Inflation Explained and its Devastating Effect on the Poor and the Vulnerable - Brian Holdsworth

Pierre Poilievre asked 10 top government officials

where government money comes from and none of them had an answer

Brian Holdsworth explains Inflation 

and the devastating effect of inflation on the poor and vulnerable 

Here is the transcript of the partial podcast by Brian Holdsworth

 "He tries in a variety of ways, but he doesn't get a response, and eventually he hints at the answer which the other side doesn't seem to want to admit, which is that they are printing money, which is another way of saying they are conjuring money out of thin air money that doesn't exist, and then writing checks with it. Now we all know that counterfeiting money. Producing fake money and then paying for goods with it is illegal for obvious reasons. Firstly because it's fraudulent, it's dishonest and secondly because it can cause real harm to honest people by inserting money that doesn't actually exist into the economy. Printing money is the exact same thing, but it's when the government does it and we all know that only the government is allowed to do corrupt things.

Printing money means writing checks with money that doesn't exist to appease those who are on the receiving end of this fictitious money and the immediate effect of this kind of policy is that it creates inflation.

Now, I know this is exhausting. If you're not familiar with this terminology, so just bear with me. Stick with me. I'm going to start connecting some of these dots for you. Inflation this concept that I just described means that the money that exists in the economy is now worth less because it's been divided up by the addition of cash, fake cash by the government.

So the same amount of wealth still exists in the economy, but now there are more dollar bills which represents that wealth, which means that each dollar bill is now worth less. So if you have a savings account with $5000 in it, when inflation raises, the cost of everything that $5000 isn't worth $5000 anymore because it won't get you what $5000 used to get you.

This means that everything that the working class needs to provide for themselves costs more, making their vulnerability that much more severe. So things like food, fuel, housing, clothing, utilities, all of these things have now gone up in price, which, if you're among the working poor, is a huge injustice.

Here in Canada, the average house price has gone up 21% just in the past year, and it went up significantly more the year before that, when the pandemic started. This means that if you've been excluded from the housing market so far because of a lack of opportunity well, because you started with nothing, you're renting, you're working hard, you're trying to save up to eventually purchase a property of your own, that prospect may have just been ripped away from you because of reckless government policies that favor those who already have wealth at the expense of those who don't.

If I'm going to be totally candid about this, one way of looking at this is that the rich and the powerful, including government officials, threw the poor and vulnerable under the bus, so that they could quarantine themselves from a threat while the poor had to continue to find ways to sell their labor and take the risks that the rich didn't want to take as they hid in their homes that they already owned."

Brian Holdsworth