4 ms·
Inflation takes years to fully emerge. And income taxes absolutely will have to go up to pay for it. It is not possible to print prosperity the same as it is
by tastyfreeze 5y ago
Inflation takes years to fully emerge. And income taxes absolutely will have to go up to pay for it. It is not possible to print prosperity the same as it is not possible to tax our way to prosperity.
Interestingly, printing money exacerbates wealth inequality. The people closest to the printer get to enjoy the fresh money before inflation hits the broader economy.
- ajmadesc 5y ago>Inflation takes years to fully emerge Evidence? >printing money exacerbates wealth inequality No, the method of distribution exacerbates inequality Important distinction.
- tastyfreeze 5y agoIt is called response lag and is a well studied phenomenon. https://www.lancaster.ac.uk/staff/ecajt/inflation%20lags%20money%20supply.pdf https://www.lancaster.ac.uk/staff/ecajt/inflation%20lags%20m... Yes, distribution matters. Us common folk got a taste, with stimulus checks, of what has been happening for nearly a century at the top.
- ajmadesc 5y agoThanks, I learned something today. Wouldn't introducing automatic stabilizers, like stimulus checks cut recognition and decision lag.
- deleted 5y ago[deleted]