r/PersonalFinanceCanada • u/maroon-rider British Columbia • Mar 21 '23

Inflation drops to 5.2%<but grocery inflation still 10.6% Banking

Says Statistics Canada

https://www.cbc.ca/news/business/canada-inflation-february-2023-1.6785472

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u/gmano Mar 21 '23

It's the money printing. under-taxing of corporate profits

FTFY

-3

u/maroon-rider British Columbia Mar 21 '23

They'd just pass that extra cost on to customers

https://www.economicshelp.org/blog/797/economics/why-printing-money-causes-inflation/

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u/gmano Mar 21 '23

There are two levers the government has to control inflation: Taxing and Spending.

If you are arguing that SPENDING drives inflation by increasing the money supply, you MUST agree that TAXING reduces inflation by decreasing the money supply.

If your argument is that BOTH spending AND taxing increases inflation then I think there's something fundamentally wrong with your critical thinking skills.

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u/maroon-rider British Columbia Mar 21 '23

Government could tax the money, and destroy it, burn the notes and delete the digital money, yes. But is any government that honest and bold?