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Upfront? We've had inflation for the last 100 years, almost everyone knows what inflation is. And even if they don't know the term they are probably familiar
by JamesBarney 6y ago
Upfront? We've had inflation for the last 100 years, almost everyone knows what inflation is. And even if they don't know the term they are probably familiar with the concept that their grandfather could buy more with a nickel than you could today.
I really can't see how inflation is in any way dishonest. Not to mention the amount of money maid via taxes(1.5 trillion) absolutes dwarfs any revenue from seigniorage(65 billion).
https://economics.stackexchange.com/questions/16075/usa-seigniorage-revenue#:~:text=At%20an%20average%20inflation%20rate,of%20seignorage%20revenue%20per%20year https://economics.stackexchange.com/questions/16075/usa-seig....
- BobbyJo 6y agoInflation is highly variable, and the body that can turn the most knobs (the Fed) doesn't have a good track record of predicting what the effect of that knob turning will do lately. Also, when the government borrows money and the fed buys notes to keep borrowing rates low, that still produces inflation. The fed is sitting on about 4T$ in bonds as of now.
- JamesBarney 6y ago> Also, when the government borrows money and the fed buys notes to keep borrowing rates low, that still produces inflation. Assuming interest rates aren't 0 or near 0 that's true. But recently inflation has been consistently lower than historical norms.
- BobbyJo 6y agoWhich the fed itself has attributed to fluke changes in the market they couldn't foresee.