29 ms·
Not really. My intuition would be less tax just means different kinds of things purchased, not really a change in the total amount available in the pool... I'm
by janee 4y ago
Not really. My intuition would be less tax just means different kinds of things purchased, not really a change in the total amount available in the pool... I'm not well learned about this stuff, but I don't see it being intuitive at all
I.e. tax money I would think eventually circulates back into the same pool, same pool non-gov entities trade in.
My intuition tells me the total pool size available at any given moment shouldn't be drastically different and wouldn't be correlated to tax amounts in an obvious way.
- voxic11 4y agoI guess another way of thinking about it is that cutting taxes (in theory) leads to increased consumer spending which equates to a increase in demand. In supply constrained environments like what we see today increases in demand will result in increases in price. Widespread increases in price is inflation. Idk it seems pretty intuitive to me and is a pretty common theory, for instance its mentioned here https://www.forbes.com/sites/howardgleckman/2022/06/02/should-congress-raise-taxes-to-fight-inflation/?sh=35a91cf4424b https://www.forbes.com/sites/howardgleckman/2022/06/02/shoul...
- janee 4y agoI suppose where my assumption could be wrong is that consumer vs gov spending sort of cancel each other out, i.e. fluxuations in the two are quickly negated because they take place in the same overall "market" and eventually anyway end ups in non-gov hands because there's a lot more of us in the market Not sure if I'm explaining myself well