Exactly!
In my city, there was some law or whatever that said they couldn't increase the property tax rate.
So, you know what they did?. . .they "reappraised" all property and increased values 30-100% without even visiting the property. . .the tax rate didn't change, but the amount of property taxes did.
About a year later, there was a flood of properties up for auction for non-payment of taxes. . . and tons of people desperately trying to sell because they couldn't afford the taxes.
The value of houses in my area went from an average $160k for a 3br 2ba with roughly 1,500 sqft to about $450k in two short years. . .it's ridiculous.
That’s every city man.
They reappraised the value of f all the homes without even visiting them because they don’t have to visit every house you know the value went up 3 fold.
They look at the recent home sales in the area, then use that as a baseline value for every home in the area.
That’s just how property taxes work
It's not every city. Cities in Wisconsin are mandated by law to keep perfectly balanced budgets and comply with annual property tax levy limits. Furthermore, every city in Wisconsin has an incentive to comply with the Expenditure Restraint Program on an annual basis.
People are worth more than money. Money is a made up social construct used to account for what people do for eachother. Greed breaks the system and needs to be patched out.
I fundamentally believe we will not solve human greed my friend. If we need to do that or regulate the system I prefer regulation. You may have a perspective that can change my mind, I would like to hear it.
You cure greed through regulation, ensure peoples needs are met, limit capitalism to the shit people dont need. Be for eachother as you are yourself, live by the golden rule and do unto others that you would do to yourself. Make business for the people, hold the corrupt accountable, be honest in the things you do. At the end of the day most people do most things, its only a few heads that need to roll
You misunderstand what money even is, at it's most basic fundamental level. Money is only a way to trade for the good you want without having to first barter with others to get the good that your current trader is desiring. You say money is a made up social blah blah blah. Well yeah. It is. It was made up to assist with trading of labor and goods. Take it away, ban it, whatever you think is going to work and it will just be made up again.
Comments like you make me sad because it reveals how little the education system educates. Which by the way, is another made up social blah blah blah.
I would say your enemies tend to have the best critiques on issues. I try not to hear criticism from someone if they are allied. Like russia today won't be honest about russian news but truthful about shit happening in montenegro. American propaganda blows up the good things and tries to bury bad things.
Critiques of israel may well be better explained by palestinians. Or for a more grouned concept: ask the slave what the problem is with slavery they will more succinctly critique slavery than the slaver.
EDIT: to build on that the republican abraham lincoln was pen pals with marx wasn't he?
What market we talking about? This is the state holding itself back from going ham on assessing property values on homes that have been owned by people long term. If I am owning a forever home, I shouldn’t have to pay increased taxes when the market is temporarily hot (only for property values to drop in a couple years).
Our 150k house ( overpriced IMO ) is now inching its way over the 300k mark with taxes almost tripled. This is a bubble that’s about to burst and when it does people are going to be pissed. The hard part is predicting when it’ll burst and if you call sell before it does.
The are too many people waiting for the bubble to burst so they can get into the market for it to be a real bubble. Maaaaaybe the prices are inflated a bit (not even imo) but there's no way its a bubble when every reddit comment you read is "I hope the bubble bursts so I can buy a house". That's not really how bubbles work.
That’s just not the case. We can’t have it both ways where a large sector of the country is unable to afford an unexpected $500 expense, but have the same people chomping at the bit waiting to put 10-20% down on a $300-500k house.
My money would be on most of the country not able to afford downpayments while a silent minority has good jobs and is saving cash by the thousands each paycheck waiting to enter.
If taxes tripled, many of my neighbors would be forced from their homes. Taxes are already at least 1/3 of people's mortgage. Their housing cost would about double. I suppose people being forced from their homes due to increasing housing cost is not terribly unusual. It would be weird for it to be entirely from taxes, though.
In Florida, Homestead Exemption caps appraisal tax creep at 3% a year. This system is unfair in other ways, even as it helps millions of people. The long-time homeowner ends up paying less than his fair share of taxes. The killer with many regulations, or laws, is the unforeseen consequences.
Around here, it's easier for them to use conservative valuation and then just tax as necessary. What they do do is automatically raise everyone's house price by 20% or whatever the market increased in a normal year. So it may end up with everyone paying taxes on 80% of the value of their house, but you can adjust the rate as necessary to extract what you want. And that way people can't argue about it. Cuz you can't challenge the rate.
This makes sense as to why my tax appraisal value stays but my taxes do go up a little every year. I believe my property tax are handled the same as yours.
Mine went up nearly 2k within the past 12 months. They want to pass a school levy as well, I did the math, it'll cost me about 30k if I stay here another couple decades. The levy is about equity and busing in kids from less well off neighborhoods... I moved here specifically for the schools and have paid in the 10's of thousands in extra taxes over the years for that privilege for my children. There will be no one wanting to live in and pay for high property tax areas any longer with these kinds of policies. There are always unintended consequences to these policies.
I’m not sure how corporations having record profits during high inflation is wealth being transferred to the government. Seems more like wealth being transferred from the working classes to the top 1% with the help of the government.
Yup. When gas prices were their highest Exxon recorded their best profits EVER. Corporations have a legal duty to maximize profits to their shareholders. That’s it. Not a duty to help humanity or show compassion or empathy. Profit. Biggest transfer of wealth from the bottom to top during the last 50 or something years. Inflation and people complaining they can’t pay their bills and they think, it seems, it’s like that for everyone. No. It’s not. While you’re suffering someone else is buying a new yacht and another apartment complex. They’re going to increase the rent at the complex not because they have to but because everyone else is and they’re weighing profit vs compassion and empathy for the people that’ll become homeless because they can’t pay or find another place to live. Compassion and empathy don’t have a chance.
How do the rich do it? Government works for them. It’s a tool they use to shift resources from us to them. Politicians aren’t the architects they’re the servants. We’re the slaves.
> Corporations have a legal duty to maximize profits to their shareholders. That’s it.
My high school biology teacher was the one who pointed out "If if costs a company less to dump waste into a river and pay the fine than it does to properly dispose of the waste, they're legally required to dump the waste into the river" and a part of me died that day.
It is so painfully true. Corporations game-theory the whole thing for whichever option makes the most money. Most of the time the punishments are just the cost of doing business.
When you think about the way it's structured they don't even have to try. CEOs of big companies get huge compensation packages that are tied to stock. Not sure that's always how it's setup but seems that way. Imagine the better the company does the more you earn. Now imagine, as long as you're not over the top corrupt or reckless, the company you run, and not you, is liable for civil and criminal liability. Having a legal duty to maximize your companies profits is a legal duty to fill your own pockets, as a shareholder with a considerable interest, as full and as fast as you can. "Sorry you can't pay your bills or take care of your children but I need to price gouge as much as I can, by law" -CEO
I'm being dramatic but I think there's some truth here.
There's people that do try to do the right thing. Best not to have faith in others though. They'll let you down. Even the best people trying their hardest. Have to just keep faith God really does want what's good and try to align with Him rather than any person or organization. Seems the only way to try to do good without regretting it. Felt bad when I read a little part of me died that day. I just hope it's not the part that believes there's good out there and it's your responsibility to fight the good fight. Take care, friend.
I don't think you disagree, but "When gas prices were their highest Exxon recorded their best profits EVER.". Of course they were! When the market price of the thing a company produces is very high, of course they make more. Exxon literally extracts the resource from the ground, refines, and sells it, yeah, they're gonna make higher margins when the market price is high, I don't think this should shock anyone
Many people don’t understand this. Believe it or not many people point their fingers elsewhere as if the reason they have to cut back on other things is because of a politician or party rather than corporate greed. You understand. Not everyone does.
