflation, as I said the idea is good, unfortunately/fortunately we are very linked to the global market, and because of this it would not work

 

[Machjo]

You cannot have a sustained inflation rate of 0%. Sorry should have explained it better.
Think of it this way. Canada has a sustained inflation rate of 0%. All the other countries average 3%, lets say there is a global currancy called the UN dollar, or whatever. Lets talk one product. Lets say Coke and it sells for $1 Canadian today and $1 US today. Also lets say Coke is based out of the US and its price is attached to the global market. On the global market the price stays the same. So next year a coke, still worth $1 UN, now costs us 1.03 canadian. Then next year 1.06 canadian and such. You can see where it goes. So every year Canada would have an inflation rate brought on by the global economy. Unfortunately/Fortunately, we have to think global now, and you can not make a dramatic change like 0 inflation without huge consequences.

The 0 Interest rate is a lot more complicated so let me think of a better way to explain it.

I'm sorry, but you're not helping your case here. I'd be for a global currency too (it would certainly eliminate the highly paid middlemen making money in the currency markets but making no productive contribution to the economy otherwise (i.e parasite)). But I can guarantee that no country would want to merge their currency with ours if inflation is ripe. Even the EU expected its members to keep inflation within certain limits prior to integration to the Euro. To integrate currencies is a tricky process, so if a number of countries are experiencing 0 inflaiton, it wil be much easier for them to integrate to a new global currency, or at least shared regional currency, than if all their currencies are flying unpredictably all over the place. How else are we to assess equivalences in such a tricky transition?

It seems that the more you argue for inflation, the more you're strengthening the cause of 0 inflaiton.

 

[Machjo]

Inflation is a global issue. OPEC will continue a very unstable (bloody crooks) rise in crude prices, same will happen with all other global products. This will cause them to be worth more and more against the Canadian dollar. In the end creating an inflation rate through global products which will cause Canadian only products to rise in price.

Don't forget, OPEC is basd on oil, and Canada has oil too. So if their fuel prices go up, so do ours. Ever thought of that?

And as for being crooks, if you're suggesting that we should have a say in OPEC's oil prices, through whom? The UN? OK, fine, fair is fair. If we have a say in OPEC's oil prices, then OPEC will have a say in Alberta's oil prices. Do I read a self-interested double standard here? No bias on your part?

 

[Machjo]

I'm not arguing your other facts about inflation, as I said the idea is good, unfortunately/fortunately we are very linked to the global market, and because of this it would not work

It could work with tough love. It could also be the basis for a future world currency, which wuld help to hedge against economic instability in global markets. To inflate now simply pushes forward the inevitable. It's simply counterproductive. So why can't voters see this? Education! We need to invest more in educaiton. If we want to be a democracy, then we need to ensure that the entire populaiton is educated. If not, there is no democracy except in name and outward form.

 

[rd1331]

This is halarious. Do you know anything about economics. You say I'm strengthening the case but obviously you have no idea when it comes to economics.

Keeping Inflation at 0 means that prices do NOT go up. That is the basis of inflation. $1 today will buy the exact same amount as $1 ten years from now. If oil continues its steady climb on a global mark, global products that are based on oil (basically everything) will continue to increase in price year after year. Without inflation in Canada every year these products will become more and more expensive. So yes Canada having oil has absoluately nothing to do with 0 inflation, the price of oil is set globably, and globably they have inflation.

You say I'm not helping my case. But you just said. So if their fuel prices go up, so do ours. So if $1 dollar today buys 1 Gallon and oil continues its climb, weather or not we have oil, to say $1 buys 1/2 Gallon. That means that $1 dollar today is not worth the same as tomorrow, it doesn't have the same buying power. Which means there is inflation.

In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.[1] The term "inflation" once referred to increases in the money supply (monetary inflation); however, economic debates about the relationship between money supply and price levels have led to its primary use today in describing price inflation.[2] Inflation can also be described as a decline in the real value of money—a loss of purchasing power.[3] When the general price level rises, each unit of currency buys fewer goods and services. A chief measure of price inflation is the inflation rate, which is the percentage change in a price index over time.[4]

 

[Tonington]

Okay....

while you are at it, why don't you legislate religious meetings, political parties, professional associations, and special interest groups out of existence....

Ever hear of the right to assemble, the right of association?

Your solution is very popular in your average fascist state.....

My God, you people don't even have a clue how much of your wealth and freedom you owe to unions......and with the centralization of capital, the growing power of corporations, the stagnation of real-wealth growth of all but the most rich, the increasing gap in wealth.....unions are even more significant and necessary.

You'd cut your own throat.

I've been a union man all my life, I have no understanding of anti-union hatred.

Yes, sometimes they get carried away.......I'd be the first to admit that.

But we are a much better society with unions than without unions.

+1

Quoted for truth.

Infrastructure that I would like to see spending increases for:
Like missile, water treatment. National transportation/mass transit infrastucture. Energy efficiency, in all public buildings, and incentives for private buildings. Education. Military, before any of you poo-poo think twice about who does the heavy lifting in any national emergency (hurricanes, ice storms, etc.)

