Since inflation is a tax caused by excessive government spending, tabulate CPIs since 1958 and add that to determine rate.
1. It's not caused by excessive government spending. There is no correlatio between inflation and spending.
There is a direct corollary between inflation and spending. The more that is spent that isn't taxed is converted into treasury bills, and sold to whoever's foolish enough to buy them, normally the Chinese and Saudis. Whenever these treasury bills don't sell, the Federal Reserve buys them. Since the Federal Reserve has no money or resources of its own, it generates the money to buy those t-bills artificially, thus an increase in the money supply, which by definition is inflation. The Fed just monetized $1.2T of debt and t-bills just the other week when the fiasco about AIG bonuses was made. The consequence of inflation is seen through higher prices, and asset bubbles, should inflation be severe. So, yes, spending yields inflation.
There's no corollary between inflation and spending. Neither of the two big spenders of recent times, Reagan and Bush were characterized by inflation rising along with greater spending. In fact despite Reagan's big spending increases, inflation went down.
The Fed doesn't buy Treasuries when they don't sell. It buys them when it wasnt to increase the money supply.
And what consequence of inflation? There's been no problem with inflation since Carter appointed Volcker in 1979 and he cracked down on the money supply, beating down inflation in the early 80s. The inflation rates of 2% have been intentional.
Any proof of your claims other than you own say-so?
2. Inflation is not a tax. It doesn't go to the government and you don't pay it.
It is a tax. The government directly controls the rate of inflation through the rate they increase the money supply. This is used to finance spending. It is very much a tax, and a very regressive one at that. The tea party protests were largely against the inflation tax that was coming because of all these deficits, as well as more direct taxes.
I don't pay it. The govt doesn't get it. It is only affects those with fixed incomes, like those on minimum wage, one of the few things not indexed, for some strange reason.
The tea parties were about inflation? Is that what the Boston colonists were upset about, inflation?
And the modern tea parties are all upset about inflation that is running, what, about 1% annually now? I missed the "Whip inflation now" signs in the photos.
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