the only market mechanism to force money back into the rest of the system is for interest rates to rise
Or a wealth tax.
Re:Why inflation is not a threat
by imtringued on Sunday March 14, 2021 @02:52PM
(#26457753)
Inflation is basically a wealth tax. Sort of.
One that hurts poor people more than wealthy - since wages are last to inflate. Additionally, wealthy people are still able to afford necessities during times of high inflation.
Re:Why inflation is not a threat
by throwaway316943 on Sunday March 14, 2021 @05:31PM
(#26459464)
Only if the wealth is held as dollars or a depreciating asset. If it’s invested or converted to something of limited supply then it can be inflation proof. Too bad those options are out of reach for the poor.
Re:Why inflation is not a threat
by berryjerry on Monday March 15, 2021 @12:03AM
(#26462520)
We have wealth taxes. They are called property taxes and inheritance taxes.
Unfortunately we've built an economy which requires progressively lower interest rates to sustain. Rebalancing will be expensive ( see the interest rate increase in the run-up to '08 )