The Democrats inflation tax
When the Democrats passed President Joe Biden’s $1.9 trillion spending spree in March, a lot of people got a lot of free money — thousands of dollars in many cases. But the bill is already coming due for that free money, and, as many of us warned, it turns out that free money is expensive.
Indeed, it turns out that the very same families most harmed by the lockdowns will be those paying the bill for the lockdown relief. It comes to about $15,000 for an average family, and the first installment is already reflected in the rising inflation sapping the purchasing power of working families.
The sad and sober reality is that government cannot put a single dollar into the economy that it has not first taken out of the same economy. When government spends a dollar for you, it has already decided to take a dollar from you — and it can only be taken in three ways: from your current earnings through higher taxes, from your future earnings through borrowing, and from your savings, retirement income, and purchasing power through inflation. There is no other way to pay for every dollar government spends.
Inflation is the most insidious of these taxes because it silently hollows out everything that a family labors to achieve.
Anyone who has gone near a gas station or a grocery store in the last few months can now see where his or her relief checks came from and how they will be paid back. The Democrats shut down productivity with their lockdowns and then flooded the economy with dollars. More dollars chasing fewer goods is the classic recipe for inflation. And this is just the beginning.
The Consumer Price Index increased to 4.2% in April. It was 2.6% in March. Core inflation is already growing faster than at any time since the end of the Carter administration.
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There is more.
There will be additional inflation taxes on the sale of homes that have appreciated in value as well as other investments. The capital gains tax becomes a tax on inflation.
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