{"id":32574,"date":"2018-03-20T08:40:17","date_gmt":"2018-03-20T13:40:17","guid":{"rendered":"http:\/\/olduvai.ca\/?p=32574"},"modified":"2018-03-20T08:41:07","modified_gmt":"2018-03-20T13:41:07","slug":"poloz-to-queens-university-debt-slaves-dont-worry-about-the-poverty-effect","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=32574","title":{"rendered":"Poloz to Queen\u2019s University debt slaves: don\u2019t worry about the \u201cpoverty effect\u201d"},"content":{"rendered":"
\n

Poloz to Queen\u2019s University debt slaves: don\u2019t worry about the \u201cpoverty effect\u201d<\/a><\/h3>\n<\/div>\n
\"Poloz<\/div>\n
Kingston \u2013 Bank of Canada Governor Stephen Poloz got a warm welcome following a key policy presentation at his alma mater <\/i>last week<\/div>\n
\n

\u201cThese are exciting times,\u201d Poloz told a large crowd at Queen\u2019s University . <\/i>\u201cStudents here will shape the future. I cannot wait to see how it turns out.\u201d<\/p>\n

Afterwards, during a press conference with local and student media, Poloz<\/span> brushed aside speculation about a possible \u201cpoverty effect\u201d caused by rising interest rates.<\/p>\n

Poloz<\/span> cited a strengthening Canadian economy and downplayed suggestions that central bank rate-tightening cycles\u2014which crashed global stock markets in the early and mid-2000s\u2014would do so again.<\/p>\n

Yet while the extent of a \u201cpoverty effect\u201d in the overall economy may be open for debate, there are growing signs that central bank actions are impoverishing Canadian youth.<\/p>\n

Consider:<\/p>\n

Trickle down central banking<\/span><\/b><\/p>\n

During the 1980s, economists derided US President Ronald Reagan\u2019s policies\u2014which cut taxes in the hope that they would spur economic growth\u2014as \u201ctrickle down economics.\u201d<\/p>\n

Yet the Canadian government has adopted similar tactics.<\/p>\n

The Bank of Canada\u2019s \u201cwealth effect\u201d policies are intended to drive up asset prices in the hope that richer consumers will spend more, thus boosting the overall economy.<\/p>\n

For example, if a Queen\u2019s University economics professor sees his stock portfolio double, he might then buy extra latt\u00e9s at the campus Starbucks, thus creating more jobs.<\/p>\n

Sadly, the wealth effect hasn\u2019t been working for the country\u2019s youth\u2014 44% of the 4.5 million Canadians aged between 15 and 24<\/a> are out of work.<\/p>\n

Worse, trickle down central banking requires constant borrowing, at a pace faster than GDP growth.<\/p>\n

As Renaud Brossard <\/b>, executive director of Generation Screwed <\/b>noted recently<\/a>, such policies stick Canadian youth with nearly all of the country\u2019s debts.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Poloz to Queen\u2019s University debt slaves: don\u2019t worry about the \u201cpoverty effect\u201d Kingston \u2013 Bank of Canada Governor Stephen Poloz got a warm welcome following a key policy presentation at his alma mater last week \u201cThese are exciting times,\u201d Poloz told a large crowd at Queen\u2019s University . \u201cStudents here will shape the future. I […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[942,103,13228,19358,11073,943],"class_list":["post-32574","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-canada","tag-canada","tag-peter-diekmeyer","tag-poverty-effect-queens-university","tag-sport-money","tag-stephen-poloz"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32574","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=32574"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32574\/revisions"}],"predecessor-version":[{"id":32575,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32574\/revisions\/32575"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}