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Printing money out of thin air also robs the productive part of the society out of their assets. A higher inflation without an actual increase in productivity (
by pesfandiar 10y ago
Printing money out of thin air also robs the productive part of the society out of their assets. A higher inflation without an actual increase in productivity (and thus investment returns) will reduce the value of everyone's assets. This sort of "Robin Hood" schemes have been executed by some populist governments, but I don't know of any which worked out well.
The only fundamental difference is taxing income to pay for welfare vs. taxing wealth.
- PrimalDual 10y agoSo the point in an economy with underutilized resources money printing does not necessarily translate money printing to inflation directly. More importantly, the US has carried out a huge money printing scheme: QE. The federal reserve bought a couple trillion of US debt de facto reducing the amount of outstanding debt. What I am arguing for is QE with a higher tolerance for inflation.