4 ms·

Inflation is a tax. It’s just regressive (the poorest are paying the most). income tax and ideally a wealth tax get the richest to pay the most. Obviously the

• Spivak 4y ago
  > It’s just regressive (the poorest are paying the most). What? If I have $1,000,000, inflation is 10%, and prices readjust I just lost $100k in purchasing power but if I have $1000 I lost $100 in purchasing power. Proportional taxes aren't regressive. Inflation hits wage earners hardest because it lags behind prices but that's not the same thing.
  • lp0_on_fire 4y ago
    In a pure economic sense someone who lost 10% of their $1000 in savings is doing far worse than someone who lost 10% of $1,000,000 in savings. To the first person that 10% could be the difference between whether or not they have enough to pay rent that month. To the second it's the difference between whether or not they put a down payment on their second home.
    • Spivak 4y ago
      No disagreement, but that fact doesn't make a proportional tax regressive.
      • naveen99 4y ago
        In a binary world, there is regressive and progressive only. Regressive = not progressive (enough). For people that can do math, just follow market response.
  • yazaddaruvala 4y ago
    Any entity with $1,000,000 in cash is making a calculated risk play. They could easily put that cash into gold, bonds, stocks, etc. They are betting on cash inspire of the inflation. Any person with $1,000 is living paycheck to paycheck and has no choice but to keep it in cash (if they can keep it at all). So really you have to compare $1,000,000 in bonds/averaged stock performance to $1,000 of income per month. The latter is far more impacted as the cost of gas and food increases 10%.