When this podcast was recorded on the morning of July 8, 2020 the Canadian government was projected to run a deficit for the year of $250 billion.  By the end of the day, after this podcast was recorded, the Finance Minister was projecting a deficit of $343 billion. That's a lot of debt, and it leads many to wonder how we'll ever pay it back. But a prominent economist, Dr. Stephanie Kelton, says the government shouldn't be concerned with massive deficits as long as they control the printing of their currency. In fact, she argues that the government should spend even more money so that more jobs are created until unemployment is no longer an issue, based on Modern Monetary Theory (MMT). On today's podcast, Doug Hoyes challenges this economic theory by explaining its unintended consequences and real life implications. Yes, we need to help those in need, but MMT may cause more problems than it solves.  You be the judge. He also outlines what our current deflationary environment means for individuals carrying debt. Tune in to this insightful episode!

 

Related Links:

 

Canada Emergency Response Benefit Statistics: https://www.canada.ca/en/services/benefits/ei/claims-report.html

Federal Finance Minister, Bill Morneau, in his Debt Management Report to Parliament: https://www.canada.ca/en/department-finance/services/publications/debt-management-report/2018-2019.html#s1

President Obama's Remarks on the Deficit and Economy: https://www.nytimes.com/2012/11/09/us/politics/transcript-of-president-obamas-remarks-on-the-deficit-and-economy.html

The Deficit Myth by Stephanie Kelton on Amazon https://amzn.to/2DaT54e

Can You Create Your Own Reality? Podcast #300: https://www.youtube.com/watch?v=PuiP9I6_cMg

Canadian Dollar Chart: https://yhoo.it/2AtXluG

Statistics Canada Consumer Price Index: https://www.statcan.gc.ca/eng/subjects-start/prices_and_price_indexes/consumer_price_indexes