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Thats because the state basically printed money and handed it out. Ask yourself when you have a normal working class person who roughly breaks even on their in
by samiv 1y ago
Thats because the state basically printed money and handed it out.
Ask yourself when you have a normal working class person who roughly breaks even on their income vs. their spending where does all that money go?
They pay rent. And then what? They pay mortgage, they car insurance, they utilities.
One way or another the money ends up to the top of the pyramid, i.e. the wealthy individuals who own capital assets, properties, businesses etc.
You had high inflation because the government essentially printed money. But what if instead of printing that 1 trillion dollars (or however much it was), the state had actually taxed the that money off of the rich individuals and corporations and then handed that out.
The same money would again flow through the system back to the same rich people where it could be taxed again and handed out and put back into the circulation. This would not cause inflation by itself since the monetary value of the money would not be devalued.
It would require a government that actually gave a damn about its citizens and had balls to tax people and corporations and when the said corporations and individuals run the government its of course not going to happen.