BY DANNY LEROY
Inflation is Here T Ottawa has “manufactured” over half a trillion dollars through COVID-19, so brush up on your economics
here are many great manufacturing industries in Canada, among them petroleum, automotive, aerospace, food and beverage and yes, inflation. The success of the first four are a source of wealth. They stem from the ability of Canadian producers to profitably supply consumers in
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Canada and elsewhere, particularly those in the United States. The goods and services these Canadians produce and sell enable them to acquire all the other goods and services they wish to consume. The latter is the increase in the quantity of fiat money and credit manufactured by the Bank of Canada. This manufacturing activity is counterproductive — it destroys wealth by setting in motion an exchange of noth-
ing for something and diverting real resources away from wealth generators toward the holders of the newly created money. The first recipients can spend it on real goods for themselves without prior production of goods or services for others. In every country and in every era in which it has occurred, inflation has been a large, metastasizing problem. And not just an economic problem, but also a political and moral one.
