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Inflation is theft, and should (in a managed way) be punished as such. Change my mind. Edit: Imagine if the tax rate every year was the rate minus CPI since th
by gjsman-1000 4y ago
Inflation is theft, and should (in a managed way) be punished as such. Change my mind.
Edit: Imagine if the tax rate every year was the rate minus CPI since the tax rate was created. (I.e. A 30% tax rate, with 2% CPI increase every year, would be only 20% by 2010.) That would get the politicians to kill inflation right quick… or set the tax rate to hilariously unpalatable levels constantly.
- deleted 4y ago[deleted]
- socialismisok 4y agoSome folks benefit from moderate inflation. My house, for instance, is worth more but my mortgage is relatively less.
- starkd 4y agoBut isn't that more of an illusion of greater wealth? I mean, if you don't stay in your current house, you will just swap it for another one. The price level doesn't really matter, just as long as you can still get something of equal value.
- margalabargala 4y agoIt does matter, because the loan is easier to pay off. You're right about house value increases being a wash, but inflation helps people with large loans.
- nemo44x 4y agoIf you borrowed money to pay it off and you're still relatively early in your loan then it's great. You just got a massively discounted house. Anyone who bought a house just before the pandemic and locked in an ultra low interest rate to boot is going to make an absolute fortune on their home in 10 or 15 years time. They probably have already with prices up so much. Interest rates will cool it down but cost of living adjustments will counter that.
- Auracle 4y agoAnd anyone on a fixed income gets absolutely demolished by it.
- taylodl 4y agoHow do you think government debt is going to fix inflation? Your "proposal" would actually make inflation worse.
- francisofascii 4y agoI don't think inflation can be solely blamed on politicians or policy makers. A sudden shock to supply, like Covid, or a bad drought, hording, a war, etc. all drive up inflation. I agree inflation should be "fought" with whatever policy tools are available.
- colinmhayes 4y agoInflation is one of the largest reasons for the century of economic success the world has seen. It incentivizes investment and stops liquidity crises in the money market. Non fiat currency would mean mass unemployment every time the economy enters the downturn of the business cycle.