GDP is calculated three ways and they should all come to the same answer.
Let me just say, I really appreciate someone who takes their time and writes a well reasoned argument or point. Much better than the talking points or gotchas that are all too common on the internet today.
The first is what you are alluding to, but one of the factors is the cost of the material to create the goods. This can be eroded by inflation and can drop the gdp as a result.
Very true.
The second way is based on incomes.
The third way is based on goods created compared to what can be consumed by the population and incomes.
Agreed.
Doesn't matter what way you measure it, they should come to the same answer. OECD utilizes the first method.
Most metrics come to a very similar number.
The government's ability to print money to create the debt and release it into the economy will cause inflation. If inflation goes too high, what we have/get paid is less. There is a point where pensions like ours will become insolvent. The members that pay in can't pay in enough to maintain payments out to match indexed inflation. They either close the fund or stop indexing. Both are catastrophic to the pensioner in a high inflation environment. Workers have the opportunity for their wages to catch up provided there isn't hyper inflation.
This is where we are going to stop agreeing. Printing money doesn't necessarily cause inflation. Case in point, since 2010, the money supply has never been higher. Inflation didn't skyrocket. In the past year, the money supply globally has skyrocketed, inflation to date has not followed the same trajectory.
Why is that right now? Because there is also massive downwards pressure on prices due to recessions. Lower wages, lower spending, large stockpiles of inventory which needs to be sold at a discount, there are factors that counter the effect of printing all this money.
In terms of the Canadian dollar, which can crater if too much is printed, remember, currencies are judged off of each other, based on the underlying economy they represent, interest rates, and scarcity. Interest rates being low, and less scarcity should mean it would be falling, but it isn't. Why? Because currencies are judged off of each other, and every other major currency is doing the same thing. The EURO, the USD, everyone is just printing money like mad right now.
Anyways, we shouldn't be comfortable with the amount of debt we added. I believe we needed to react, but not to that extent. I really liked the cerb and mortgage deferral program. I dislike the cews.
No one should be happy with it, but at the end of this its better that the economy doesn't collapse.
Anyways, what is fine is done, but we need to figure out how much of our future was taken away and find a way to replace it so Canada and it's pensioners can stay solvent
So long as inflation is under control and debt spending isn't insane Canada should be okay. We will need a roadmap to get back on track though, but its hard to do so when still in the crisis that is causing the spending in the first place.
Is that like trudeau saying he took on all this debt, so I wouldn't have to?
That's some funny shit right there. And people wonder why I'm so sarcastic.
