How to Jumpstart the Economy - Tax Free Small Businesses

Re:How to Jumpstart the Economy - Tax Free Small Businesses by lupin_sansei on Tuesday July 29, 2008 @09:11PM (#261328)

> What I'm arguing is that such a loophole will only create inflation by directing the indirect tax cuts to spending.

Inflation would be caused here as the total amount of money in the country is the same. It's just that the people are spending more money and the government less money. You only get inflation when the total volume of money increases.

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Re:How to Jumpstart the Economy - Tax Free Small Businesses by moocha on Wednesday July 30, 2008 @11:36PM (#262630)

You can also create inflation by any number of different means. One very good way is to encourage consumer spending (not investment!) when most of what consumers are buying is manufactured in other countries then imported.

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Re:How to Jumpstart the Economy - Tax Free Small Businesses by lupin_sansei on Thursday July 31, 2008 @11:01AM (#263026)

Spending can't cause inflation as there's no increase in the money supply, and so prices can't uniformly rise as there's not the actual physical cash to pay all those higher prices.

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Re:How to Jumpstart the Economy - Tax Free Small Businesses by moocha on Friday August 01, 2008 @05:01AM (#263878)

Sure it can. both trade deficit and expectations of inflation play very important roles.

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