Having caused a problem, they present themselves as a solution to the problem. Their solutions are typically counterproductive—stupid, actually. Taxing grocery stores adds to their costs. If they’re to stay in business, those taxes must be passed on to the consumer.
Trudeau is a criminal personality who should be punished for the evil he’s doing. On the other hand, he was popularly elected, largely because he has name recognition from his nominal father and good looks from Fidel Castro, who’s probably his actual sire. In any event, he’s apparently what the majority of Canadians must prefer…
International Man: Thanks to rampant currency debasement, the price of everything has gone up recently.
As the pain from inflation becomes a normal part of life in places like the US and Canada, there are growing calls for politicians to “do something.”
Recently, Canadian Prime Minister Justin Trudeau threatened to tax grocery stores if they don’t lower their prices, accusing them of causing inflation and profiting from higher prices.
What’s your take on this?
Doug Casey: Trudeau epitomizes, in many ways, all that’s wrong with the kind of people who go into politics. Things are as expensive as they are partly because taxes take 20% or 30% of everybody’s income when they earn it. Then, when they spend it, they pay another 10%, 20%, or even 30% in sales taxes and VATs. Add on the burden of regulations, which add to costs while decreasing the amount of production.
Taxes and regulations are disastrous. But the big thing is currency debasement. Governments are printing up money by the bushel because they believe in Modern Monetary Theory—paying for what they want by simply printing money.
People like Trudeau are the reason why food prices, and all kinds of prices, are as high as they are.
Having caused a problem, they present themselves as a solution to the problem. Their solutions are typically counterproductive—stupid, actually. Taxing grocery stores adds to their costs. If they’re to stay in business, those taxes must be passed on to the consumer.
Trudeau is a criminal personality who should be punished for the evil he’s doing. On the other hand, he was popularly elected, largely because he has name recognition from his nominal father and good looks from Fidel Castro, who’s probably his actual sire. In any event, he’s apparently what the majority of Canadians must prefer…
International Man: Many Third World countries have scapegoated business owners for rising prices.
The next step is for them to pass laws regulating how businesses can price their products and services.
Where does this all lead?
Doug Casey: As we’ve just discussed regarding Trudeau, government sticks its nose absolutely everywhere. That’s because the type of people who go into government love power, as well as making themselves famous and wealthy.
Almost all economic problems originate with government intervention. The solution isn’t more laws regulating how businesses can act and price their products but less laws. And by less, I mean none at all.
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