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Inflation is the most cruel, invisible tax - cruel, because it is regressive, and so affects the poor much more than the rich. That the government, elected by
by jazzyk 6y ago
Inflation is the most cruel, invisible tax - cruel, because it is regressive, and so affects the poor much more than the rich.
That the government, elected by the people, is actively - and pretty openly- diminishing the purchasing power of working people it was elected by - is just breathtaking.
And yes, the purchasing power will diminish, because price inflation will not be matched by income inflation, due to a lot of slack in the labor market.
- pwinnski 6y agoExcept inflation is by no means guaranteed. We've been fighting deflation for years now. For the decade following 2008, the last time there was a big warning about how stimulus spending would lead to Weimar-style hyper-inflation, our inflation rate has averaged 1.47%. The Fed is trying to raise that to 2%, worried that it's too low!