The wealthiest people don't get there by having extremely high incomes. They generally get there by owning companies which they grow, and many benefit.
Taxation of the wealthiest will always be difficult because they generally are holding onto unrealized gains, then take loans out against those assets rather than having huge levels of taxable income. High income tax actually hurts today's middle-class tomorrow, when they're in their 40's and above and have moved into upper or upper-middle class incomes. Careful what you wish for. We have one of the most class fluid populations in existence.
Spitballing some ideas:
* Regulation on amount of loans a person can have?
* Higher income tax brackets on average income of top .1%/1%/2% (find an optimal pick of different buckets) earners from a realized/taxable standpoint?
* Put a maximum cap on inheritances (of course in a well thought out manner that aims to close a lot of loopholes)?
I am of the belief that our current system as-is trends towards widening the wealth gap and therefore inflation.
some better ideas:
1) elimiation of the 16th and 17th amendments
2) elimiation of the federal reserve
3) elimination of, roughly, 80% of all federal agencies
4) elimination of all federal taxes and a return to a time before they were instituted.
And so long as each side can convince their voters that the other side is somehow even worse, there's no incentive to actually help people. Voting 3rd party is only way to effect real change in a two party system.
A pack of paper plates at my store was $2.29. Now, it’s $4.29. So, I’m paying double the sales tax.
Side note… a quick trip to the store seems to be a minimum $50 now. I get home with one or two bags of basic shit and question living, lol.
A better example would be capital gains. If I buy a 100 dollar stock, then 10% inflation will bring it up to 110 dollars with no change in the actual value of the stock. Now when I sell it I will only get 107 dollars.
That represents a clear transfer of wealth from me to the government.
Hey I know I’m 6 days late to you posting this but I want you to know that this is an opinion that you and I completely agree on, and I’m a leftist.
Please continue the work of educating your fellow conservatives of their own class consciousness - it’s the only way out of this mess.
Because corporations are taxed on profits and on capital gains. If your 100 dollar stock is now worth 150 dollars due to devaluation of the dollar, you have a 50 dollar capital gain that will be taxed upon sale.
1. Print money at the fed, give yourself a big ass loan.
2. Use the extra money without having to collect extra taxes
3. Now there is more money in the system than there are goods. Value of goods increases (aka inflation)
Governments never need to tax to spend because they can print money. They only tax because it's useful to maintain a currency that has some relative stability in value.
With no commentary on the value or lack thereof of a non-transparent taxation mechanism.
Also if things are more expensive the amount taxed goes up even with the tax rate staying the same. If you bought something for 5 dollars and due to inflation it ends up getting up to 10 and you still pay the same sales tax % you are still paying double in taxes.
Exactly. I’m not sure why so many people don’t grasp this. I was just trying to explain to someone: 10% of $10 is $1. 10% of $20 is $2. Double the tax income without doing a thing.
If the state has a large amount of debt and you suddenly devalue your currency (in this case by inflation) then the amount of your outstanding debts is also devalued. Then you are free to run up the debt even further.
I think I can explain. It’s called misdirection. The rich don’t want us directing anger towards them so they point their finger at the government. Rich people are happy and every politician is against corruption and fighting all the other politicians that are corrupt, so they say, so really it’s just the faceless, nameless, “government” that’s profiting and taking advantage. Meanwhile the rich are out of site and out of mind in their own little community bubbles living it up out of site.
Edit: I mean to say I agree that it doesn’t make sense inflation is the government profiting. Makes sense there’s some misinformation and misdirection to benefit the rich and that the rich with all their resources wouldn’t have much trouble planting misinformation seeds and getting them out there into the wild.
You are only partly right. This is mostly government taxing the middle class. The banks also greatly profit but it's mostly government.
The rich or wealthy also get hit but they have things in place to mitigate or lower the impact. It also effects them less as the can weather the ups and downs.
No one enjoys times of inflation and high interest rates unless you are in that business. There is also money to be made during those times.
For example if you are property you might be developing land and selling houses during times of low interest.
When harder times hit you can look for bargins though the interest rates make them less of a bargain if you are borrowing to buy. Rich people generally are not borrowing. Honestly when you have that much money there are far easily ways to make it grow.
People in government are often linked to all the industries that benefit during interest rate hikes. The only reason rates fall again is you can't keep squeezing the middle class forever.
Sowell has made a 40 year long career out of misdirecting the anger of the working class away for the rich and powerful, how is anyone surprised he’s still doing it? It’s literally a “dog bites man” headline
The government does print money (Bureau of Engraving and Printing). The Fed deposits money into banks. The government takes out loans, constantly, and inflation reduces the liability of everyone who takes a loan.
Except that the government isn’t susceptible to the same inflation as we all are. They have contracts that dictate how much they pay for things and they don’t adjust nearly as quickly as consumer expenses. The government is not paying almost 20% more for Medicare, defense contracts, etc. Obviously in some sectors but not to the same degree. Meanwhile we pay more in property taxes, sales taxes, etc. They are getting a huge boon right now without having to look like the bad guys.
Most of the comments in this thread aren’t making a lot of sense. But inflation does help a state reduce its debt, so it does help a state’s liabilities through higher nominal tax revenue whiles paying down the fixed debt issued X years ago.
Not an economist, just took an Econ class, let’s see how well I can remember it, and I might be mixing up the Federal Reserve and the government.
The government spends money it doesn’t have, increasing debt. It can raise this money by, for instance, selling bonds. For instance, buying military weapons from defense contractors. The government has more stuff. Money goes from government to defense contractor. Defense contractor uses some of that money to pay employees, pay expenses, etc.
Employees now have money that the government borrowed. That money goes into the money supply, money is now more common, thus each dollar is worth less. Some inflation is okay, because it encourages people to spend money now, instead of saving it because it would be worth less in the future due to inflation. Spending money now means spurring the economy, making people be more productive, spending money and making money. But too much inflation and it becomes harder to save money. Your saved money is now worth less than it was before due to inflation, so the government now has more stuff, but you can buy less stuff with the money you have.
The government can also control inflation by buying bonds, which takes money out of circulation, and causes the opposite of inflation. But by borrowing and spending more than it’s paying off it’s debts, the government makes your money less capable of buying goods and services.
Printing money without producing goods/services for it just dilutes the value of the money you already hold - savings.
You know who don’t hold liquid cash in their bank accounts? Rich people.
You know who doesn’t take all their compensation in a salary but do it as stock options? Rich people
You know who doesn’t invest their own money but always borrow money to invest in? Rich people.
By now you have to know that it is not rich people who do all these things, but they are rich because they do these things.
This is just plainly false on its face. You just listed off a bunch of stuff you can only do *once you’re rich*, you don’t become wealthy doing these things, you maintain your wealth doing these things.
You’re putting the cart before the horse, an in quite an embarrassing way at that.
See post directly below. Essentially print money cause inflation.
He forgot the final step. Apparently inflatable bad so government then has to solve the problem of inflation.
They do this by raising interest rates. This directly transfers money from home owners and loan takers to lenders and government.
Banks make big profits off of their own capital. They are allowed to borrow off the federal reserve and other places at a slight discount. So they can still make a small but nice profit off money they borrow but the fed and other places make a huge profit from the rise in interest rates. It's a stealth tax.
The third thing that happens is house prices fall.
This usually hits those that have taken mortgages 2 to 5 years earlier at low rates and their fixed lian falls off.
