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There are two ways government influences the economy: monetary inflation and taxation. Whether prices get higher (government bidding up prices following moneta
by danuker 4y ago
There are two ways government influences the economy: monetary inflation and taxation.
Whether prices get higher (government bidding up prices following monetary inflation) or taxes increase, the effect is the same: the good/service production in question will get modified relative to other parts of the economy.
Inflation is just a tax increase on "everything but" what the government is buying.
- spywaregorilla 4y ago> There are two ways government influences the economy: monetary inflation and taxation. Is this some sort of hot take where you try to classify government spending as monetary inflation? I don't know what the point of this reply was otherwise. It's still very misleading to imply some money printing has the same scale of ramifications as a default.