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I’m not sure whether a program financed by taxes (either existing tax revenue by cutting other spending or additional tax revenue by raising taxes or both) has
by ugh 16y ago
I’m not sure whether a program financed by taxes (either existing tax revenue by cutting other spending or additional tax revenue by raising taxes or both) has to lead to inflation. Could you elaborate on that point?
It’s certainly possible for certain tax increases to affect everyone or nearly everyone and consequently lead to a rise in the cost of living and inflation. Increasing the sales tax would certainly seem to increase the cost of living, making the stipend worth less. That is not the only way to finance such a program, though.
- JSig 16y agoYour right. I concede that without knowing the parameters of this program I can not claim that it will create price inflation. In an environment in which a private entity (federal reserve) is printing money willy-nilly it makes you pretty cynical.
- davidj 16y agono, your original assertion is absolutely correct. This will create price inflation, and this is exactly what happens every year in Alaska. Alaskans receive a dividend check every year for about $1500 to $3500 dollars, and every year around the time people begin to receive checks prices go up. I try to explain this to people up there and they don't seem to understand.