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Taxes increase inflation. You buy a steak at a restaurant. If they have to pay 50% extra for their employees in tax, and 50% extra for the meat then it will be
by TigerTeamX 3y ago
Taxes increase inflation. You buy a steak at a restaurant. If they have to pay 50% extra for their employees in tax, and 50% extra for the meat then it will be more expensive for them to sell you the steak.
- Matheus28 3y agoModern Monetary Theory disagrees with you. Increasing taxes reduces spending & money supply, thus reducing inflation.
- TigerTeamX 3y agoI don't take MMT serious. It has been wrong about almost everything. The theories are just theories without substance or evidence.
- vkou 3y agoThe detractors of MMT have been wrong far more consistently than it has been.
- deleted 3y ago[deleted]
- rad_gruchalski 3y agoWhich in effect leads to everyone wanting more money. So everything starts costing more. Thus inflation goes up.
- kevviiinn 3y agoTax raises reduce inflation because hoarding money increases inflation. These people don't spend their money, they borrow against their assets. Taxing that hoarded money beings it out of the dragons' dens and back into circulation
- AnIdiotOnTheNet 3y agoSome day people who only ever took econ 101 and decided that they therefore understand completely how a complex set of interrelated systems work will realize that they're suffering from Dunning-Kruger effect, but apparently it won't be today.
- permo-w 3y agoaccusing others of the Dunning-Kruger effect is rarely a sign of a healthy mind
- AnIdiotOnTheNet 3y agoIs accusing others of having mental health problems less so, I wonder?
- permo-w 3y agoI suspect that implying someone is unhealthy is less unhealthy than implying someone is stupid
- TigerTeamX 3y agoCan only agree with you ;)