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I get the point, and agree with it somewhat. However, this truly seems like a perfect example of treating the symptom while ignoring the cause. Since this is a

by lowkey 16y ago

I get the point, and agree with it somewhat. However, this truly seems like a perfect example of treating the symptom while ignoring the cause. Since this is all theoretical, wouldn't it make more sense to just stop governments from stealing the wealth of the people through the hidden 'inflation tax?'

ramchip 16y ago
stop governments from stealing the wealth of the people You're appealing to emotions, not logic. It's not a good way to make decisions.
goodside 16y ago
Vague complaints about "inflation tax" do not contribute anything constructive to monetary policy discussions. No one disputes that excessive inflation is a regressive and unsustainable tax. Currency collapse is almost always caused by, or at least mediated through, governments using inflation to pay debt (or, more accurately, to partially default on debt). Preventing this is the primary reason modern central banking exists. Even those opposed to this solution still support its goal; the "End the Fed" movement wants less inflation, not more. Nobody--whether left, right, liberal, or fascist--thinks inflation is a good way to finance government. The only disputes are how to prevent it from doing so, as those in office have constant incentive to favor short-term stimulus over long-term stability, and how to balance such restraints against other goals like preventing deflationary shocks and making monetary inflation reflect growth in the real economy. Suggesting we stop taxing with inflation instead of minimizing its drawbacks is no more helpful than saying, "We should start preventing murders instead of building prisons," or, "Let's reduce the violence in Afghanistan instead of endangering more of our soldiers."
jackfoxy 16y ago
The fatal flaw in democracy, as identified by Ben Franklin, Alexis de Toqueville, and Karl Marx, is the mass of voters will eventually elect to raid the treasury. This is a systemic problem. The short-coming of republican government is the humans entrusted with preserving it will undermine the rule of law in various ways, suggesting this ideal form cannot be achieved. Modern western representative democracies today face a two-pronged problem. The people have voted themselves an ever-more-generous welfare state and the state bureaucracies, for many complex reasons, have failed in their oversight responsibilities. The most likely scenario is we muddle through it somehow and life goes on.

by lowkey 16y ago

ramchip 16y ago

stop governments from stealing the wealth of the people You're appealing to emotions, not logic. It's not a good way to make decisions.

goodside 16y ago

Vague complaints about "inflation tax" do not contribute anything constructive to monetary policy discussions. No one disputes that excessive inflation is a regressive and unsustainable tax. Currency collapse is almost always caused by, or at least mediated through, governments using inflation to pay debt (or, more accurately, to partially default on debt). Preventing this is the primary reason modern central banking exists. Even those opposed to this solution still support its goal; the "End the Fed" movement wants less inflation, not more. Nobody--whether left, right, liberal, or fascist--thinks inflation is a good way to finance government. The only disputes are how to prevent it from doing so, as those in office have constant incentive to favor short-term stimulus over long-term stability, and how to balance such restraints against other goals like preventing deflationary shocks and making monetary inflation reflect growth in the real economy. Suggesting we stop taxing with inflation instead of minimizing its drawbacks is no more helpful than saying, "We should start preventing murders instead of building prisons," or, "Let's reduce the violence in Afghanistan instead of endangering more of our soldiers."

jackfoxy 16y ago

The fatal flaw in democracy, as identified by Ben Franklin, Alexis de Toqueville, and Karl Marx, is the mass of voters will eventually elect to raid the treasury. This is a systemic problem. The short-coming of republican government is the humans entrusted with preserving it will undermine the rule of law in various ways, suggesting this ideal form cannot be achieved. Modern western representative democracies today face a two-pronged problem. The people have voted themselves an ever-more-generous welfare state and the state bureaucracies, for many complex reasons, have failed in their oversight responsibilities. The most likely scenario is we muddle through it somehow and life goes on.