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Re:Why inflation is not a threat by lumost on Sunday March 14, 2021 @11:45AM (#26456293)
Ironically the only market mechanism to force money back into the rest of the system is for interest rates to rise. If real interest rates sat at ~7% those with money would attempt to lend it and liquidate unproductive assets, those borrowing to purchase unproductive assets would be forced to sell. Productive, but high cost assets would come down in price (housing) due to lack of demand. For interest rates to rise, there will need to be a lack of liquidity at the current interest rate, many businesses are now dependent on artificially low interest rates and guaranteed liquidity.

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 )

Re:Why inflation is not a threat by coryrc on Sunday March 14, 2021 @01:48PM (#26457184)

    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.
Re:Why inflation is not a threat by jzoch on Sunday March 14, 2021 @05:05PM (#26459176)
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.
Re:Why inflation is not a threat by coryrc on Monday March 15, 2021 @12:24PM (#26467972)
Inheritance tax is easy to avoid and property is a very small proportion of the ultra-rich's assets.