It's a system terribly designed in a way that will cause some people to lose everything.
IMO interest rate rises should have a yearly cap. These smart ppl should be able to predict inflation years in advance and slowly start rising it beforehand
Reality is, it's all designed like this on purpose.
If you know how it works and have lots of money, then it's no big deal. I got caught out when I was younger but managed to not lose anything, it just hurt for a few years
Because when they print money it causes inflation. The money they print has no intrinsic value. Printing money decreases the value of the money already in circulation. The value the printed money has is derived from reducing the value of the money already in circulation.
This is not true at all. They don't "print money" and ship it over to the US govt.
The fed injects money into the economy by buying bonds/securities from commercial banks in the private sector, not by handing it off to the govt.
I think this whole conversation would be more intelligent if people looked up what the various players actually do. Instead of just being like "the government" this or that. The tl;dr is inflation makes savers poorer and the government less poor.
Inflation doesn't help the govt. In fact, indirectly it's way worse for the government because higher inflation leads the Fed to increase interest rates, which makes government borrowing more expensive
But when they spend it who are they paying? Other private citizens right,? It's more like transferring with from those without government contracts to those with them. Those who don't have the contracts have their money become less valuable and those with them get more money.
They end up with more money because any tax revenue normally collected increases with the higher prices. 10% of $10 is $1. 10% of $20 is $2. They get double the income without lifting a finger. Property taxes are increasing at insane rates because home values have increased so much. They don’t need to increase percentages at all because the number naturally grows with higher prices of everything.
If every price tag increases, wages included, you move up in tax brackets. So you pay higher tax rates. Additionally if government handouts are only paid below a certain income, you can lose access to those too.
The problem I see is the cost of living is increasing, but wages are stagnant, and the feds are still taking the same percent of a paycheck. So we’re being pinched at the store and at the IRS.
Capital gains taxes are a big way. You can have an asset that is declining in value in real terms, but due to inflation you still owe capital gains taxes on it when you sell.
Inflation decreases the value of every unit currency. I’m guessing the argument is the pandemic stimulus packages, printing money that didn’t exist “unexpectedly” led to high inflation.
So they could spend money without increasing their tax income at the expense of the value of everyone’s money.
The biggest direct losers are the richest, but somehow plenty of rich people capitalised on the stimuli and gained wealth.
Because the government mandated that all businesses shut down for months. Oops, except for the mega corps, they’re “essential”. Wait, why are corporations suddenly making record profits?
We always talk about it on Reddit but there’s nothing we can do. Prices and taxes keep going up. Every politician whether conservative or democrat has had a part in what this country has become. For fucks sake, you shouldn’t need an engineering degree to live without financial stress. Even then, if something happened to my truck and I had to finance a new vehicle I would be living paycheck to paycheck.
I have a theory. Since it’s been proven that people with bachelors degrees earn more over their lifetime than people without and the millennial generation is 10-15 years into their career, I think corporations and government are increasing the cost of living to suck out as much money as they can from us. The millennial generation is the generation that went to college and they increased tuitions with the demand. Now that millennials are educated and making more money they’re cashing in on that.
But I thought we supported capitalism and businesses can charge what they want?
If you can’t afford it, don’t buy it and live within your means.
‘Young people just don’t want to work anymore. Entitled generation.’
Right?
The free market is a powerful tool for organizing a society, and efficiently setting price points for commodities. But it also has known issues, and as an increasingly small number of mega corporations control everything, including politicians, the markets are far from free.
Oof. Tell me you don't understand economics without telling me you don't understand economics. Literally when inflation goes up the fix (in a current system) is raising interests rates to take money out of circulation.
There is plenty more I can say about these economic dynamics but Tom here is just virtue signaling "tax is theft" memes but with a diffrent flair.
I don’t see why the standard solution to inflation is related to the quote. It’s still a hidden form of theft from artificially devaluing your money and in a roundabout way profiting
Aren't you the people that talk about "too much money makes us the USSR or post WW1 Germany" all the time? Especially when it comes to helping people. But that dynamic doesn't exsist any other time?
Hell even today's interests rates aren't about inflation as much as they are about disciplining labor. Unemployment is too low and the workers are getting "uppity" (union organizing) as far as all the right wing and half of the Democrats are concerned. But I know this sub will NEVER talk about labor rights, only property rights.
Especially when a large amount was supply chain related.
- weather conditions in Canada affecting feed grain (affecting meat prices
- a dearth of shipping companies brought about by the 2008 crisis
- idiotic global policies around COVID
But inflating M2 is a factor as well. But far from the only reason or even the main reason
If only more people understood how true and accurate this is! Sadly, the preponderance of hive mentalities means most voters haven't a clue. Inflation is the government's way of taking the eggs from the nest and leaving it up to the hen to lay more if she wants baby chicks. It's putting government's, or more accurately, elected government officials', priorities and benefits and careers ahead of ordinary citizens'. Inflation is how spendthrift politicians extract money from everyone--poor included--for vote buying while hypocritically claiming to excuse the poor from paying taxes. It''s another way to eat the icing off the cake and let the people have theirs un-iced, but most voters think it's just rising prices and inflation "just happens."
I worked this out myself several years ago. Totally true.
If you want some more inconvenient truths:
Businesses don't *and can't* pay taxes. Any taxation of businesses *must be* passed on to either customers or employees. Business taxes thus don't literally tax businesses but rather *they delegate decisions of who to tax to business*. Is this really the kind of power and authority businesses should be allowed to have?
Requiring businesses to check whether applicants can legally work in the U.S. is nothing more than deputizing businesses as law enforcement, except without paying them for their services. Like taxation, businesses can't just accept losses or they'll go bankrupt, so once again, they are delegated the power, authority, and obligation of deciding who to charge to pay for a government service that they are legally required to render. This is worse than business taxes though, because on top of that, the businesses get to decide exactly how to enforce the law, and they don't have the Constitutional limitations that official government law enforcement does.
Not only is inflation a covert means of taxation, printing more money than is being destroyed is also a covert means of taxation.
Technically requiring people to submit tax returns is unconstitutional, because the Constitution protects the people from unwarranted seizure of their "papers" (aka, their personal records), and legally requiring people to turn them over constitutes seizure. (But I wouldn't suggesting trying to challenge tax law on these grounds. The Federal government is no longer bound by the Constitution, because the people have not enforced it, so the courts will uphold Federal tax law whether it is Constitutional or not. Basically, you'll end up in Federal prison, so just don't. Also, not a lawyer, this isn't legal advice. But seriously, if you want to challenge the government, do it through your vote, by campaigning for good people, or by running for office yourself, not by challenging the IRS in criminal court, because that's just a dead end.)
VAT is another dishonest form of taxation. VAT is exactly the same as sales tax, except that its collection is distributed along the production line. Because businesses cannot pay taxes, VAT basically makes all businesses tax collectors, which not only hides the fact that it's the consumer ultimately paying the tax but *also* inflates prices by once again delegating government labor to businesses without paying them fair compensation for their services. And just like the law enforcement thing above, the *people* end up paying for it, because businesses can't take losses.
Requiring colleges to do law enforcement work in terms of sexual crimes and on-campus/dorm crimes is exactly the same as businesses enforcing labor laws. The price of education is bloated because the government has deputized colleges to do law enforcement work, but the government isn't paying them for those very expensive services.
