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By A Smith (anonymous) | Posted September 30, 2008 at 14:54:11
Ryan, life is about balance and all good things must be paid for, whether that refers to an individual, or a collection of individuals.
If you compare Canada's improving balance sheet with the Canadian dollar, you will see that as our equity has risen, so has our purchasing power.
Contrast this to the USA, where increased debt has been followed by decreased strength in their currency.
The same positive situation can be seen in both Russia and Brazil, where governments have made it their goal to run strong operating surpluses. In both cases, their GDP in (US dollar terms) has risen dramatically.
When Hamilton receives money from other cities in Ontario and Canada, it's the individuals of Hamilton who benefit from this money, not some separate entity known as "Hamilton".
Therefore, it is individuals who become more reliant on other individuals from outside of Hamilton to pay for what they consume.
If you could explain more fully the problems you see with this analogy, I would appreciate it.
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