If there is a need for public infrastructure, services, etc. and we have the resources, labour, etc. to fulfill the need, then the money can be created. The government is not a household: Money is created when the federal government spends. Monetary inflation can lead to price inflation, but as long as money is being created for the federal government to spend on productive, worthwhile and useful purposes, within ecological limitations and material economic constraints, then it isn’t really a problem.
I checked the Bank of Canada reports. They bought about $340 billion in federal bonds during the pandemic to support government spending. StatsCan data shows inflation still climbed to 8.1 percent by June 2022. That fits the idea that real constraints like labour and supply can turn monetary expansion into price pressure. The open question is whether current infrastructure plans are hitting those limits or actually expanding capacity.
If there is a need for public infrastructure, services, etc. and we have the resources, labour, etc. to fulfill the need, then the money can be created. The government is not a household: Money is created when the federal government spends. Monetary inflation can lead to price inflation, but as long as money is being created for the federal government to spend on productive, worthwhile and useful purposes, within ecological limitations and material economic constraints, then it isn’t really a problem.
I checked the Bank of Canada reports. They bought about $340 billion in federal bonds during the pandemic to support government spending. StatsCan data shows inflation still climbed to 8.1 percent by June 2022. That fits the idea that real constraints like labour and supply can turn monetary expansion into price pressure. The open question is whether current infrastructure plans are hitting those limits or actually expanding capacity.