parochial boy
parochial_boy
Junior Chimp
Posts: 5,144
Political Matrix
E: -8.38, S: -6.78
|
 |
« on: July 30, 2022, 05:46:03 PM » |
|
Great plan. An under discussed point is the degree to which households, and especially higher income ones, were able to save during the pandemic. And the degree to which having the ability to spend these savings at the time of still restricted supply has contributed to the overheated demand driving inflation.
In that respect, if you want to use fiscal policy to address inflation it makes perfect sense to tax higher income households more heavily in order to reduce their demand. As them having less money will be far less painful than the impact of other policies like reducing public spending or welfare cuts that would otherwise hurt the already struggling people on lower incomes or the sorts of public investments that are needed for long term economic health.
|
