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Stating that tax cuts are inflationary assumes that the government is able to put the money to better use than individuals. Have in mind that when the governmen
by danielrpa 4y ago
Stating that tax cuts are inflationary assumes that the government is able to put the money to better use than individuals. Have in mind that when the government taxes your money, it also spends it - but instead of spending in productive pursuits, it often spends it in a way that doesn't lead to increase production and, thus, inflation.
- scottLobster 4y agoNo, it's assuming whatever the government does with it won't cause a generalized inflation spike. Let's say the government wastes all the tax revenue building a next-generation aircraft carrier that's so incompetently constructed it collapses in drydock before it can ever set sail. That won't cause the price of everything to go through the roof, except perhaps locally where the money is spent. And actually, the government can often put the money to better use than individuals. Is there incompetence, corruption, and wasteful government spending? Of course. But two things can be true at the same time. I'd like to see an individual try to build a bridge, repair a road, or open a public school off of their tax savings.