4 ms·
This is gaslighting -- increased taxes without increasing spending might reduce inflation. But the IRA massively increased government spending, and government
by miley_cyrus 4y ago
This is gaslighting -- increased taxes without increasing spending might reduce inflation. But the IRA massively increased government spending, and government spending is a primary driver of inflation. [1]
1: https://www.federalreserve.gov/econres/notes/feds-notes/fiscal-policy-and-excess-inflation-during-covid-19-a-cross-country-view-20220715.html https://www.federalreserve.gov/econres/notes/feds-notes/fisc...
- bryanlarsen 4y agoThe IRA increased taxes by 740B and increased spending by 440B. That's a net reduction.
- aidenn0 4y agoIf you transfer wealth from the rich (who mostly use money to invest in assets) and transfer it to the poor (who mostly use money to buy consumer goods), wouldn't that naturally reduce asset values while increasing prices of consumer goods?
- bryanlarsen 4y agoPerhaps, but the IRA doesn't do that, unless the poor are suddenly buying electric cars and wind turbines. Also remember the time impact. Taxes went up immediately, whereas the bulk of the IRA rebates will happen in a few years.