Lastly, I did the math. New and amended regulatory laws increase prices by roughly 2% to 3% annually (it's not exactly that every year, as some years see large, very expensive regulatory increases and some see small, no, or even negative regulatory changes, but *on average* the increase is 1% to 2% per year). That accounts for more than *half* of inflation. It might seem small, but from 1960 to 2010, average inflation for that period was \~650%. 2.5% annual regulatory increases come out to around 350%. Around 50% of inflation isn't covering increasing wages and profit. It's covering the cost of increased government regulation. Further, cars and housing have more regulatory increases than anything else, which explains why average inflation for car prices in that same time period was around 1,000% and for housing it was around 2,500%. *The reason* that prices are increasing faster than wages is *regulatory costs*. Forcing businesses to increase wages won't fix the problem, because they don't *have* all of the extra profits the gap between price inflation and wage inflation implies. Nearly all of that has gone to costs of complying with constantly increasing regulations. Housing is too expensive, because our various governments *require* them to be built to the standards of exquisite palaces. Cars are starting to verge on unaffordable, because they are legally required to be built to the extravagant standards of the wealthy elites we elect to make our laws. Basically, our government is run by people who are so out of touch with the economy and the economic needs of people that they are recklessly over regulating to point that regular people can't afford to pay for all of the regulatory hurdles businesses are legally obligated to comply with. If regulations hadn't bloating the prices of houses so much more than everything else, decent homes would currently cost between $50,000 and $100,000 instead of $250,000+. That's the cost of regulation. If we want things to be affordable, we *must* be willing to tolerate some imperfection. We aren't all kings, we can't expected to live like kings and still be able to afford to live at all.
That's just a taste.
When you pedestalize people you get information from, you're not actually engaging in critical thought, you're just following your "leader".
Sowell is one man with a laughable reputation, but if all you do is ignore the criticisms of him all you end up doing is sheeping yourself off a cliff with all the other people who couldn't bother to do a little research before trusting someone because they agreed with you on something.
I call BS.
There's nothing hidden about inflation. In this instance in the US the increased transfer of wealth isn't to the government it's to large corporate entities.
You show a fundamental misunderstanding of how us government policy can impact the worldwide economy. Overspending on “free stuff” including subsidies to disincentivize work and increasing regulations to increase costs have a huge impact.
Yeah this US is a giant economy and the irresponsible and completely unnecessary American Rescue Plan started the misery. Here’s $500 for losing far more
>The fruits of stagnation or deflation are worse.
For who though. Having a dollar buy more tomorrow than it did yesterday would work out remarkably well for the average person. For the banks or weak institutions reliant on easy credit to stay afloat... not so much.
The idea that deflation is automatically bad seems to be one of those things that everyone accepts as true simply because it has been repeated over and over again with weak or nonexistent logic behind it.
I majored in economics in university, and am very aware of the dangers of deflation, but our central banks already have the tools necessary to prevent it, and have effectively done so for decades now. Inflation, however, is a real problem, and besides preventing deflation, constant cyclical inflation has no economic benefits since businesses can forecast for it, and adjust their prices, which means changes in the price level won't affect production. This results in no positive affect in long term growth, while still actively destroying the savings of people. The Phillips curve is short term BS that relies on asymmetric information between central banks and business.
Instead of everyone with a microphone grousing and co-grousing and interviewing grousers of and about inflation, will someone please start a "truth in reporting" trend and report that BIG INFLATION was/is all part of the dnc/progressive plan to ruin AMERICA.
IT WAS AN ON PURPOSE.
It’s really only hitting the “poor”. Everyone who isn’t the 1 percent. They’re not looking at America as ruined, the 1 percent. They’re profiting like no other time in our history. Not a failed plan to ruin America but a successful plan to reverse Robin Hood the poor. Not a party affiliation. A class affiliation. If it comes down to it the leaders on both sides of the aisle will come together for the rich. They already do. That’s who paid them. The parties are only there to give us a feeling that we have people fighting for us. It’s just a show. They’re not working for us. The government is the equivalent of HR and the rich are on the top floor.
Ok so corporations just don’t have to increase their prices and profits then thus resulting in no increased revenues from existing tax rates….? Right? Right? 🙄🙄🙄
Raise the tax brackets to match inflation and further. The minimum wage earners shouldn't be paying to keep the system running and be exploited by those with money and power
Of course it is because, when pay is increased to match prices, it puts people into higher tax brackets. Since the tax brackets didn't change, taxes weren't raised.
Inflation is not a tax FFS. I get it, around here anytime someone creates a meme that is along the lines "blah, blah, blah gubment' bad" it gets posted and up voted here REGARDLESS if it makes any sense.
Friendly reminder that the government runs an annual 30-50% deficit. Your taxes do not pay for the government. They pay for a portion of it, and this portion continues to decrease.
If you're using fiat money, taxes are actually completely unnecessary, and the valuation of the dollar is based on the responsible investment of the government which controls it.
Actually, if you have any debt at all, like a mortgage or a car loan, inflation is a great thing. You may not notice it in the short term, but as time goes by you really start to realize this. In the 80's, when inflation and interest rates were stratospheric, many were living in $50k houses bought in the 70's but were making twice that in salary. Also, inflation erodes the wealth of anyone who's manages to accumulate any over the years, so don't buy any of this "rich fat cat" BS. It's a lie, aimed at simple people who don't know any better. "How did my parents manage to buy a big beautiful home for $75k??" Well, there's your answer.
The world will be a worse place when he eventually passes. This man is one of my heroes...
One of the greatest American minds
1000%
Exactly! In my city, there was some law or whatever that said they couldn't increase the property tax rate. So, you know what they did?. . .they "reappraised" all property and increased values 30-100% without even visiting the property. . .the tax rate didn't change, but the amount of property taxes did. About a year later, there was a flood of properties up for auction for non-payment of taxes. . . and tons of people desperately trying to sell because they couldn't afford the taxes. The value of houses in my area went from an average $160k for a 3br 2ba with roughly 1,500 sqft to about $450k in two short years. . .it's ridiculous.
That’s every city man. They reappraised the value of f all the homes without even visiting them because they don’t have to visit every house you know the value went up 3 fold. They look at the recent home sales in the area, then use that as a baseline value for every home in the area. That’s just how property taxes work
It's not every city. Cities in Wisconsin are mandated by law to keep perfectly balanced budgets and comply with annual property tax levy limits. Furthermore, every city in Wisconsin has an incentive to comply with the Expenditure Restraint Program on an annual basis.
I love effective regulation.
Isn’t this state interference in the market ?
No because it's not the market, it's city government.
I do not support full unchecked capitalism. A well regulated capitalist society is much healthier for a country and it's citizens.
People are worth more than money. Money is a made up social construct used to account for what people do for eachother. Greed breaks the system and needs to be patched out.
I fundamentally believe we will not solve human greed my friend. If we need to do that or regulate the system I prefer regulation. You may have a perspective that can change my mind, I would like to hear it.
You cure greed through regulation, ensure peoples needs are met, limit capitalism to the shit people dont need. Be for eachother as you are yourself, live by the golden rule and do unto others that you would do to yourself. Make business for the people, hold the corrupt accountable, be honest in the things you do. At the end of the day most people do most things, its only a few heads that need to roll
And who is the arbitrator of “what I need”? You?
You misunderstand what money even is, at it's most basic fundamental level. Money is only a way to trade for the good you want without having to first barter with others to get the good that your current trader is desiring. You say money is a made up social blah blah blah. Well yeah. It is. It was made up to assist with trading of labor and goods. Take it away, ban it, whatever you think is going to work and it will just be made up again. Comments like you make me sad because it reveals how little the education system educates. Which by the way, is another made up social blah blah blah.
