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"The whole problem is that inflation is theft" That is like saying that if you run a lemonade stand and someone else opens a lemonade stand next to you, they s
by betterunix 13y ago
"The whole problem is that inflation is theft"
That is like saying that if you run a lemonade stand and someone else opens a lemonade stand next to you, they stole from you. A reduction in the value of what you own is not theft by any stretch of the word.
"It's historically been very popular as a means of taxing the public without them realizing that's what you're doing."
Ah, but inflation is not truly a tax, because it is driven by market forces and not by the law. Actual taxes reduce the rate of inflation by increasing demand for money.
- jswinghammer 13y agoNo but if you reduce the quality of my lemons then yes you did do something akin to theft. That's what inflation does it. It debases the quality of money. Inflation can't continue in a free market forever because eventually a crash occurs because inflation kicks off a boom bust cycle. Taxes have nothing to do with inflation and don't change anything on their own. They may reduce the pool of capital and may force people to the credit markets but we need more information before saying such a connection exists.