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Originally Posted by HRM
The most common thing people do when they don't want to or can't explain something said/written is to be sarcastic and insert juvenile smileys.
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The reason for my terse response is that I didn't say what you claimed I said. My point is simply that there's a tendency for government revenues to grow with inflation, since for example revenue streams like property taxes increase automatically with assessments (in practice municipalities rarely seem to cut rates to compensate). I mentioned "inflation" as a shorthand for "inflation averaged across the entire economy".
On balance inflation can be good or bad for a particular government, but it is wrong to claim to know a priori that charging 102% of a price in 2011 is "more expensive" for a government than 100% in 2009. This is what the media are doing when they talk in terms of price hikes.
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Inflation is actually very bad for governments in that people/businesses spend less resulting in lower HST revenues for provincial and federal governments.
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Plenty of healthy, growing economies experience inflation, ideally moderate inflation in the 1-3% range. This is what central banks try to encourage with interest rates. Your comment is easy to prove false -- in NS there have very likely been periods of simultaneous inflation and HST growth.
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And FYI. It is not "the HRM" anymore than it is the Montreal, the New York or the Vancouver. it is simply HRM.
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K.
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And please no more juvenile retorts and smiley faces. Make statements. Defend them if challenged. But please refrain from Smiley faces. If challenged would you draw a smiley face and hold it up to the committee you are defending a dissertation in front of?
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What a bizarre question! This isn't a defense, it's a post on an internet forum.
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