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More interestingly, deflation is an ultimate rich tax. If someone makes money in the economy he automatically shares it with everyone else, even with the poores
by snitko 13y ago
More interestingly, deflation is an ultimate rich tax. If someone makes money in the economy he automatically shares it with everyone else, even with the poorest guy who only has 1btc on his wallet. You don't need IRS or any other agency to come and collect it. It just happens naturally.
- XorNot 13y agoNo it's the exact opposite. It's a poor tax. Deflation means no new money that doesn't come from someone else's stash. Which means the money can only come from the rich. Except, the rich's money is increasing in value. So they spend proportionally less and less of their true wealth, while creating no value, to buy the necessities of life from the poor. And the poor, despite producing real value (food, cars, yachts, factories), no matter how hard they work, can never be wealthier then the established rich. It's social stratification by absolutes, fortunately it usually doesn't last since the disenfranchised 99% by definition outnumber the 1%.