Barrhaven denizen

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Joined 1 year ago
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Cake day: June 10th, 2023

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  • The Canadian govt is the primary creator of Canadian dollars.

    When the federal govt runs a deficit of say $1B, that’s a surplus of $1B in the private sector. $1B more spent into industry than collected in taxes. Good times for the private sector.

    When the federal govt runs a surplus of $1B, that is a deficit of $1B in the private sector. $1B more collected in taxes than spent. This is an absolute disaster for the economy.

    When you consider the above, you can see how ridiculous it is for the federal govt to run a balanced budget or surplus. A balanced budget is a strongly recessionary position, choking off economic growth in the private sector.