Re:The War on Cash
by cmsmith on Wednesday February 17, 2016 @03:25PM
(#11121008)
Unless the inflation is caused by the government printing money.
If 10 citizens each have $10, then there are $100 in the money supply. Now the government prints $10. If no actual value was created with that $10, then the value of the dollar has to drop. Now all the citizens have $9.1 (real value) and the government has $9.1 (real value). This is the same as a 10% tax on wealth.
If 10 citizens each have $10, then there are $100 in the money supply. Now the government prints $10. If no actual value was created with that $10, then the value of the dollar has to drop. Now all the citizens have $9.1 (real value) and the government has $9.1 (real value). This is the same as a 10% tax on wealth.