srinath wrote on 12/28/12 at 12:59:03:Inflation is a form of taxation with one very big difference.
Inflation affects those with dollars as in - in cash - far more than the income earners.
Inflation causes you to get adjustments. Remember in the 80's when every year there were 8-12% raises just for cost of living ? that goes to the working man, and not to the rich.
The govt - the present govt may have a spending problem, however that is a result of people getting older, the 2 wars we are fighting agaist 2 countries 1/2 way round the world, and the fact that we have to provide armed guards @ every school, theater, mall and post office.
The revenue problem exists, and the super rich are making that problem get worse and worse by delaying every attempt to correct it.
Need to fix it both. Bring troops home and stop wasteful spending on cops sitting in every school, mall and theater. Gee cant do that without clamping down on guns.
Tax the rich, tax corporate profits and dividends etc appropriately, and close loopholes that allow google to pay .003% in tax but doing a double dutch sandwich.
Cool.
Srinath.
I am glad to see I have at least given food for thought, though I sadly, feel my main point may have gone un-noticed.
It matters not if they raise taxes or lower spending for this current "fiscal cliff" as the entire idea is a "made up" crisis. The REAL tax has been occuring(QE 1 -3)... and is being elevated to higher levels(infinate QE proposed).... but media and the public cannot focus on it due to this fake crisis.
Srinath,
I find it comical that we see the same things, and yet draw such opposite conclusions (no offense intended).
In 1981 I was a senior in High School, and I have a very specific idea on what I personally experienced due to inflation during that time.
Inflation affects those with dollars as in - in cash - far more than the income earnersThis is both true and false... inflation has an immediate affect on cash assets, and the more such assets you have the the more "hit" you take dollar wise. However, since inflation devalues all money, (cause prices to rise) it is the poor that "feel" it the most. The fact that my "million" dollar portfolio lost 10% hurts... but I can stillafford Milk @$5 gal, versue the minimum wage worker with 3 kids who has to now account for that higher cost in her meager budget. By the way, this is not just MY view, but is a long accepted veiw by most on all side of the isle.
Inflation causes you to get adjustments. Remember in the 80's when every year there were 8-12% raises just for cost of living ? that goes to the working man, and not to the rich.In the 1980's this DID occur. But I also KNOW that during that time inflation was well above that range. Intrest rates for example were 24%. My first job paid me $2.45/hr, my second $2.85/hr, then $3.15/hr. Sound good for 1982? Then there was the trip to my cousins funeral, which I drove myself to about 300 miles away. In my 1976 Ford Pinto. The Gas price? $1.46/gal! No my friend, inflation is not good, not for the rich, and certainly not for the working poor. And as for NOW... REAL inflation (using the calculations from the 1980's) is running about 4-7% per year for the last 9 years( only Congress and the media use the new calcualtions of 1 -3%). I have not seen minimum wage hikes to correct for that. COLA yes(retiement), but not min wage.
PS: I am NOT a big fan of large minimum wage hikes, of even of a high minimum wage. What that effectively does is reduce the number of jobs and reduce the type of jobs to those supportable by such wages. But thats another topic. Thanks for responding to my post!
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