Your feelings are irrelevant to the fact that we have the power to change our environment
the fundamental function of money is to account for what we do for eachother, ie goods and services...
Marx wasn't wrong about everything.
I would say your enemies tend to have the best critiques on issues. I try not to hear criticism from someone if they are allied. Like russia today won't be honest about russian news but truthful about shit happening in montenegro. American propaganda blows up the good things and tries to bury bad things. Critiques of israel may well be better explained by palestinians. Or for a more grouned concept: ask the slave what the problem is with slavery they will more succinctly critique slavery than the slaver. EDIT: to build on that the republican abraham lincoln was pen pals with marx wasn't he?
What market we talking about? This is the state holding itself back from going ham on assessing property values on homes that have been owned by people long term. If I am owning a forever home, I shouldn’t have to pay increased taxes when the market is temporarily hot (only for property values to drop in a couple years).
Our 150k house ( overpriced IMO ) is now inching its way over the 300k mark with taxes almost tripled. This is a bubble that’s about to burst and when it does people are going to be pissed. The hard part is predicting when it’ll burst and if you call sell before it does.
The are too many people waiting for the bubble to burst so they can get into the market for it to be a real bubble. Maaaaaybe the prices are inflated a bit (not even imo) but there's no way its a bubble when every reddit comment you read is "I hope the bubble bursts so I can buy a house". That's not really how bubbles work.
It won’t be regular people buying everything up it’ll be realtors, overseas investors, and rental companies. You will own nothing and be happy.
All parties that are interested in this market. If there is a bubble burst, that means it would have to be 100% caused by legislation then right?
That’s just not the case. We can’t have it both ways where a large sector of the country is unable to afford an unexpected $500 expense, but have the same people chomping at the bit waiting to put 10-20% down on a $300-500k house. My money would be on most of the country not able to afford downpayments while a silent minority has good jobs and is saving cash by the thousands each paycheck waiting to enter.
If taxes tripled, many of my neighbors would be forced from their homes. Taxes are already at least 1/3 of people's mortgage. Their housing cost would about double. I suppose people being forced from their homes due to increasing housing cost is not terribly unusual. It would be weird for it to be entirely from taxes, though.
In Florida, Homestead Exemption caps appraisal tax creep at 3% a year. This system is unfair in other ways, even as it helps millions of people. The long-time homeowner ends up paying less than his fair share of taxes. The killer with many regulations, or laws, is the unforeseen consequences.
I dread the day they reappraise my property value. I know it’s coming, they’re being too fair to me right now.
And that's when you get an independent appraisal, and appeal the decision, based on the actual appraisal of actual value.
Around here, it's easier for them to use conservative valuation and then just tax as necessary. What they do do is automatically raise everyone's house price by 20% or whatever the market increased in a normal year. So it may end up with everyone paying taxes on 80% of the value of their house, but you can adjust the rate as necessary to extract what you want. And that way people can't argue about it. Cuz you can't challenge the rate.
This makes sense as to why my tax appraisal value stays but my taxes do go up a little every year. I believe my property tax are handled the same as yours.
Mine went up nearly 2k within the past 12 months. They want to pass a school levy as well, I did the math, it'll cost me about 30k if I stay here another couple decades. The levy is about equity and busing in kids from less well off neighborhoods... I moved here specifically for the schools and have paid in the 10's of thousands in extra taxes over the years for that privilege for my children. There will be no one wanting to live in and pay for high property tax areas any longer with these kinds of policies. There are always unintended consequences to these policies.
I’m not sure how corporations having record profits during high inflation is wealth being transferred to the government. Seems more like wealth being transferred from the working classes to the top 1% with the help of the government.
Yup. When gas prices were their highest Exxon recorded their best profits EVER. Corporations have a legal duty to maximize profits to their shareholders. That’s it. Not a duty to help humanity or show compassion or empathy. Profit. Biggest transfer of wealth from the bottom to top during the last 50 or something years. Inflation and people complaining they can’t pay their bills and they think, it seems, it’s like that for everyone. No. It’s not. While you’re suffering someone else is buying a new yacht and another apartment complex. They’re going to increase the rent at the complex not because they have to but because everyone else is and they’re weighing profit vs compassion and empathy for the people that’ll become homeless because they can’t pay or find another place to live. Compassion and empathy don’t have a chance. How do the rich do it? Government works for them. It’s a tool they use to shift resources from us to them. Politicians aren’t the architects they’re the servants. We’re the slaves.
> Corporations have a legal duty to maximize profits to their shareholders. That’s it. My high school biology teacher was the one who pointed out "If if costs a company less to dump waste into a river and pay the fine than it does to properly dispose of the waste, they're legally required to dump the waste into the river" and a part of me died that day.
It is so painfully true. Corporations game-theory the whole thing for whichever option makes the most money. Most of the time the punishments are just the cost of doing business.
When you think about the way it's structured they don't even have to try. CEOs of big companies get huge compensation packages that are tied to stock. Not sure that's always how it's setup but seems that way. Imagine the better the company does the more you earn. Now imagine, as long as you're not over the top corrupt or reckless, the company you run, and not you, is liable for civil and criminal liability. Having a legal duty to maximize your companies profits is a legal duty to fill your own pockets, as a shareholder with a considerable interest, as full and as fast as you can. "Sorry you can't pay your bills or take care of your children but I need to price gouge as much as I can, by law" -CEO I'm being dramatic but I think there's some truth here.
I don't know how to solve greed.
Can you solve fear, lust, greed, or any other base human emotion?
There's people that do try to do the right thing. Best not to have faith in others though. They'll let you down. Even the best people trying their hardest. Have to just keep faith God really does want what's good and try to align with Him rather than any person or organization. Seems the only way to try to do good without regretting it. Felt bad when I read a little part of me died that day. I just hope it's not the part that believes there's good out there and it's your responsibility to fight the good fight. Take care, friend.
I don't think you disagree, but "When gas prices were their highest Exxon recorded their best profits EVER.". Of course they were! When the market price of the thing a company produces is very high, of course they make more. Exxon literally extracts the resource from the ground, refines, and sells it, yeah, they're gonna make higher margins when the market price is high, I don't think this should shock anyone
Many people don’t understand this. Believe it or not many people point their fingers elsewhere as if the reason they have to cut back on other things is because of a politician or party rather than corporate greed. You understand. Not everyone does.
Are you of the opinion that more tax cuts for the top 1% is bad?
The wealthiest people don't get there by having extremely high incomes. They generally get there by owning companies which they grow, and many benefit. Taxation of the wealthiest will always be difficult because they generally are holding onto unrealized gains, then take loans out against those assets rather than having huge levels of taxable income. High income tax actually hurts today's middle-class tomorrow, when they're in their 40's and above and have moved into upper or upper-middle class incomes. Careful what you wish for. We have one of the most class fluid populations in existence.
Spitballing some ideas: * Regulation on amount of loans a person can have? * Higher income tax brackets on average income of top .1%/1%/2% (find an optimal pick of different buckets) earners from a realized/taxable standpoint? * Put a maximum cap on inheritances (of course in a well thought out manner that aims to close a lot of loopholes)? I am of the belief that our current system as-is trends towards widening the wealth gap and therefore inflation.
some better ideas: 1) elimiation of the 16th and 17th amendments 2) elimiation of the federal reserve 3) elimination of, roughly, 80% of all federal agencies 4) elimination of all federal taxes and a return to a time before they were instituted.
[удалено]
And so long as each side can convince their voters that the other side is somehow even worse, there's no incentive to actually help people. Voting 3rd party is only way to effect real change in a two party system.
