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Money printing is a tax on everyone. More so on the poor, who have fewer assets that inflate along with the money printing.
by throwkeep 5y ago
Money printing is a tax on everyone. More so on the poor, who have fewer assets that inflate along with the money printing.
- dragonwriter 5y ago> Money printing is a tax on everyone. Its a “tax” (a reduction in real value held) on holders of dollar denominated assets, transferring value to holders of dollar-denominated liability. > More so on the poor, who have fewer assets that inflate along with the money printing. The poor tend to have most of their gross assets in tangible non-financial assets (like a car and other durable goods), which do tend to inflate with general inflation (they may depreciate independent of inflation.) In terms of dollar denominated items, the poor tend to be net debtors, and inflation reduces the real value of that debt.
- dllthomas 5y ago> transferring value to holders of dollar-denominated liability. And also, of course, recipients of the new dollars.
- imtringued 5y agoWhen you buy overpriced stocks, where is the money ending up? Is it ending up with the poor, who are selling overpriced stocks?