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If the spending is funded by taxes rather than printing, why would we expect huge inflation to result?
by anonymoushn 13y ago
If the spending is funded by taxes rather than printing, why would we expect huge inflation to result?
- eli_gottlieb 13y agoWell, let's admit it: because under a debt-backed fiat currency, the value of currency is a function of income inequality. To reduce inequality is thus to dilute the currency and create inflation.
- stevesearer 13y agoI would expect price inflation to occur in some areas because people will have more money to spend which will have the effect of less downward pressure on prices. In my life, if I started receiving $1000 extra dollars each month, I imagine I would first go and try to rent a nicer apartment. Unfortunately, I'd expect others to do the same, giving landlords the ability to charge more because there are more dollars chasing the same number of apartments.