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I 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
by voxic11 4y ago
I 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