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by nah_no_not 866 days ago
Quoting: "The idea that 2% inflation is good for the economy..."

Two goods (A and B) both were aviable for US$100 in 2019.

First A: 2020 inflation added +1.4% so good A cost $101.40 2021 added another +6.8% so good A now aviable for $108.30 2022 adds um ~8% A now costs $117,- 2023 added another ~3.6% buy good A now for $121,- (!!!)

Wow! Some may think, the price is up 20%

Now take good B everyear inflation adds +2

so good B costs also $100,- [Liste:] 2020 = $102,- 2021 = $104,- 2022 = $106.10 2023 = $108.24

"quoting": "Government selling an idea to raise spending -cos inflation is a way to raise taxes without raising taxes."

...or -marketing-(crossed) to sell stability over "Control" ?

now that became political...(wayback)

hint: //wiki/Starve_the_beast

"Starve the beast" is a political strategy employed by American conservatives to limit government spending by cutting taxes. Economist Paul Krugman summarized: "Rather than proposing unpopular spending cuts, Republicans would push through popular tax cuts, with the deliberate intention of worsening the government's fiscal position. Spending cuts could then be sold as a necessity rather than a choice, the only way to eliminate an unsustainable budget deficit.

regards...

1 comments

Without republican votes, we now have an unsustainable budget deficit. What do you suggest?
Get back to Nixon's era tax rates and deficit is gone…