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Taxpayers still pay for fed expenditures, albeit indirectly. Expansionary fiscal policy -> inflation, and inflation is probably the biggest single tax on any o

by mises 7y ago

Taxpayers still pay for fed expenditures, albeit indirectly. Expansionary fiscal policy -> inflation, and inflation is probably the biggest single tax on any one.

notfromhere 7y ago
Inflation is a macro benefit to taxpayers.
- mises 7y ago
  Not necessarily. That has been the traditional economic opinion, but it has been challaneged as of late. Employers don't always raise wages, harder to save for retirement (unless you want to take higher risk in the stock market, your money shrinks in real value).
  - ChrisLomont 7y ago
    You don't need much risk in the stock market. Index funds have outpaced inflation since forever. It's easier to save for retirement since most people spend a lot of their life with fixed payment debt (mortgage, car, school, etc), and all of these become cheaper to service due to inflation. Thus the majority of the middle class has access to and uses debt, and has access to assets that outplace inflation. The counter to inflation is deflation, which has, due to deflationary spirals, been devastating to economies. There is not an inflationary spiral. This is why all central banks target small inflation.
ChrisLomont 7y ago
We've had very low inflation for some time. Deflationary spirals have caused more damage than low inflation by far historically. There's ample evidence central banking has reduced volatility across hundreds of countries, which is why every single country on earth has adopted it. Inflation also benefits borrowers, which is the middle class. It makes house payments relatively lower over time, for example, while wages tend to track inflation on the whole.
ChrisLomont 7y ago
>Taxpayers still pay for fed expenditures And they benefit from Fed gains, which are passed Treasury by law, and which happened in this case, of over $100 billion. That is why I linked the data. Feel free to link other data if you think it's relevant.

by mises 7y ago

Taxpayers still pay for fed expenditures, albeit indirectly. Expansionary fiscal policy -> inflation, and inflation is probably the biggest single tax on any one.

notfromhere 7y ago

Inflation is a macro benefit to taxpayers.

mises 7y ago
Not necessarily. That has been the traditional economic opinion, but it has been challaneged as of late. Employers don't always raise wages, harder to save for retirement (unless you want to take higher risk in the stock market, your money shrinks in real value).
- ChrisLomont 7y ago
  You don't need much risk in the stock market. Index funds have outpaced inflation since forever. It's easier to save for retirement since most people spend a lot of their life with fixed payment debt (mortgage, car, school, etc), and all of these become cheaper to service due to inflation. Thus the majority of the middle class has access to and uses debt, and has access to assets that outplace inflation. The counter to inflation is deflation, which has, due to deflationary spirals, been devastating to economies. There is not an inflationary spiral. This is why all central banks target small inflation.

ChrisLomont 7y ago

We've had very low inflation for some time. Deflationary spirals have caused more damage than low inflation by far historically. There's ample evidence central banking has reduced volatility across hundreds of countries, which is why every single country on earth has adopted it. Inflation also benefits borrowers, which is the middle class. It makes house payments relatively lower over time, for example, while wages tend to track inflation on the whole.

ChrisLomont 7y ago

>Taxpayers still pay for fed expenditures And they benefit from Fed gains, which are passed Treasury by law, and which happened in this case, of over $100 billion. That is why I linked the data. Feel free to link other data if you think it's relevant.