3 ms·

> Growing the economy isn't inflationary. It is if you provide a route to citizenship for ~16M americans, many of which are not making minimum wage. > Rich pe

> Growing the economy isn't inflationary. It is if you provide a route to citizenship for ~16M americans, many of which are not making minimum wage. > Rich people don't contribute to inflation as much because they have lower marginal propensity to consume. You need to combat demand-side inflation by taking money away from everyone else, and supply-side inflation by increasing production. The goal is to use the inflation to drive a reduction in wealth inequality. If the rich person finds it unfair, I'm sure they can find something to mop their tears with.

astrange 3y ago
> It is if you provide a route to citizenship for ~16M americans, many of which are not making minimum wage. Hmmm, I think it more counters a deflationary trend of older local people retiring. It is true that people earning more is likely inflationary (but that's better than all alternatives). > The goal is to use the inflation to drive a reduction in wealth inequality. Causation would go the other way round. Wealth taxes are inflationary, insofar as taxes are paid in USD and so you have to sell your assets to get the USD, causing extra transactions. That's a problem since most other kinds of tax are deflationary.