The Inflation Tax

[Kevin_Kennedy]

All government spending represents a tax. The inflation tax, while largely ignored, hurts middle-class and low-income Americans the most. Simply put, printing money to pay for federal spending dilutes the value of the dollar, which causes higher prices for goods and services. Inflation may be an indirect tax, but it is very real – the individuals who suffer most from cost of living increases certainly pay a “tax.”

Unfortunately no one in Washington, especially those who defend the poor and the middle class, cares about this subject. Instead, all we hear is that tax cuts for the rich are the source of every economic ill in the country. Anyone truly concerned about the middle class suffering from falling real wages, under-employment, a rising cost of living, and a decreasing standard of living should pay a lot more attention to monetary policy. Federal spending, deficits, and Federal Reserve mischief hurt the poor while transferring wealth to the already rich. This is the real problem, and raising taxes on those who produce wealth will only make conditions worse.

The Inflation Tax by Ron Paul

 

[Paulie]

The liberals will be along shortly to explain why inflation is somehow a good thing.

Sure, it is, if you're a moron and buried in debt. When most of your expenditures are debt repayment, who CARES what the dollar is worth.

 

[Kevin_Kennedy]

The liberals will be along shortly to explain why inflation is somehow a good thing.

Sure, it is, if you're a moron and buried in debt. When most of your expenditures are debt repayment, who CARES what the dollar is worth.

Let's be fair, conservatives like inflation as well.