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Author Topic: These FIVE men control your freedom  (Read 4939 times)

Shasarak

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Re: These FIVE men control your freedom
« Reply #135 on: March 03, 2021, 06:34:05 PM »
Before you get too far along on the high horse, keep in mind that the left has been demanding a chance to dip repeatedly into inherited wealth via taxation for a while.

In other words, you might have to spend it because your kids sure aren't going to get the chance.

Wealth Tax is fucking bullshit.
We already have a wealth tax. In the US, it works out to about 2% of everyone's income AND their savings being taxed away, every year. They just try to hide it as "inflation".

Inflation is not a tax on wealth, it is a tax on cash.
If you have $10,000 in the bank, and prices inflate by 2%, your $10,000 is worth 2% less, the same as if you were taxed 2%.

You use your $10,000 in the bank to buy a $10,000 house.  Prices inflate by 2% so now your house is worth 2% more.
There will be poor always,
pathetically struggling,
look at the good things you've got! -  Jesus

Pat

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Re: These FIVE men control your freedom
« Reply #136 on: March 03, 2021, 08:45:27 PM »
Before you get too far along on the high horse, keep in mind that the left has been demanding a chance to dip repeatedly into inherited wealth via taxation for a while.

In other words, you might have to spend it because your kids sure aren't going to get the chance.

Wealth Tax is fucking bullshit.
We already have a wealth tax. In the US, it works out to about 2% of everyone's income AND their savings being taxed away, every year. They just try to hide it as "inflation".

Inflation is not a tax on wealth, it is a tax on cash.
If you have $10,000 in the bank, and prices inflate by 2%, your $10,000 is worth 2% less, the same as if you were taxed 2%.

You use your $10,000 in the bank to buy a $10,000 house.  Prices inflate by 2% so now your house is worth 2% more.
Not how it works. Inflation doesn't happen uniformly across the economy. Gold and real estate, for instance, are good hedges against inflation.

As long the government gets their 2%, they're happy. And they make sure their friends (the rich) are relatively protected, while everyone else (regular folks) take most of the hit.

Shasarak

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Re: These FIVE men control your freedom
« Reply #137 on: March 03, 2021, 08:47:09 PM »
Before you get too far along on the high horse, keep in mind that the left has been demanding a chance to dip repeatedly into inherited wealth via taxation for a while.

In other words, you might have to spend it because your kids sure aren't going to get the chance.

Wealth Tax is fucking bullshit.
We already have a wealth tax. In the US, it works out to about 2% of everyone's income AND their savings being taxed away, every year. They just try to hide it as "inflation".

Inflation is not a tax on wealth, it is a tax on cash.
If you have $10,000 in the bank, and prices inflate by 2%, your $10,000 is worth 2% less, the same as if you were taxed 2%.

You use your $10,000 in the bank to buy a $10,000 house.  Prices inflate by 2% so now your house is worth 2% more.
Not how it works. Inflation doesn't happen uniformly across the economy. Gold and real estate, for instance, are good hedges against inflation.

As long the government gets their 2%, they're happy. And they make sure their friends (the rich) are relatively protected, while everyone else (regular folks) take most of the hit.

So then what is your inflation figure for real estate? I am happy to use what ever figure you prefer.
There will be poor always,
pathetically struggling,
look at the good things you've got! -  Jesus

Pat

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Re: These FIVE men control your freedom
« Reply #138 on: March 03, 2021, 09:01:52 PM »
So then what is your inflation figure for real estate? I am happy to use what ever figure you prefer.
What does that have to do with anything?

Shasarak

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Re: These FIVE men control your freedom
« Reply #139 on: March 03, 2021, 09:09:26 PM »
So then what is your inflation figure for real estate? I am happy to use what ever figure you prefer.
What does that have to do with anything?

That really sums it all up nicely, thank you.
There will be poor always,
pathetically struggling,
look at the good things you've got! -  Jesus

jhkim

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Re: These FIVE men control your freedom
« Reply #140 on: March 04, 2021, 01:42:03 PM »
You use your $10,000 in the bank to buy a $10,000 house.  Prices inflate by 2% so now your house is worth 2% more.

Not how it works. Inflation doesn't happen uniformly across the economy. Gold and real estate, for instance, are good hedges against inflation.

As long the government gets their 2%, they're happy. And they make sure their friends (the rich) are relatively protected, while everyone else (regular folks) take most of the hit.

In general, I think that the government does indeed favor the rich.

However, inflation does not seem to be a good example of this. It mostly hurts those who keep their savings as cash, as Shasarak said. For those who invest their money reasonably, it doesn't hurt. For those with little savings, it also doesn't hurt much - and it can help those who are in debt.

That makes it an incentive for the rich to invest their cash, making the economy more mobile. My impression from most economists is that a moderate level of inflation (1-2%) is good for the economy for this reason.

Pat

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Re: These FIVE men control your freedom
« Reply #141 on: March 04, 2021, 02:14:51 PM »
You use your $10,000 in the bank to buy a $10,000 house.  Prices inflate by 2% so now your house is worth 2% more.

Not how it works. Inflation doesn't happen uniformly across the economy. Gold and real estate, for instance, are good hedges against inflation.

As long the government gets their 2%, they're happy. And they make sure their friends (the rich) are relatively protected, while everyone else (regular folks) take most of the hit.

In general, I think that the government does indeed favor the rich.

However, inflation does not seem to be a good example of this. It mostly hurts those who keep their savings as cash, as Shasarak said. For those who invest their money reasonably, it doesn't hurt. For those with little savings, it also doesn't hurt much - and it can help those who are in debt.

That makes it an incentive for the rich to invest their cash, making the economy more mobile. My impression from most economists is that a moderate level of inflation (1-2%) is good for the economy for this reason.
Inflation has two definitions. One, is an increase in the money supply. The Fed (electronically) printing more dollars, for instance. The other is a measure of the rise of prices. This is traditionally measured by the consumer price index, but that's a very bad measure because it's tied to basket of household goods, and thus doesn't account for price increases in other key areas, like housing, healthcare, education, or the entire capital goods sector. The two definitions are related, because inflating the money supply does lead to higher prices, though it's not a precise 1:1 ratio, there's a lag, and it's not evenly distributed throughout the economy. Specifically, the people who benefit most from monetary inflation are those who get the new money first, and are thus able to spend it (invest it) before the prices rise. The losers are the people who get the new money last, and thus have to buy things at the newly inflated prices.

When a central bank creates money, the people who get the new money first are the bankers, who then loan it to the capital sector. The people who get the new money last are consumers, because they have to wait for the money to wind its way through the capital sector before it increases wages. This is why the banking sector has grown vastly over the least 40 years, and the stock market has boomed, while wages have remained flat.