21 June 2010

Isn’t printing money just another form of taxation?

Posted by admin under: Politics .



An inflation tax is an analogous pejorative for the economic disadvantage suffered by holders of cash and cash equivalents in one denomination of currency due to the effects of inflation, which acts as a hidden tax that subtracts value from those assets. Inflation tax is not a rigorous economic concept.

http://en.wikipedia.org/wiki/Inflation_tax

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2 Comments so far...

Confused ... Says:

25 June 2010 at 5:42 am.

You are right on this.
As the Fed Money Printing shop runs out paper and ink supply, that will be the end of this great nation.

miniflur Says:

25 June 2010 at 7:33 pm.

Wow I’ve never thought of it that way, but it’s true. The more money they print, the less the money I have is actually worth.

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