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Inflation happens

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hellicopter

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Nov 23, 2009, 10:09:13 AM11/23/09
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Your supplier ups his price because his lawyer
charges more because he's the only lawyer in town.

Inflating your own costs. Which you pass on.

Inflation happens.

Inflation targets 0% are unrealistic, in fact they
provide the lowlife greed at any expense capitalist
an opportunity.

Since if you can never contain inflation at 0% then
isn't it obvious it doesn't matter what tools you
use! And if that tool is a tax cut for the richest
so be it, it will have no effect on underlying
inflation except to cover it up by structurally
changing the tax system temporarily.

Tax cuts for the richest do that, your not getting
low inflation, all you are getting is the richest
who get to keep more of the profit shifting the
cost onto their customers (the inflation price
rises by a redistribution through the tax cuts!).

Follow the money! If you buy something for $100
and tomorrow the price inflates to $101 dollars
then you 'see' the inflation of 1%. But now if
the rich get a tax cut and don't pass on the
1% inflation because they keep more of the money
then where did the inflation go? Simple, the
government legislated the rich a once off tax cut
that lowered amount the rich pay, and increased
the amount the lower and middle incomes pay!

So you still pay more, you just pay it as a higher
proportion of the tax take (or if the legislator
has been successful lower service delivery of government).

But it doesn't work forever, the rich get to like tax cuts
and when the next round of inflation hits them they want
to pass on the inflation to their customers. So they will!

Eventually you hit a crisis, where children don't get
health cover, live in poverty, and will be a greater
burden on a society, where customers who are also
parents don't have the money to survive, customers
who are also employees who are wage slaves. Increases
in crime, in all the related and costly consequences
start turning up on societies cost sheet.

So tax cuts for the rich only delay the costs of inflation,
AND! multiply the cost of the inflation.

Welcome to the global collapse after thirty years
of shifting the inflation our of sight! All that toxic
inflation, structurally crushing the economies who
were sold the bum idea that 0% inflation was possible.

Its not. Inflation happens. Deal with it upfront, or
deal with it far worse later on in disease, crime,
social dislocation, corrupt economies.


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