Re:Why are American workers becoming harder to find?
by vmception on Monday June 07, 2021 @04:00AM
(#27420170)
Inflation has a mixed effect on the governments too.
Municipal governments are affected the same as you are.
And the federal government which issues the currency is also mostly adversely affected while marginally helping it (and all borrowers) defer paying off its debt. The additional money in its coffers is from its own creation* and doesnt help it purchase more (for long) as it has the same purchasing power and liquidity in the global market.
Its revenue sources, which are mostly tax these days, are distinctive from inflation.
*us treasury issues USD bonds, fed buys USD bonds from everyone including the us treasury creating new USD at the moment of transaction. Sometimes the US treasury is the recipient, other times the other investors are
Municipal governments are affected the same as you are.
And the federal government which issues the currency is also mostly adversely affected while marginally helping it (and all borrowers) defer paying off its debt. The additional money in its coffers is from its own creation* and doesnt help it purchase more (for long) as it has the same purchasing power and liquidity in the global market.
Its revenue sources, which are mostly tax these days, are distinctive from inflation.
*us treasury issues USD bonds, fed buys USD bonds from everyone including the us treasury creating new USD at the moment of transaction. Sometimes the US treasury is the recipient, other times the other investors are