Apples and Inflation
Kerby Anderson
Today the U.S. is getting a new president. Soon, Canada will be getting a new prime minister. The new prime minister may be Pierre Poilievre. He was recently asked what steps he would take to fix the damages done from inflation. Here is his answer:
“First and foremost, stop the overspending. Inflation, high taxes, deficits, high interest rates, are all symptoms. The disease is overspending. When governments spend too much money there’s only three ways to get it. One is to raise your taxes. The other is to borrow, which means that they’ll tax you more later on. And the third way is to print money. Now printing money seems like a painless way to pay for things.”
He then explained, “If you have 10 apples and $10 in the economy, it’s a buck an apple. If you double the number of dollars in the economy to 20, you still only have 10 apples, You’re not twice as rich. It’s just that each apple costs twice as much. And that is a tax on the working people because it chews up the purchasing power of your paycheck only to pay for government’s excessive government spending. And it balloons the asset values of the billionaires so it’s a real transfer from the have-nots to those who have yachts. Inflation is the worst and most immoral tax. It always results from government creating cash.”
His answer was both clear and correct. When government spends more than it takes in, the usual answer is to print more money. It really isn’t that complicated. We just need more people in leadership like him.
We need more politicians who understand why we have inflation and can explain the problem to the citizens. I must applaud his clear explanation and common-sense solution. We need more Canadian and American leaders like him.
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