Pamela on Nostr: **Trudeau's New Advisor: A Closer Look Through the Lens of Austrian Economics** Prime ...
**Trudeau's New Advisor: A Closer Look Through the Lens of Austrian Economics**
Prime Minister Justin Trudeau's recent appointment of a new economic advisor with a background at the Bank of Canada has raised eyebrows, especially among those familiar with Austrian economics. This perspective criticizes the very foundations of modern central banking, particularly the manipulation of money supply.
**The Austrian Critique of Central Banking:**
From an Austrian economics viewpoint, the advisor's tenure at the Bank of Canada symbolizes everything that's wrong with modern monetary policy. Austrian economists argue that central banks, like the Bank of Canada, engage in what they call "inflation" – not just in terms of rising prices, but fundamentally as an increase in the money supply. This advisor, during his time, was part of a system that artificially expanded the money supply through quantitative easing (QE), which Austrians see as tantamount to counterfeiting.
**Impact on Purchasing Power:**
The Austrian school would argue that this advisor's policies directly contributed to the erosion of purchasing power for the average Canadian. By increasing the money supply, the central bank dilutes the value of each dollar, leading to what Austrians describe as the "Cantillon Effect" – where new money benefits those closest to its creation (like banks and government) before it filters through to the general public, causing inflation.
**Public Sentiment and Economic Reality:**
Recent sentiments on platforms like X reflect a growing dissatisfaction with these policies. Critics, viewing through an Austrian lens, see this not just as economic policy but as a form of wealth transfer from the populace to the government and its allies. They argue that while the government and central bank might claim to fight inflation, their actions (like QE) are inherently inflationary, undermining the value of money.
**The Austrian Prescription:**
Austrian economists would advocate for a complete overhaul. They would argue for a return to a system where money's value isn't manipulated by central authorities but is instead determined by market forces, like #Bitcoin. This would eliminate the ability of central banks to "print money," thus theoretically stabilizing purchasing power.
**Looking Forward:**
With this new advisor, Trudeau's economic strategy might be seen as doubling down on the very policies Austrian economists criticize. For those who follow this school of thought, this appointment could signal more of the same – continued erosion of the Canadian dollar's value, further wealth transfer through inflation, and a deepening of economic distortions caused by artificial credit expansion.
Prime Minister Justin Trudeau's recent appointment of a new economic advisor with a background at the Bank of Canada has raised eyebrows, especially among those familiar with Austrian economics. This perspective criticizes the very foundations of modern central banking, particularly the manipulation of money supply.
**The Austrian Critique of Central Banking:**
From an Austrian economics viewpoint, the advisor's tenure at the Bank of Canada symbolizes everything that's wrong with modern monetary policy. Austrian economists argue that central banks, like the Bank of Canada, engage in what they call "inflation" – not just in terms of rising prices, but fundamentally as an increase in the money supply. This advisor, during his time, was part of a system that artificially expanded the money supply through quantitative easing (QE), which Austrians see as tantamount to counterfeiting.
**Impact on Purchasing Power:**
The Austrian school would argue that this advisor's policies directly contributed to the erosion of purchasing power for the average Canadian. By increasing the money supply, the central bank dilutes the value of each dollar, leading to what Austrians describe as the "Cantillon Effect" – where new money benefits those closest to its creation (like banks and government) before it filters through to the general public, causing inflation.
**Public Sentiment and Economic Reality:**
Recent sentiments on platforms like X reflect a growing dissatisfaction with these policies. Critics, viewing through an Austrian lens, see this not just as economic policy but as a form of wealth transfer from the populace to the government and its allies. They argue that while the government and central bank might claim to fight inflation, their actions (like QE) are inherently inflationary, undermining the value of money.
**The Austrian Prescription:**
Austrian economists would advocate for a complete overhaul. They would argue for a return to a system where money's value isn't manipulated by central authorities but is instead determined by market forces, like #Bitcoin. This would eliminate the ability of central banks to "print money," thus theoretically stabilizing purchasing power.
**Looking Forward:**
With this new advisor, Trudeau's economic strategy might be seen as doubling down on the very policies Austrian economists criticize. For those who follow this school of thought, this appointment could signal more of the same – continued erosion of the Canadian dollar's value, further wealth transfer through inflation, and a deepening of economic distortions caused by artificial credit expansion.