Thus said Von Fugal on Fri, 05 Dec 2008 12:39:14 MST: > I feel that inflation is inevitable in many respects. Well > distributed, limited inflation is acceptable and manageable.
Are you talking about monetary inflation (the classical definition of inflation) or the more modern definition of price inflation? And why is it ever acceptable and manageable? If we all awoke tomorrow morning and found that all our bank accounts had evenly doubled overnight, how would that benefit anyone? The only people that would actually benefit are those who woke up earlier and discovered the increase sooner. They would then spend their money, thus driving up prices for the late comers (or those who thought to be prudent and save it). Late comers would find that their infusion of money wouldn't buy as much as those who spent their money early on in the process. Eventually overall higher prices would reflect the new situation of the doubling of the money supply. Those who had acquired goods and increased their capital wealth early on would end up wealthier, and those who didn't end up poorer. > If taxation is the exact same thing, then, why not just tax? Why > inflate instead? Taxation is such a distasteful thing. Nobody gets elected on higher taxes. This is why democratic governments are so able to wage war. If we had to pay taxes for all the wars we get, the costs would be unbearable. Andy -- [-----------[system uptime]--------------------------------------------] 10:33pm up 2:04, 1 user, load average: 1.04, 1.01, 0.99 /* PLUG: http://plug.org, #utah on irc.freenode.net Unsubscribe: http://plug.org/mailman/options/plug Don't fear the penguin. */