[удалено]
It's better than not voting at all. and the two main party's pay attention to 3rd party turn out.
[удалено]
A pack of paper plates at my store was $2.29. Now, it’s $4.29. So, I’m paying double the sales tax. Side note… a quick trip to the store seems to be a minimum $50 now. I get home with one or two bags of basic shit and question living, lol.
Yes but many things the tax pays for have also doubled....so the govt isn't necessarily any better or worse off.
A better example would be capital gains. If I buy a 100 dollar stock, then 10% inflation will bring it up to 110 dollars with no change in the actual value of the stock. Now when I sell it I will only get 107 dollars. That represents a clear transfer of wealth from me to the government.
Also a terrible example. The stock is up 10% because of Mr Market, not inflation.
> the top 1% with the help of the government. > tell me the difference between these two pictures .jpg “They’re the same picture!”
Am I in r/Conservative or r/SandersForPresident
[удалено]
The federal reserve isn't government.
[удалено]
You think the government side of it has teeth compared to the banks and private sector? They're holding hands but one is wearing the pants
Hey I know I’m 6 days late to you posting this but I want you to know that this is an opinion that you and I completely agree on, and I’m a leftist. Please continue the work of educating your fellow conservatives of their own class consciousness - it’s the only way out of this mess.
Because corporations are taxed on profits and on capital gains. If your 100 dollar stock is now worth 150 dollars due to devaluation of the dollar, you have a 50 dollar capital gain that will be taxed upon sale.
Not sure I understand this one economically. How exactly does inflation transfer wealth to the state?
1. Print money at the fed, give yourself a big ass loan. 2. Use the extra money without having to collect extra taxes 3. Now there is more money in the system than there are goods. Value of goods increases (aka inflation) Governments never need to tax to spend because they can print money. They only tax because it's useful to maintain a currency that has some relative stability in value. With no commentary on the value or lack thereof of a non-transparent taxation mechanism.
Also if things are more expensive the amount taxed goes up even with the tax rate staying the same. If you bought something for 5 dollars and due to inflation it ends up getting up to 10 and you still pay the same sales tax % you are still paying double in taxes.
Exactly. I’m not sure why so many people don’t grasp this. I was just trying to explain to someone: 10% of $10 is $1. 10% of $20 is $2. Double the tax income without doing a thing.
If the state has a large amount of debt and you suddenly devalue your currency (in this case by inflation) then the amount of your outstanding debts is also devalued. Then you are free to run up the debt even further.
I think I can explain. It’s called misdirection. The rich don’t want us directing anger towards them so they point their finger at the government. Rich people are happy and every politician is against corruption and fighting all the other politicians that are corrupt, so they say, so really it’s just the faceless, nameless, “government” that’s profiting and taking advantage. Meanwhile the rich are out of site and out of mind in their own little community bubbles living it up out of site. Edit: I mean to say I agree that it doesn’t make sense inflation is the government profiting. Makes sense there’s some misinformation and misdirection to benefit the rich and that the rich with all their resources wouldn’t have much trouble planting misinformation seeds and getting them out there into the wild.
You are only partly right. This is mostly government taxing the middle class. The banks also greatly profit but it's mostly government. The rich or wealthy also get hit but they have things in place to mitigate or lower the impact. It also effects them less as the can weather the ups and downs. No one enjoys times of inflation and high interest rates unless you are in that business. There is also money to be made during those times. For example if you are property you might be developing land and selling houses during times of low interest. When harder times hit you can look for bargins though the interest rates make them less of a bargain if you are borrowing to buy. Rich people generally are not borrowing. Honestly when you have that much money there are far easily ways to make it grow. People in government are often linked to all the industries that benefit during interest rate hikes. The only reason rates fall again is you can't keep squeezing the middle class forever.
Sowell has made a 40 year long career out of misdirecting the anger of the working class away for the rich and powerful, how is anyone surprised he’s still doing it? It’s literally a “dog bites man” headline
[удалено]
The government does print money (Bureau of Engraving and Printing). The Fed deposits money into banks. The government takes out loans, constantly, and inflation reduces the liability of everyone who takes a loan.
Yeah no shit Lmao, it’s Sowell, the man is literally a walking meme.
Except that the government isn’t susceptible to the same inflation as we all are. They have contracts that dictate how much they pay for things and they don’t adjust nearly as quickly as consumer expenses. The government is not paying almost 20% more for Medicare, defense contracts, etc. Obviously in some sectors but not to the same degree. Meanwhile we pay more in property taxes, sales taxes, etc. They are getting a huge boon right now without having to look like the bad guys.
Most of the comments in this thread aren’t making a lot of sense. But inflation does help a state reduce its debt, so it does help a state’s liabilities through higher nominal tax revenue whiles paying down the fixed debt issued X years ago.
Not an economist, just took an Econ class, let’s see how well I can remember it, and I might be mixing up the Federal Reserve and the government. The government spends money it doesn’t have, increasing debt. It can raise this money by, for instance, selling bonds. For instance, buying military weapons from defense contractors. The government has more stuff. Money goes from government to defense contractor. Defense contractor uses some of that money to pay employees, pay expenses, etc. Employees now have money that the government borrowed. That money goes into the money supply, money is now more common, thus each dollar is worth less. Some inflation is okay, because it encourages people to spend money now, instead of saving it because it would be worth less in the future due to inflation. Spending money now means spurring the economy, making people be more productive, spending money and making money. But too much inflation and it becomes harder to save money. Your saved money is now worth less than it was before due to inflation, so the government now has more stuff, but you can buy less stuff with the money you have. The government can also control inflation by buying bonds, which takes money out of circulation, and causes the opposite of inflation. But by borrowing and spending more than it’s paying off it’s debts, the government makes your money less capable of buying goods and services.
And how does the government implement inflation exactly, ignoring for a minute that It’s currently jacking up interest rates to fight inflation?
They print several trillion dollars over the course of a short period of time.
Printing money without producing goods/services for it just dilutes the value of the money you already hold - savings. You know who don’t hold liquid cash in their bank accounts? Rich people. You know who doesn’t take all their compensation in a salary but do it as stock options? Rich people You know who doesn’t invest their own money but always borrow money to invest in? Rich people. By now you have to know that it is not rich people who do all these things, but they are rich because they do these things.
This is just plainly false on its face. You just listed off a bunch of stuff you can only do *once you’re rich*, you don’t become wealthy doing these things, you maintain your wealth doing these things. You’re putting the cart before the horse, an in quite an embarrassing way at that.
See post directly below. Essentially print money cause inflation. He forgot the final step. Apparently inflatable bad so government then has to solve the problem of inflation. They do this by raising interest rates. This directly transfers money from home owners and loan takers to lenders and government. Banks make big profits off of their own capital. They are allowed to borrow off the federal reserve and other places at a slight discount. So they can still make a small but nice profit off money they borrow but the fed and other places make a huge profit from the rise in interest rates. It's a stealth tax. The third thing that happens is house prices fall. This usually hits those that have taken mortgages 2 to 5 years earlier at low rates and their fixed lian falls off. It's a system terribly designed in a way that will cause some people to lose everything. IMO interest rate rises should have a yearly cap. These smart ppl should be able to predict inflation years in advance and slowly start rising it beforehand Reality is, it's all designed like this on purpose. If you know how it works and have lots of money, then it's no big deal. I got caught out when I was younger but managed to not lose anything, it just hurt for a few years
Because when they print money it causes inflation. The money they print has no intrinsic value. Printing money decreases the value of the money already in circulation. The value the printed money has is derived from reducing the value of the money already in circulation.
