2 ms·

I'm not sure the distinction you are making here. A flat tax is called that because it is flat in percentage not in nominal value. Yes, debtors will benefit mo

by slg 5y ago

I'm not sure the distinction you are making here. A flat tax is called that because it is flat in percentage not in nominal value. Yes, debtors will benefit more than creditors, but that doesn't mean it isn't a flat tax. Also it doesn't just impact cash which should be obvious from the last sentence. If inflation decreases the real amount owed by debtors, it also decreases the real amount that is owed to creditors, and therefore decreases the value of their investments.

iso1631 5y ago
> If inflation decreases the real amount owed by debtors, it also decreases the real amount that is owed to creditors, and therefore decreases the value of their investments. I'm sure that's upsetting for wealthy people with investments For the mom working 3 jobs at Macdonalds, as long as Macdonalds continues to pay an inflation linked salary, her debts being whittled away, that's great news. Now if Macdonalds can cut salaries relative to inflation, that's a whole other problem.
- slg 5y ago
  I think you are projecting a moral or political argument into my comments. That wasn't my intention. My point is that there are more powerful levers in the government than the inflation rate. Sure, having your debt reduced by 6% or whatever is good, but the government could also easily forgive all federally owned college debt and 100% reduction is certainly better than 6%. Increasing the minimum wage is another example. That would more directly benefit that mom with 3 jobs more than inflation. Whatever your political goals are, there is likely a much more powerful tool to accomplish them than nudging the inflation rate up or down a few percentage points.
- zionic 5y ago
  > For the mom working 3 jobs at Macdonalds, as long as Macdonalds continues to pay an inflation linked salary Huge assumption. Wages have not kept up with inflation since the 1970’s. Know what has? Asset prices. Guess who owns stocks/gold/real estate?

by slg 5y ago

iso1631 5y ago

> If inflation decreases the real amount owed by debtors, it also decreases the real amount that is owed to creditors, and therefore decreases the value of their investments. I'm sure that's upsetting for wealthy people with investments For the mom working 3 jobs at Macdonalds, as long as Macdonalds continues to pay an inflation linked salary, her debts being whittled away, that's great news. Now if Macdonalds can cut salaries relative to inflation, that's a whole other problem.

slg 5y ago
I think you are projecting a moral or political argument into my comments. That wasn't my intention. My point is that there are more powerful levers in the government than the inflation rate. Sure, having your debt reduced by 6% or whatever is good, but the government could also easily forgive all federally owned college debt and 100% reduction is certainly better than 6%. Increasing the minimum wage is another example. That would more directly benefit that mom with 3 jobs more than inflation. Whatever your political goals are, there is likely a much more powerful tool to accomplish them than nudging the inflation rate up or down a few percentage points.
zionic 5y ago
> For the mom working 3 jobs at Macdonalds, as long as Macdonalds continues to pay an inflation linked salary Huge assumption. Wages have not kept up with inflation since the 1970’s. Know what has? Asset prices. Guess who owns stocks/gold/real estate?