Lennart Thornros <lenn...@thornros.com> wrote:
> It cannot be true that you think there is no inflation.. > There has been very little overall inflation. Obviously, some things have gotten expensive, but others are cheaper. For example, eggs are expensive because of avian influenza. On the other hand, coal, oil and gas are record low costs (relative to other commodities, adjusted for inflation). People spend a lot more on fossil fuel than on eggs. > What about my exampla. If there is no inflation why does the government > need to increase taxes and fees?? > Some governments increased some taxes and fees after 2008 because the economy collapsed and government income declined drastically. Not because there was inflation. Overall, government collected less money than it did before the crisis. Totals: 2007 $5.1 trillion 2006 $4.6 trillion 2010 $4.7 trillion 2014 $5.8 trillion (finally recovered) http://www.usgovernmentrevenue.com/year_revenue_2014USbn_16bs1n#usgs302 > Yes there are tendencies at deflation because of all manipulations. > No one can manipulate something as large as the U.S. economy enough to hide something like general inflation. No one has that kind of power. The U.S. GDP is $17 trillion. You cannot deliberately suppress (or enhance) the price of any commodity or group of commodities enough to make a difference. Eggs could cost $10 each and it would barely register. It would be swamped by the falling cost of natural gas, coal and oil. > As I said before there is a hidden inflation. > No, there isn't. No one can hide significant inflation. You are repeating a right-wing urban myth. You can only hide very small inflation for products that economists in the government, the banks, investment companies and elsewhere do not monitor. The price change of any commodity that plays a measurable role in the economy, such as eggs, will be noted by the economists. They have computers. Supercomputers. They monitor prices and the overall economy in enormous detail. > Fees and other governmental charges are increasing. > No, they are not, and even if they were, this is a small part of the economy compared to natural gas, which is plummeting in price, as I said. - Jed