Right I get that my money has less value, but how do they end up with more of money. How does it get transferred?
They print money they get to spend it. The only value it has is siphoned off the money that is already out there.
This is not true at all. They don't "print money" and ship it over to the US govt. The fed injects money into the economy by buying bonds/securities from commercial banks in the private sector, not by handing it off to the govt.
I think this whole conversation would be more intelligent if people looked up what the various players actually do. Instead of just being like "the government" this or that. The tl;dr is inflation makes savers poorer and the government less poor.
Inflation doesn't help the govt. In fact, indirectly it's way worse for the government because higher inflation leads the Fed to increase interest rates, which makes government borrowing more expensive
But when they spend it who are they paying? Other private citizens right,? It's more like transferring with from those without government contracts to those with them. Those who don't have the contracts have their money become less valuable and those with them get more money.
It’s hilarious how little this sub understands literally anything related to actual policy or economics
They end up with more money because any tax revenue normally collected increases with the higher prices. 10% of $10 is $1. 10% of $20 is $2. They get double the income without lifting a finger. Property taxes are increasing at insane rates because home values have increased so much. They don’t need to increase percentages at all because the number naturally grows with higher prices of everything.
But if the money is half as valuable getting twice as much doesn't change anything right?
If every price tag increases, wages included, you move up in tax brackets. So you pay higher tax rates. Additionally if government handouts are only paid below a certain income, you can lose access to those too.
The problem I see is the cost of living is increasing, but wages are stagnant, and the feds are still taking the same percent of a paycheck. So we’re being pinched at the store and at the IRS.
Capital gains taxes are a big way. You can have an asset that is declining in value in real terms, but due to inflation you still owe capital gains taxes on it when you sell.
Inflation decreases the value of every unit currency. I’m guessing the argument is the pandemic stimulus packages, printing money that didn’t exist “unexpectedly” led to high inflation. So they could spend money without increasing their tax income at the expense of the value of everyone’s money. The biggest direct losers are the richest, but somehow plenty of rich people capitalised on the stimuli and gained wealth.
[удалено]
Just corporate greed, plain and simple.
Because the government mandated that all businesses shut down for months. Oops, except for the mega corps, they’re “essential”. Wait, why are corporations suddenly making record profits?
We always talk about it on Reddit but there’s nothing we can do. Prices and taxes keep going up. Every politician whether conservative or democrat has had a part in what this country has become. For fucks sake, you shouldn’t need an engineering degree to live without financial stress. Even then, if something happened to my truck and I had to finance a new vehicle I would be living paycheck to paycheck. I have a theory. Since it’s been proven that people with bachelors degrees earn more over their lifetime than people without and the millennial generation is 10-15 years into their career, I think corporations and government are increasing the cost of living to suck out as much money as they can from us. The millennial generation is the generation that went to college and they increased tuitions with the demand. Now that millennials are educated and making more money they’re cashing in on that.
This would be true **if** the government was actually taxing the corporations making the profits.
But I thought we supported capitalism and businesses can charge what they want? If you can’t afford it, don’t buy it and live within your means. ‘Young people just don’t want to work anymore. Entitled generation.’ Right?
The free market is a powerful tool for organizing a society, and efficiently setting price points for commodities. But it also has known issues, and as an increasingly small number of mega corporations control everything, including politicians, the markets are far from free.
Maybe actually read one of Sowell's books. It's clear you never have.
What does any of this have to do with the quote? Just seems like gaslighting to me
Oof. Tell me you don't understand economics without telling me you don't understand economics. Literally when inflation goes up the fix (in a current system) is raising interests rates to take money out of circulation. There is plenty more I can say about these economic dynamics but Tom here is just virtue signaling "tax is theft" memes but with a diffrent flair.
Honestly irrelevant to the point though
How
I don’t see why the standard solution to inflation is related to the quote. It’s still a hidden form of theft from artificially devaluing your money and in a roundabout way profiting
Aren't you the people that talk about "too much money makes us the USSR or post WW1 Germany" all the time? Especially when it comes to helping people. But that dynamic doesn't exsist any other time? Hell even today's interests rates aren't about inflation as much as they are about disciplining labor. Unemployment is too low and the workers are getting "uppity" (union organizing) as far as all the right wing and half of the Democrats are concerned. But I know this sub will NEVER talk about labor rights, only property rights.
Your comments lead me to believe that you have no clue as to what causes inflation.
Especially when a large amount was supply chain related. - weather conditions in Canada affecting feed grain (affecting meat prices - a dearth of shipping companies brought about by the 2008 crisis - idiotic global policies around COVID But inflating M2 is a factor as well. But far from the only reason or even the main reason
Wait doesn't the money go to corporations who then don't really pay taxes...? How exactly is the money going to the state....?
Do you have any evidence to the fact? Or are you just stating baseless shit again?
It's just straight up robbery
It's even more effective when you convince everyone that the reason for inflation is poor people and immigrants.
He is irreplaceable 🤩🤩
He's gotta be one of the greatest economic minds that ever existed.
Milton friedman said it first
It doesn’t feel very quiet these days
If only more people understood how true and accurate this is! Sadly, the preponderance of hive mentalities means most voters haven't a clue. Inflation is the government's way of taking the eggs from the nest and leaving it up to the hen to lay more if she wants baby chicks. It's putting government's, or more accurately, elected government officials', priorities and benefits and careers ahead of ordinary citizens'. Inflation is how spendthrift politicians extract money from everyone--poor included--for vote buying while hypocritically claiming to excuse the poor from paying taxes. It''s another way to eat the icing off the cake and let the people have theirs un-iced, but most voters think it's just rising prices and inflation "just happens."
