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This would hit people with savings in cash (or bonds), i.e. the middle class. The rich tend to have assets (or foreign holdings) which should be largely inflati

This would hit people with savings in cash (or bonds), i.e. the middle class. The rich tend to have assets (or foreign holdings) which should be largely inflation-proof.

va_coder 16y ago
..and old people on fixed income.
- melling 16y ago
  If you work for the post office or are a teacher, for example, your pension adjusts for inflation. Other govt jobs are similar? So, inflating out of the problem won't help here.
  - forgottenpaswrd 16y ago
    Not true. Your pension adjust for OFFICIAL inflation, I invite you to make a simple shopping cart on Excel with your most important expenses and compare with official figures. Official's is allays less(all govs massage the numbers as there is so much money at stake).
tbrownaw 16y ago
Approximately nobody holds physical cash these days, and I expect bank accounts would still pay interest like they do now (and higher interest if there was higher inflation). Bonds would also pay higher interest, you can see they're already priced to include expected inflation by looking at inflation-protected ones.
te_platt 16y ago
I admit to not taking my own idea here too seriously but still want to add a couple of points. There would only be inflation if the amount of money printed exceeded the production of new goods and services. Could congress control how much they spend? Not too likely but it's not very likely now and at least this way everyone including the poor would have a reason to resist excessive spending. Would the production of new goods and services increase? I think so. There would be other benefits as well, including: 1. Eliminating the costs of compliance with tax law. 2. Eliminating the costs of collecting the tax. 3. Severely cutting back the power of congress to control through tax policy.
Devilboy 16y ago
Nothing stops the middle class from buying gold instead of keeping their money in a cash account. Once you change the system the people will adapt.

This would hit people with savings in cash (or bonds), i.e. the middle class. The rich tend to have assets (or foreign holdings) which should be largely inflation-proof.

va_coder 16y ago

..and old people on fixed income.

melling 16y ago
If you work for the post office or are a teacher, for example, your pension adjusts for inflation. Other govt jobs are similar? So, inflating out of the problem won't help here.
- forgottenpaswrd 16y ago
  Not true. Your pension adjust for OFFICIAL inflation, I invite you to make a simple shopping cart on Excel with your most important expenses and compare with official figures. Official's is allays less(all govs massage the numbers as there is so much money at stake).

tbrownaw 16y ago

Approximately nobody holds physical cash these days, and I expect bank accounts would still pay interest like they do now (and higher interest if there was higher inflation). Bonds would also pay higher interest, you can see they're already priced to include expected inflation by looking at inflation-protected ones.

te_platt 16y ago

I admit to not taking my own idea here too seriously but still want to add a couple of points. There would only be inflation if the amount of money printed exceeded the production of new goods and services. Could congress control how much they spend? Not too likely but it's not very likely now and at least this way everyone including the poor would have a reason to resist excessive spending. Would the production of new goods and services increase? I think so. There would be other benefits as well, including: 1. Eliminating the costs of compliance with tax law. 2. Eliminating the costs of collecting the tax. 3. Severely cutting back the power of congress to control through tax policy.

Devilboy 16y ago

Nothing stops the middle class from buying gold instead of keeping their money in a cash account. Once you change the system the people will adapt.