Do *you* know how inflation works? | This Hour Has 22 Minutes

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#inflation #comedy

[@christophercrowder872]

I wish this kind of intelligent satire was on the air down here in the U.S.

[@qtdcanada]

From north of the border, it seems that for the last 20-25 years or so there have been too many self-righteous people in the US for intelligent satire to work. It has now become 'either my way or no way'! Satire requires a bit of give and take.

[@christophersnyder1532]

Thanks for the laughs, wait a minute, was that a Pee Wee Herman voice he just made?
Take care, and all the best.

[@TeaLatteToGo]

😅 but for real,

[@AT-vj1zd]

This skit was a fantastic opportunity to expose the banks. The primary beneficiaries of an inflationary economy. RBC's net profit (not gross revenue) for every single month since the pandemic has been a whopping $1 billion. They made that off the backs of working class Canadians. But no political party has the spine to call it out. The banks rule Canada and Canadian lives. The banks love the skyrocketing price of real estate because that means larger mortgages, greater debt, record breaking profits. But hey this is 22 minutes, they like to keep it light and funny. The joke is on me and other Canadians who are trapped in this bubble.

[@tinaperez7393]

Sometimes their satire is a little better at actually educating. The bank robber sketch comes to mind as a very good one for that. 👍

[@jannetteberends8730]

You realize the bank must also pay higher rent to the people lending the money?

[@johnnyhatesjazz7434]

So very true.

[@TellyMan200]

Sad but true , inflation linked to rates linked to gdp

[@RobertH-qb5it]

Was this filmed at the Clown Party Canada convention? Because that is their leader's interpretation of economics🤣🤣🤣🤣🤣

[@MaliaSoul]

😂

[@shannondawn44]

🤣

[@Jopoool]

MV = PQ
Where:
• M = Money supply
• V = Velocity of money (how quickly money is spent)
• P = Price level
• Q = Output (real GDP)
If M increases and Q (output) remains constant or grows slowly, P (price level) rises, leading to inflation. The extent of inflation depends on factors like demand, supply elasticity, and the velocity of money.

[@jannetteberends8730]

Inn this case it was a lower output.

[@captainpoil]

🤣🤣🤣

[@a64738]

Sadly this is not satire...

[@paulristow3454]

I'm laughing AND cringing. So many Canadians really seem to have this level of (mis)understanding about finance & the economy.

[@thinkingimpaired5663]

The Trudeau economy, TrueFlation

[@ArrrrrrPeeee]

I cant wait for the plug to get pulled on this garbage 😂🎉😂

[@studentofsmith]

Inflation occurs when there is an expansion in the supply of money relative to the amount of goods and services available for purchase. More money chasing the same amount of goods and services means prices rise as people bid against each other to secure those resources. One of the primary levers the Bank of Canada uses to reduce inflation is to increase interest rates. This discourages people from borrowing and reduces the supply of money in circulation.

[@EdwinLaarz]

And the new money comes from where? Do you subscribe to the "guvment prints more" group or the "banks create it through fractional reserve" group?
Your response was textbook, I'm hoping you can do more than quote what others have written.

[@studentofsmith]

@@EdwinLaarz The later. Raising interest rates to discourage borrowing wouldn't reduce the supply of money in circulation if borrowing didn't effectively create new money in the first place.

[@jannetteberends8730]

In this case it’s not more money, but less output. The supply went down. Caused by Covid and the war in Russia.

[@studentofsmith]

@@jannetteberends8730 That would do the trick as well. It's usually an expansion of the money supply but a reduction in the availability of goods and services would have the same effect.
Unfortunately a reduction in goods and services is worse. While those with cash reserves lose out and those in debt are the winners when it comes to inflation at least with an expansion of the money supply overall wealth is not decreased (unless the inflation becomes so extreme money starts to loses it's utility as a medium of exchange). An actual reduction in productive output negatively impacts real wealth and living standards.

[@MurderBong]

Stabilize… You guys are funny. I would rather go to a Diddy party than try to apply for a loan again. One place i get fk’d less.