The classic inflation from the economy working a little too well is not a flat tax, since both wages and prices are growing
Inflation doesn’t cause wages to grow proportionally, despite what some Harvard wankers like to pretend. Theoretical models are interesting in science, but for something like economy, they are completely useless.
Classic inflation erodes the savings of the rich, and erodes the debts of the poor.
Capital ROI is almost always greater than inflation, meaning wealth inequality increases regardless of inflation. This is before taking into account that physical assets (e.g. housing) also increase in value through inflation, meaning the owning class never loses money to inflation.
Again, theory and practice diverge pretty much entirely.
Inflation is a concept created by governments to be able to run on a perpetual deficit (necessary when you privatise everything profitable by selling it to your buddies). Making a tax on the poor is a “nice” benefit, but don’t be mistaken: if the owning class saw it as a threat to their wealth we’d be back to the gold standard already.
Yes. All money is created, otherwise it wouldn’t be money. To be fair that epiphany puts us at a higher understanding than the average modern economist lol
Capital ROI is almost always greater than inflation, meaning wealth inequality increases regardless of inflation.
True, feels irrelevant though?
physical assets (e.g. housing) also increase in value through inflation, meaning the owning class never loses money to inflation.
Good point. Only cash savings, bonds etc lose value.
Inflation is a concept created by governments to be able to run on a perpetual deficit
Monetarism is a neoliberal brainworm. It works nice in neoliberal econ 101 theory but doesn’t hold up in practice. I explained a little more in a response to another comment here.
(necessary when you privatise everything profitable by selling it to your buddies)
Always necessary since money needs to come from somewhere. Money created in business loans result in private debt. Money created by governments results in private savings. Do you want us to have more collective debt or more collective savings? I vote savings
Listen I’m with you on the eat the rich shit but your argument broadly agrees with neoliberal think tanks funded by those very rich people. They love it when we get mad at government deficits or inflation. They want the monetary supply to remain tight, unemployment high, and profits steady and stable.
To be clear inflation from price shocks absolutely does affect the poor disproportionately and we are right to be pissed. A small amount of inflation is acceptable, the problem is that more of this growth needs to be captured by workers rather than capital. Lets get angry at that.
… Also called “printing money”.
Inflation doesn’t cause wages to grow proportionally, despite what some Harvard wankers like to pretend. Theoretical models are interesting in science, but for something like economy, they are completely useless.
Capital ROI is almost always greater than inflation, meaning wealth inequality increases regardless of inflation. This is before taking into account that physical assets (e.g. housing) also increase in value through inflation, meaning the owning class never loses money to inflation.
Again, theory and practice diverge pretty much entirely.
Inflation is a concept created by governments to be able to run on a perpetual deficit (necessary when you privatise everything profitable by selling it to your buddies). Making a tax on the poor is a “nice” benefit, but don’t be mistaken: if the owning class saw it as a threat to their wealth we’d be back to the gold standard already.
Yes. All money is created, otherwise it wouldn’t be money. To be fair that epiphany puts us at a higher understanding than the average modern economist lol
True, feels irrelevant though?
Good point. Only cash savings, bonds etc lose value.
Monetarism is a neoliberal brainworm. It works nice in neoliberal econ 101 theory but doesn’t hold up in practice. I explained a little more in a response to another comment here.
Always necessary since money needs to come from somewhere. Money created in business loans result in private debt. Money created by governments results in private savings. Do you want us to have more collective debt or more collective savings? I vote savings
Listen I’m with you on the eat the rich shit but your argument broadly agrees with neoliberal think tanks funded by those very rich people. They love it when we get mad at government deficits or inflation. They want the monetary supply to remain tight, unemployment high, and profits steady and stable.
To be clear inflation from price shocks absolutely does affect the poor disproportionately and we are right to be pissed. A small amount of inflation is acceptable, the problem is that more of this growth needs to be captured by workers rather than capital. Lets get angry at that.