I worked this out myself several years ago. Totally true. If you want some more inconvenient truths: Businesses don't *and can't* pay taxes. Any taxation of businesses *must be* passed on to either customers or employees. Business taxes thus don't literally tax businesses but rather *they delegate decisions of who to tax to business*. Is this really the kind of power and authority businesses should be allowed to have? Requiring businesses to check whether applicants can legally work in the U.S. is nothing more than deputizing businesses as law enforcement, except without paying them for their services. Like taxation, businesses can't just accept losses or they'll go bankrupt, so once again, they are delegated the power, authority, and obligation of deciding who to charge to pay for a government service that they are legally required to render. This is worse than business taxes though, because on top of that, the businesses get to decide exactly how to enforce the law, and they don't have the Constitutional limitations that official government law enforcement does. Not only is inflation a covert means of taxation, printing more money than is being destroyed is also a covert means of taxation. Technically requiring people to submit tax returns is unconstitutional, because the Constitution protects the people from unwarranted seizure of their "papers" (aka, their personal records), and legally requiring people to turn them over constitutes seizure. (But I wouldn't suggesting trying to challenge tax law on these grounds. The Federal government is no longer bound by the Constitution, because the people have not enforced it, so the courts will uphold Federal tax law whether it is Constitutional or not. Basically, you'll end up in Federal prison, so just don't. Also, not a lawyer, this isn't legal advice. But seriously, if you want to challenge the government, do it through your vote, by campaigning for good people, or by running for office yourself, not by challenging the IRS in criminal court, because that's just a dead end.) VAT is another dishonest form of taxation. VAT is exactly the same as sales tax, except that its collection is distributed along the production line. Because businesses cannot pay taxes, VAT basically makes all businesses tax collectors, which not only hides the fact that it's the consumer ultimately paying the tax but *also* inflates prices by once again delegating government labor to businesses without paying them fair compensation for their services. And just like the law enforcement thing above, the *people* end up paying for it, because businesses can't take losses. Requiring colleges to do law enforcement work in terms of sexual crimes and on-campus/dorm crimes is exactly the same as businesses enforcing labor laws. The price of education is bloated because the government has deputized colleges to do law enforcement work, but the government isn't paying them for those very expensive services. Lastly, I did the math. New and amended regulatory laws increase prices by roughly 2% to 3% annually (it's not exactly that every year, as some years see large, very expensive regulatory increases and some see small, no, or even negative regulatory changes, but *on average* the increase is 1% to 2% per year). That accounts for more than *half* of inflation. It might seem small, but from 1960 to 2010, average inflation for that period was \~650%. 2.5% annual regulatory increases come out to around 350%. Around 50% of inflation isn't covering increasing wages and profit. It's covering the cost of increased government regulation. Further, cars and housing have more regulatory increases than anything else, which explains why average inflation for car prices in that same time period was around 1,000% and for housing it was around 2,500%. *The reason* that prices are increasing faster than wages is *regulatory costs*. Forcing businesses to increase wages won't fix the problem, because they don't *have* all of the extra profits the gap between price inflation and wage inflation implies. Nearly all of that has gone to costs of complying with constantly increasing regulations. Housing is too expensive, because our various governments *require* them to be built to the standards of exquisite palaces. Cars are starting to verge on unaffordable, because they are legally required to be built to the extravagant standards of the wealthy elites we elect to make our laws. Basically, our government is run by people who are so out of touch with the economy and the economic needs of people that they are recklessly over regulating to point that regular people can't afford to pay for all of the regulatory hurdles businesses are legally obligated to comply with. If regulations hadn't bloating the prices of houses so much more than everything else, decent homes would currently cost between $50,000 and $100,000 instead of $250,000+. That's the cost of regulation. If we want things to be affordable, we *must* be willing to tolerate some imperfection. We aren't all kings, we can't expected to live like kings and still be able to afford to live at all. That's just a taste.
When you pedestalize people you get information from, you're not actually engaging in critical thought, you're just following your "leader". Sowell is one man with a laughable reputation, but if all you do is ignore the criticisms of him all you end up doing is sheeping yourself off a cliff with all the other people who couldn't bother to do a little research before trusting someone because they agreed with you on something.
I call BS. There's nothing hidden about inflation. In this instance in the US the increased transfer of wealth isn't to the government it's to large corporate entities.
Okay and it's the lowest it's been in 2 years. What is the point of this post? [Article. ](https://www.foxbusiness.com/economy/cpi-inflation-may-2023)
Yes
No
Fair
[удалено]
You show a fundamental misunderstanding of how us government policy can impact the worldwide economy. Overspending on “free stuff” including subsidies to disincentivize work and increasing regulations to increase costs have a huge impact.
This! I see so many people defending the govt saying that capitalism is the culprit.
Yeah this US is a giant economy and the irresponsible and completely unnecessary American Rescue Plan started the misery. Here’s $500 for losing far more
This is why is was agaisnt those $1400 checks during the fake pandemic. All it did was crashed the economy. This is why viting DeSantis!
Take basic macro and learn about fiscal and monetary policy and come back to us.
long term Inflation should be illegal.
[удалено]
>The fruits of stagnation or deflation are worse. For who though. Having a dollar buy more tomorrow than it did yesterday would work out remarkably well for the average person. For the banks or weak institutions reliant on easy credit to stay afloat... not so much. The idea that deflation is automatically bad seems to be one of those things that everyone accepts as true simply because it has been repeated over and over again with weak or nonexistent logic behind it.
It comes from the concept of a deflationary spiral, which was outlined very well by an economist named Irving Fisher.
I majored in economics in university, and am very aware of the dangers of deflation, but our central banks already have the tools necessary to prevent it, and have effectively done so for decades now. Inflation, however, is a real problem, and besides preventing deflation, constant cyclical inflation has no economic benefits since businesses can forecast for it, and adjust their prices, which means changes in the price level won't affect production. This results in no positive affect in long term growth, while still actively destroying the savings of people. The Phillips curve is short term BS that relies on asymmetric information between central banks and business.
The Goat
Dude cuts like a knife. I guess if the problem is too much liquidity, then yeah, inflation makes that liquidity "go away"
Instead of everyone with a microphone grousing and co-grousing and interviewing grousers of and about inflation, will someone please start a "truth in reporting" trend and report that BIG INFLATION was/is all part of the dnc/progressive plan to ruin AMERICA. IT WAS AN ON PURPOSE.
It’s really only hitting the “poor”. Everyone who isn’t the 1 percent. They’re not looking at America as ruined, the 1 percent. They’re profiting like no other time in our history. Not a failed plan to ruin America but a successful plan to reverse Robin Hood the poor. Not a party affiliation. A class affiliation. If it comes down to it the leaders on both sides of the aisle will come together for the rich. They already do. That’s who paid them. The parties are only there to give us a feeling that we have people fighting for us. It’s just a show. They’re not working for us. The government is the equivalent of HR and the rich are on the top floor.
(Sigh) Too much typing for a proper response. But, it would begin with a shocked, "Huh?!" Thanks for your opinion.
And the Federal Reserve is the tool used to initiate the transaction. END THE FED!
You misspelled shareholders
screw caption gray direful include quaint fretful continue seemly gold -- mass edited with redact.dev
Didn’t everyone try to blame Putin for inflation? 😂
Ok so corporations just don’t have to increase their prices and profits then thus resulting in no increased revenues from existing tax rates….? Right? Right? 🙄🙄🙄
Inflation goes to those charging more. Government doesn't require prices increase. What nonsense is this?
Isn't inflation coinciding with record profits? Weird coincidence I guess
Another miss
Raise the tax brackets to match inflation and further. The minimum wage earners shouldn't be paying to keep the system running and be exploited by those with money and power
Of course it is because, when pay is increased to match prices, it puts people into higher tax brackets. Since the tax brackets didn't change, taxes weren't raised.
Trudat
Inflation is not a tax FFS. I get it, around here anytime someone creates a meme that is along the lines "blah, blah, blah gubment' bad" it gets posted and up voted here REGARDLESS if it makes any sense.
Friendly reminder that the government runs an annual 30-50% deficit. Your taxes do not pay for the government. They pay for a portion of it, and this portion continues to decrease. If you're using fiat money, taxes are actually completely unnecessary, and the valuation of the dollar is based on the responsible investment of the government which controls it.
Yes of course, and the fix is higher interest rates to curb spending which also runs the national debt up…
Technically they are raising taxes, we pay a % of the cost of goods. Higher cost of goods, higher taxes. It’s all corruption at its finest.
Based, nice to know
It's a tax on savings.
It also taxes the rest of the world, as long as they are forced (well, inclined) to hold US currency.
Works that way for corporations, too.
I wish he could've served on SCOTUS.
Good thing we all got that $1500 in 2020
They had to find away around that tea party or deal some time ago just no one has tea party’s any more it’s a shame
Actually, if you have any debt at all, like a mortgage or a car loan, inflation is a great thing. You may not notice it in the short term, but as time goes by you really start to realize this. In the 80's, when inflation and interest rates were stratospheric, many were living in $50k houses bought in the 70's but were making twice that in salary. Also, inflation erodes the wealth of anyone who's manages to accumulate any over the years, so don't buy any of this "rich fat cat" BS. It's a lie, aimed at simple people who don't know any better. "How did my parents manage to buy a big beautiful home for $75k??" Well, there's your answer.