4 ms·
Thing is inflation isn't 'natural' economic condition, it is mostly a product of economic policy according to a very respected school of thought (monetarism). I
by ak_111 4y ago
Thing is inflation isn't 'natural' economic condition, it is mostly a product of economic policy according to a very respected school of thought (monetarism). In other words it is as natural as slapping a wealth tax of 80% on the super wealthy, which is definitely not beneficial for the rich.
- astrange 4y agoWealth taxes, unlike most taxes, would be inflationary because they force selling assets and therefore increase monetary velocity.
- munk-a 4y agoBoth income and point of sale taxes definitely feed into inflation so I'm not certain why you're trying to draw a distinction between those taxes on productive money and taxes on accumulated wealth (generally unproductive money).
- astrange 4y agoThose are deflationary. They reduce transactions (because you want to spend less) and they reduce the money supply. Wealth taxes reduce the money supply as well, but they increase transactions because you have to buy the currency to pay them in by selling your assets. That's because you still have to pay wealth taxes in currency, not just by giving up your "wealth". You can't pay taxes in 1/4 of a house or painting. Although I'm pretty sure an 80% wealth tax would just collapse the economy because people wouldn't own their homes or businesses anymore. Maybe you could take 80% of their debt too?