Any sort of infrastructure spending is a good stimulus. It's not like paying people to dig ditches and fill them in and dig them again. Build things that serve useful purpose, and there is no shortage of projects like that. Maybe Saint John can have a clean harbour too. If Halifax can do it...

 

[scratch]

This is halarious. Do you know anything about economics. You say I'm strengthening the case but obviously you have no idea when it comes to economics.

Keeping Inflation at 0 means that prices do NOT go up. That is the basis of inflation. $1 today will buy the exact same amount as $1 ten years from now. If oil continues its steady climb on a global mark, global products that are based on oil (basically everything) will continue to increase in price year after year. Without inflation in Canada every year these products will become more and more expensive. So yes Canada having oil has absoluately nothing to do with 0 inflation, the price of oil is set globably, and globably they have inflation.

You say I'm not helping my case. But you just said. So if their fuel prices go up, so do ours. So if $1 dollar today buys 1 Gallon and oil continues its climb, weather or not we have oil, to say $1 buys 1/2 Gallon. That means that $1 dollar today is not worth the same as tomorrow, it doesn't have the same buying power. Which means there is inflation.

In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.[1] The term "inflation" once referred to increases in the money supply (monetary inflation); however, economic debates about the relationship between money supply and price levels have led to its primary use today in describing price inflation.[2] Inflation can also be described as a decline in the real value of money—a loss of purchasing power.[3] When the general price level rises, each unit of currency buys fewer goods and services. A chief measure of price inflation is the inflation rate, which is the percentage change in a price index over time.[4]

Thank you for the tutorial.

 

[rd1331]

Canada would have to convince the entire world to go to 0 inflation for 0 inflation to work. Without that 0 inflation would just devalue are currency and ruin our economy.

 

[scratch]

Canada would have to convince the entire world to go to 0 inflation for 0 inflation to work. Without that 0 inflation would just devalue are currency and ruin our economy.

I'll let Machjo do this.

 

[Machjo]

This is halarious. Do you know anything about economics. You say I'm strengthening the case but obviously you have no idea when it comes to economics.

Keeping Inflation at 0 means that prices do NOT go up. That is the basis of inflation. $1 today will buy the exact same amount as $1 ten years from now. If oil continues its steady climb on a global mark, global products that are based on oil (basically everything) will continue to increase in price year after year. Without inflation in Canada every year these products will become more and more expensive. So yes Canada having oil has absoluately nothing to do with 0 inflation, the price of oil is set globably, and globably they have inflation.

You say I'm not helping my case. But you just said. So if their fuel prices go up, so do ours. So if $1 dollar today buys 1 Gallon and oil continues its climb, weather or not we have oil, to say $1 buys 1/2 Gallon. That means that $1 dollar today is not worth the same as tomorrow, it doesn't have the same buying power. Which means there is inflation.

In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.[1] The term "inflation" once referred to increases in the money supply (monetary inflation); however, economic debates about the relationship between money supply and price levels have led to its primary use today in describing price inflation.[2] Inflation can also be described as a decline in the real value of money—a loss of purchasing power.[3] When the general price level rises, each unit of currency buys fewer goods and services. A chief measure of price inflation is the inflation rate, which is the percentage change in a price index over time.[4]

Key word: general. So a rise in gas prices could be countered by the government promoting deflation in other areas as a counterbalance leading to 0 inflation OVERALL. Some ways this could be done would be through reduced govt spending combined with no overall tax decrease. If the government gets more in taxes than it spends, it's taking money out of the economy. If it uses that money to pay the debt, then it's also helping to lower interest rates. So it is doable, though I admit it might be political suicide owing to voter ignorance.

Again, that's why we need more spending on education.

 

[Machjo]

It is possible for Canada to have 0 inflation eve if other countries are inflating.

 

[rd1331]

And How. Explain this please. The only way is for Canada to halt all imports and exports and produce everything in house.

 

[scratch]

And How. Explain this please. The only way is for Canada to halt all imports and exports and produce everything in house.

O.K.

 

[rd1331]

Gas is linked to everything. Everything gets transported on something that Uses Gas. If the price of gas goes up, the price of everything will eventually go up. Unless the product you want is within walking distance and doesn't use any electricity or and plastics, basically has to be grown in the ground. And harvested by hand.

I agree with the paying down the debt.

We need more money spent on education so you can learn economics.

 

[rd1331]

Cars run on gas. Wood transported by vehicles that use gas and cut down by vehicles that use gas. Gold....extracted by vehicles that use gas. Everything is linked to gas. Plastic is made from oil. Everything we have today has something that has touched directly or indirectly the gas industry.

And i'm not only talking gas. Global rates are set on all resources....uranium..gold..silver...nickel..everything is linked on a global market. And on a global market averaged out they increase in price each year. That in its most general form is Inflation.

 

[Machjo]

And How. Explain this please. The only way is for Canada to halt all imports and exports and produce everything in house.

As I mentioned, by reducing government spending below government revenue, or inversely by increasing governemnt revenue beyond governemnt spending, the governemnt would essentially be putting the brakes on inflation by taking money out of circulation. Such a policy would be beneficial in the long term, but I admit would be tough initially since people are used to constant raises to match inflation. Obviously such a policy would have to put a stop to raises too, so the shock would actually be more psychological than economic.