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> once you give everybody $X,000 dollars per month you'll spur inflation > Meanwhile, that money has to come from somewhere and it will come out in the form of
by brazzy 13y ago
> once you give everybody $X,000 dollars per month you'll spur inflation
> Meanwhile, that money has to come from somewhere and it will come out in the form of taxes.
These two statements are contradictory. If it comes from taxes, it's not "printed" money and thus does not directly lead to inflation - unless it's through increased spending, in which case it means increased consumption and thus a growing economy.
- maxk42 13y agoThey're not contradictory: Prices for basic necessities such as food and housing would rise, causing an increase in inflation. Meanwhile, spending for luxuries would see a contraction as additional tax burdens shrink discretionary spending. The net effect is to shrink the middle class, as I explained.
- brazzy 13y ago> Prices for basic necessities such as food and housing would rise, causing an increase in inflation. Only if previously a significant portion of people could not afford basic necessities at all and/or it's impossible to produce more of those basic necessities. Both of these seem rather dubious. > The net effect is to shrink the middle class, as I explained. You didn't explain anything, you made a bunch of predictions.