Printing more money and using it for public works or giving it directly to the poor could be a valid form of wealth redistribution that doesn’t require collecting taxes. The problem of course is capital, it’s immune to this kind of inflation, though rich people who have their wealth in debt would be hurt.
Printing more money and using it for public works or giving it directly to the poor could be a valid form of wealth redistribution that doesn’t require collecting taxes. The problem of course is capital, it’s immune to this kind of inflation, though rich people who have their wealth in debt would be hurt.
Aren’t the big loans interest rates tied to inflation though?
Directly. Yes.
They are, but the rate you’re offered in the first place includes the loss to inflation. Capitalists aren’t going to offer a losing deal.
I don’t understand. What part of capital is exactly the problem?
My point was that the wealthiest people have most of their wealth in assets that are protected from inflation.
ahh right, maybe we should start trading in gold bars again