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They're not contradictory: Prices for basic necessities such as food and housing would rise, causing an increase in inflation. Meanwhile, spending for luxurie
by maxk42 13y ago
They'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.