Good posting Kirkland, thanks for taking the time to try to explain it. So debt isn't ideal but as long as debt to gdp(I watched some beginner economics videos, so I I mostly know what that is :S) ratio isnt getting out of hand and gdp keeps growing everything is probably alright? So in the current environment/recession a smaller deficit or maybe even a balanced budget could make things worse because gdp could fall or grow slower so the debt to gsp ratio could get even worse or something along those lines? I assume that's what trudeau meant with his famous the budget will balance itself quote.


My pea brain doesn't quite understand the inflation bit, I'm probably missing something very obvious so feel free to make fun of me.

"If the government borrows a hundred dollars from you on January first this year and agrees to pay you one percent interest. Inflation runs at two percent over the year so government revenues increase by two percent without the government doing anything due to inflation. They then pay you a hundred and one dollars leaving them a dollar up and you a dollar down in real terms over the year but you're a dollar up in nominal terms."....

Why are government incomes up, I would still be paid the same and paying the same income tax so they still get the same amount of money that way, maybe I've got what inflation is all wrong, isn't it just the cost of things going up? Where do they the get the extra quid from? VaT maybe?