Slade3200
Diamond Member
- Jan 13, 2016
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Correct, taxation burns money out of the economy to control inflation and it recirulates money to protect against the top earners accumulating all the wealth. The system hasn't been managed very well over the past few decades. You didn't answer my question though. We are talking about debt and spending and tax cuts, a large portion of this thread was focused exactly on Welfare spending so I don't know why you are saying we weren't talking about that.We're discussing the $27T of US Debt being held by the Fed, pensions, and foreign governments, not welfare recipients.
The return on US Debt is about 1.5%
Inflation is 2% and headed upward.
When the Fed prints money how does that affect everyone's buying power?
When the government raises taxes to pay the interest or principle on the Debt, that takes money out of the economy. Because that "investment" lost value due to inflation.