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It is basically an inflation brake, it allows the government to spend and equalize the money supply against a specifically targeted class rather than dumping it
by fgonzag 11mo ago
It is basically an inflation brake, it allows the government to spend and equalize the money supply against a specifically targeted class rather than dumping it wholesale on the economy as inflation (there's a lot more to inflation than direct government spending but it is a cause).
Whether you agree with it or not will vary greatly depending on the effectiveness of your country's government, the wealth gap, your country's currency purchasing power, your general political alignment, and a whole slew of other factors.
- roenxi 11mo ago> ...against a specifically targeted class rather than dumping it wholesale on the economy as inflation... I doubt it. Taxing high asset people: - Doesn't create more stuff. - Doesn't cause them to consume less stuff. With that in mind, in terms of inflation it's just going to express itself as less investment leading eventually to higher prices. If the government is dumping money into the system it isn't causing the ultra-wealthy to be less competitive using it to buy consumer goods. There'll maybe be an early bump as the seeds of future prosperity get consumed instead of planted but the net long term effect is not going to be wealthy people eating any of the costs of inflation.
- jakupovic 11mo agoOr simply rich get richer as you put no brake on the wealth.