Re: Can we subsidize all taxes with inflation? No, why?
- From: "The Trucker" <mikcob@xxxxxxxxxxx>
- Date: Tue, 8 May 2007 09:36:48 -0700
<royls@xxxxxxxxx> wrote in message news:463f29a7.2583391@xxxxxxxxxxxxxxxxx
On 7 May 2007 08:00:59 -0700, palios <q2w3qw15@xxxxxxxxx> wrote:
Let's say we have a completely taxless system. If the goverment wants
any money it simply print 'em, in the expense of all moneyholders of
course.
What would be the main dissadvantages with this?
It undermines the exchange system, reduces price information quality,
and has a number of other bad effects. A small amount of inflation,
in the low single digits, does not appear to have a large negative
impact, and can even stimulate production by giving people an
incentive to consume and invest rather than hoard currency. But
replacing all taxes with inflation would quickly destroy the economy,
as it has numerous times in history.
If we actually look at the current Republican borrow and spend fiscal
system of the USA we can see what actually happens. It is very
important to recognize who gets the money and what they do with
it. In the Republican system the very rich people who are relieved
of a tax burden end up poking the created money in their personal
bank accounts after it wastefully sloshes through the military industrial
complex. While the currency declines in value the rich people
simply collect more and more of the currency; they more or less
stay even on the deal. Only the worker bees who are trying to
save up to buy a home or some such thing are screwed by the
decline in the value of the dollar. Meanwhile, the neoconomists
are in full choir mode singing the praises of the devaluation and
chortling about how this will eventually have a "positive"
effect on the trade imbalance and create lots of jobs in the USA.
Anyone who _WANTS_ to work 2 jobs is a moron. And those
who want to "get ahead" will need to work 3. If that is what
you'd like then just trot right on out and vote for another lying
theiving Republican.
--
"I know no safe depository of the ultimate powers
of society but the people themselves; and
if we think them not enlightened enough to
exercise their control with a wholesome
discretion, the remedy is not to take it from
them, but to inform their discretion by
education." - Thomas Jefferson
http://GreaterVoice.org
.
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