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There is definitely inflation due to the upper class having more money, they are just using it to buy assets instead of goods. Cheap money caused consolidation
by arrosenberg 4y ago
There is definitely inflation due to the upper class having more money, they are just using it to buy assets instead of goods. Cheap money caused consolidation and asset price increases - you can slow it down with QT, but I don’t think you can re-rationalize the economy without involving the FTC and Congress to unwind the effects. The asset consolidation is one of the major factors driving the inflation on goods.
- adam_arthur 4y agoAsset price inflation is separate from goods inflation and is primarily driven by low interest rates. You can blame the Fed on that one
- arrosenberg 4y agoI do blame the Fed on that one, but that doesn’t mean they have the right tools to fix it. I think its kind if naive to believe that asset inflation has nothing to do with goods inflation. PE and megacorps have been buying up everything in sight and you want me to believe its a coincidence that prices are suddenly skyrocketing and the market is responding sluggishly? Because that’s exactly what you would expect if a bunch of parasites were suddenly running most of the economy. You have to clean up the market of consolidation and tax the money away from the wealthy, who got 85% of the stimulus and used it to buy up the economy.
- adam_arthur 4y agoPersonally I think capital gains tax should be removed above a $1m income threshold and instead it falls under income tax rules. Seems pretty fair and obvious to me. Imagine any of the senate leadership actually proposing that though, lol