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Unless the inflation is caused by the government printing money. If 10 citizens each have $10, then there are $100 in the money supply. Now the government prin
by cmsmith 11y ago
Unless the inflation is caused by the government printing money.
If 10 citizens each have $10, then there are $100 in the money supply. Now the government prints $10. If no actual value was created with that $10, then the value of the dollar has to drop. Now all the citizens have $9.1 (real value) and the government has $9.1 (real value). This is the same as a 10% tax on wealth.
- thaumasiotes 11y agoFrom the given numbers, it sounds like a 9% tax.