• 0 Posts
  • 26 Comments
Joined 3 days ago
cake
Cake day: April 29th, 2025

help-circle



  • we got in this morass because the neoliberal state and its accompanying economy financialized every damn thing

    The problem is monetary policy, not deregulation. Deregulation of zoning and housing policy would actually prevent monetary policy from creating such a large housing bubble.

    Our Bank of Canada targets a 2% inflation, which means prices need to continuously rise as technology actively reduces goods prices, and we then exclude investments and housing appreciation entirely, and we do hedonic adjustments to discount goods inflation. Then there’s likely an element of shrinkflation, as company find tricks to cheapen products or degrade services, which lead to no inflation in the CPI but higher profits and then lower prices.

    So the money supply needs to grow via low interest rates, in order to provide a windfall to boomers to encourage them sell their real estate holdings, to create new bank loans, to increase the money supply, which turns into aggregate demand, in order to create inflation in the CPI.

    But we can’t build enough houses due to reverse neo-liberalism, so housing acts as liquidity sponges for cheap debt, and people hold them as investments in perpetuity since they think prices are always going to go up. Also as interest rates fall inflation falls, as interest expense is included in the CPI while housing appreciation is not, its a feedback loop due to its poorly constructed nature. The Bank of Canada now also buys half of all mortgage bonds to attempt to reverse this, so they’re actually printing money in order to cause deflation funnily enough, again due to the absurd way the CPI is constructed.














  • -Mass immigration and loosening regulation so temporary students can work 40 hours a week when we finally had wage pressure, as people asked for simple cost of living adjustments after massive asset price inflation and corporate revenue.

    -Allowing unions to be forced back to work, eliminating all bargaining for wages.

    -Ignoring the cost of living increases from QE and unfunded stimulus, by not taxing the rich a dime to pay for any of it.

    Am I wrong in any of this, I’d love a carefully thought out retort that isn’t Cons bad.