"inflation" is an iron curtain.

[Guest61835]

I've never thought about this till now. I'm sure there are many reasons towards why inflation is going on in the United States but I'm pretty sure this is the main reason.

T-A-X-E-S.

Small and even moderate sized businesses already get ripped off by taxes from our government but now people think they deserve more money with minimum wage being lifted to 15 dollars an hour?

This negatively skews the perspective of what truly is valuable in skills now or makes more valuable people cost too much in a job.

Example: Bob makes 15 an hour flipping burgers with no high school or college degree. And then there'sgood ol' Mr. tech support tier 2 guy who makes 17 an hour full time with a college degree and high school degree, and technical background of almost 2 years.

Which one do you think will have a harder time finding a job in all honesty?

This isn't inflation just because prices will go up. The only reason things are increasing in price is mostly because of taxes from my viewpoint.

If you sell something for $3.50 ,the government gets $1.05 because of 30% quarterly taxes. Therefore you're not getting your product sale of $3.50 but only $2.45 from the sale in gross sales. So to actually get the amount you desire in a sale, you have to sell your product for 4.5 dollars. After quarterly taxes, this amount is now $3.15 which is the gross sale for the target amount you desire. You get the money you want but it costs more for the consumer. We need to lower taxes. Taxes are the reason for "inflation".

We value entertainment more than we do food now. You can see why many things which are actually valuable are increasing in price. This is why in my opinion.

Either the valuable will become more valuable or will become too expensive to hire.

 

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[LittleWolfie]

I thought taxes increased the velocity of money and therby decreased inflation.

 

[Guest61835]

I thought taxes increased the velocity of money and therby decreased inflation.

I guess it depends on the country that you reside in but from my understanding and observation, yes businesses have to charge more money for their products/services to reach their target gross sales amount.

I'm not an accountant guru but that's what I have seen. Costs more for the customer but doesn't affect the amount made for the business. It could affect the business in terms of their employees getting paid only 15 an hour as a base pay even if they are super valuable. More taxes are not good for the poor nor the rich. Eventually people will expect the rich and the middle class to take care of them and pay for their needs instead of working for it regardless of the reasoning why they need help.

 

[Tourmaline]

There's inflation because we print money. Taxes can be used to control inflation if the money is actually taken out of the economy, but that's not what happens. The taxes just get spent and thus it's a wash.

Also doesn't help that the government's budget has a deficit. That's not different than printing money either.

You can actually control inflation very well if you use taxes to manipulate the money supply. We don't do this however. And I don't see why the banks will start bothering to anytime soon.

Here:

View: https://www.youtube.com/watch?v=28V7AI5x8jQ


Now go be angry and make some money

 

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[Guest61835]

My big problem with more taxes and rasing the minimum wage is that if we keep encouraging involvement with government in Businesses, eventually the government won't allow you to have a business unless they says so period and take the majority of your money made from your sales like commission.

That will happen if we don't get off the road that USA is heading down.
Just think this is all rediculous with people wanting 15 an hour. Talk about people getting fired to save money and value skewing Americans on what's valuable and what isn't.

 

[Tourmaline]

I'm not too worried. Those that want higher taxes and $15/hr are simply the loudest on the left, I don't think they're actually the majority.

I do not foresee ever getting to the point where doing business in the USA is difficult. At least not while I'm alive!

 

[LittleWolfie]

Taxes can be used to control inflation if the money is actually taken out of the economy, but that's not what happens. The taxes just get spent and thus it's a wash.

You can actually control inflation very well if you use taxes to manipulate the money supply. We don't do this however

That is exactly how the economic miracle of Wörgl worked though during the great depression though, right?

Just to clarify are you talking about monetary inflation or goods inflation?

 

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[Walter Hay]

Continuous growth is a concept that is almost like a religion to most orthodox economists. They think that a growing GDP is absolutely essential for world prosperity and that of individual countries.

Unfortunately, because of the huge gap between those towards the lower end of the socio-economic scale, this works far better for those at the top end.

Population growth is a major driver of increasing GDP, because all the new mouths to feed and services to provide for them require expenditure by government and corporations as well as individual goods or services providers.

For this reason governments in some countries have been encouraging migration to their country primarily to boost growth. My personal view is that the worldwide growth economy is ultimately unsustainable.

In 1972 a book “Limits to Growth” commissioned by the Club of Rome painted a dismal picture for the world’s future. In 2012 One of the original authors, Jorgen Randers, painted a more hopeful picture in his book “2052: A Global Forecast for the Next Forty Years”.

In my opinion he was looking through rose colored glasses. The following main features of his optimistic outlook (Wikipedia) suggest to me that he is an incurable optimist who doesn’t understand human nature:
“Concretely, in order to create a better world for our grandchildren, we should:

• Have fewer children, especially in the rich world.
• Reduce the ecological footprint, first by slowing the use of coal, oil and gas in the rich world.
• Construct a low-carbon energy system in the poor world, paid for by the rich.
• Create institutions that counter national short-termism.

But most importantly, the coming crisis should be used to develop new goals for modern society. To remind us all that the purpose of society is to increase a total life satisfaction, not (only) to have each person contribute to the gross domestic product.”

Walter
P.S. In 1972 the King of Bhutan received a lot of coverage when he declared, “Gross National Happiness is more important than Gross Domestic Product.”

 

[StrikingViper69]

This guy has an interesting view on inflation:

View: https://www.youtube.com/watch?v=g2KlPNsbdDM

 

[LittleWolfie]

This guy has an interesting view on inflation:

View: https://www.youtube.com/watch?v=g2KlPNsbdDM

He is an Austrian economist rather than a kenysian economist

As I understand it they have very different views on inflation, gov spending, taxation etc.

 

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[BellaPippin]

Prices go up as a result of inflation, which is all the $$$ flooding the market thus devaluing the currency because there's too much of it around.

Prices also go up as the vendor passes taxes on to the final consumer, but that is something different from inflation as far I know.

Or so I read in Econ 101 which is the only thing I took, don't yell at me (?)

 

[Tourmaline]

@Walter Hay I don't imagine things will ever change that much in terms of haves and have nots.

What will continue to get better is quality of life, which will benefit everyone vastly.

Economic output does tend to correlate with a country's quality of life too, even if those at the top have a much much greater benefit from GDP than the rest.

 

[DustinH]

Prices also go up as the vendor passes taxes on to the final consumer, but that is something different from inflation as far I know.

There are so many "hidden costs" in the form of taxes within the supply chain that the consumer has no clue about. If consumers knew how much more they have to pay for goods, such as groceries or alcohol because of the taxes along the way to the store shelf, they would riot in D.C. Because they know that most of the money isn't going to anything beneficial.

 

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