Discussion · Government Orders
Greg McLean Conservative
“Too much government spending and debt cause high inflation and higher interest rates. This makes life unfair. People who already own things get richer, while others cannot afford to buy a home until much later in life.”
“Mr. Speaker, the issue is that there is one pool of money in the world but a whole bunch of people dipping into it. As I pointed out, in Canada we have federal government debt, we have provincial government debt, we have consumer debt and we have corporate debt. All of these are in the same debt pool, so when there is a risk, it all goes up. When it all goes up, inflation happens. Inflation is going to happen as far as the expenses go on interest, but when the government excessively spends and runs huge deficits, it causes massive inflation in the economy, asset inflation in particular. One of the reasons we have what is called a K-shaped economy in Canada right now is that people who have assets have seen those assets inflate. People without those assets have gone without, so those people are waiting in line for a home that is going to take far longer to build. They cannot enter the housing market for a much longer period of time, into their mid-thirties and forties now, when it used to be in their mid-twenties and early thirties. This is a problem. This is the cause of inflation. This is a result of governments spending too much and thinking that somebody down the road will pay the bill. That is not going to happen.”
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Mr. Speaker, the issue is that there is one pool of money in the world but a whole bunch of people dipping into it. As I pointed out, in Canada we have federal government debt, we have provincial government debt, we have consumer debt and we have corporate debt. All of these are in the same debt pool, so when there is a risk, it all goes up. When it all goes up, inflation happens. Inflation is going to happen as far as the expenses go on interest, but when the government excessively spends and runs huge deficits, it causes massive inflation in the economy, asset inflation in particular. One of the reasons we have what is called a K-shaped economy in Canada right now is that people who have assets have seen those assets inflate. People without those assets have gone without, so those people are waiting in line for a home that is going to take far longer to build. They cannot enter the housing market for a much longer period of time, into their mid-thirties and forties now, when it used to be in their mid-twenties and early thirties. This is a problem. This is the cause of inflation. This is a result of governments spending too much and thinking that somebody down the road will pay the bill. That is not going to happen.