I am a new home buyer in New Brunswick Canada, and I am purchasing a new bungalow with an unfinished basement. I had an inspector come in and he noticed that there is only a piece of insulation stuffed between each rim joice. The inspector wants the contractor to put vapor barrier plastic between the the rim joice and insulation in the basement, and seal it tight with a special black caulk that doesn't dry. The inspector said that if you don't do that, the heat and moisture passing through that area will rot the wood, and jack up the heating bills.
The contractor refused, and said that by sealing the rim joice with vapor barrier, the house won't be able to breathe, and the ensuing condensation buildup on the rim joice wood will make it rot.

I have a damned if you do, damned if you don't situation. Who is right?