Keith Evans
2 min readApr 3, 2023

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"They’re printing and spending billions on “inflation relief” for the poor. That’s right — they’re going to fight inflation by causing more inflation."

This assumes facts not in evidence, namely that money creation automatically creates inflation. It does not and has not since the world left the failed gold standard behind in its evolution.

They’re pushing the cost of inflation unto the hard-working middle class by raising interest rates.

Governments raising interest rates cause another big problem too: It makes the government’s debt more expensive to service.

While both of these statements are true, only the first will have any consequence for Canadians, as their government is, like the US, a sovereign currency creator and can afford whatever rate it decides upon since it does not need to "borrow" back the currency it has an infinite supply of. Conflating this infinite ability to create currency with our limited powers as "users" of the currency is the #1 mistake most people make when discussing or even thinking about econ at the federal level.

However, it can't be ignored that the higher rates certainly benefit "savers" and investors by giving them a safe harbor for the mostly unearned dollars that requires no risk. As many economists believe, if their money is at the heart of the inflation problem, the tried and true method of averting that is via taxation, not rewarding their largess further. This, however, should never be confused with "funding" spending by the currency-creating government that never needs funding.

"This is what happens when you vote for amoral corporatist politicians."

As long as you insist on framing the discussion in the oppressors' language, you will not win the argument. You would be wiser to make the wealthy irrelevant to the common welfare than railing against politicians who are simply following the predominant thinking of trickle-down that has infected every segment of our economy, right down to the way economics is taught.

Beyond controlling the net money supply in the private sector there is no connection between taxation/revenue and the ability to spend for the public purpose at the federal level, in Canada or the US. Austerity for the masses is the ultimate goal that can only be realized by propagating a common delusion about how money is created and directed. Anything that can be resourced in the private sector is affordable to our governments as long as it is priced in the currency they are empowered to create.

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Keith Evans
Keith Evans

Written by Keith Evans

Meandering to a different drummer.

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