Find fields & stores near you!
Find fields and stores
Zipcode
PbNation News
PbNation News
Community Focus
Community Focus

Reply
 
Thread Tools
Old 10-01-2012, 10:11 AM #43
StellarKnight
Mind Erasure
 
StellarKnight's Avatar
 
Join Date: May 2001
Location: Lost...In a Lost World
StellarKnight is a Supporting Member
StellarKnight is a founding member
 has been a member for 10 years
StellarKnight has achieved Level 1 in PbNation Pursuit
Black's Law Dictionary defines tax as " a monetary charge imposed by the government on persons, entites, transactions or property to yield public revenues."

Inflation is a wealth transfer, but not necessarily to a government entity. The end result to the consumer may be the same in certain instances, but I wouldn't characterize inflation as a tax.
__________________
Evil presupposes a moral decision, intention, and some forethought. A moron doesn't stop to think or reason. He acts on instinct, like a stable animal, convinced he's doing good, that he's always right, and sanctimoniously proud to go around ****ing up . . .What the world needs is more thoroughly evil people and fewer idiot ****heads.

Last edited by StellarKnight : 10-01-2012 at 10:22 AM.
StellarKnight is online now   Reply With Quote
Old Sponsored Links Remove Advertisement
Advertisement
Old 10-01-2012, 11:21 AM #44
yesme
 
 
Join Date: Oct 2008
If the annual inflation rate in the United States is 5%, one dollar will buy $1 worth of goods and services this year, but it would require $1.05 to buy the same goods or services the next year; this has the same effect as a 5% annual tax on cash holdings, ceteris paribus.
yesme is offline   Reply With Quote
Old 10-01-2012, 11:28 AM #45
StellarKnight
Mind Erasure
 
StellarKnight's Avatar
 
Join Date: May 2001
Location: Lost...In a Lost World
StellarKnight is a Supporting Member
StellarKnight is a founding member
 has been a member for 10 years
StellarKnight has achieved Level 1 in PbNation Pursuit
Quote:
Originally Posted by yesme View Post
If the annual inflation rate in the United States is 5%, one dollar will buy $1 worth of goods and services this year, but it would require $1.05 to buy the same goods or services the next year; this has the same effect as a 5% annual tax on cash holdings, ceteris paribus.
Yes I know how to not only click links, but read them as well. What I'm saying is that the word "tax" has a specific connotation; it's not simply a synonym for "price increase." An annual inflation rate of 5% may have the same net effect on the consumer as a 5% sales tax on every dollar spent, but that doesn't render the effect on the consumer a tax. The definition of a tax doesn't seem to hinge on monetary implications to the taxpayer.
__________________
Evil presupposes a moral decision, intention, and some forethought. A moron doesn't stop to think or reason. He acts on instinct, like a stable animal, convinced he's doing good, that he's always right, and sanctimoniously proud to go around ****ing up . . .What the world needs is more thoroughly evil people and fewer idiot ****heads.

Last edited by StellarKnight : 10-01-2012 at 11:33 AM.
StellarKnight is online now   Reply With Quote
Old 10-01-2012, 02:29 PM #46
licence2kill
POOP
 
licence2kill's Avatar
 
Join Date: Jun 2009
Location: Orange County
savers don't care about inflation, they care about deviations away from trend NGDP growth.
licence2kill is offline   Reply With Quote
Old 10-01-2012, 04:40 PM #47
yesme
 
 
Join Date: Oct 2008
WTF? savers don't care about inflation? Are you high?
yesme is offline   Reply With Quote
Old 10-01-2012, 04:55 PM #48
licence2kill
POOP
 
licence2kill's Avatar
 
Join Date: Jun 2009
Location: Orange County
Scott Sumner:

Quote:
This also applies to the phony tears people shed for the savers hurt by inflation. Let’s assume savers buy long term nominal bonds. Those bonds promise a fixed amount of money, at specified futures dates. The standard argument is that inflation hurts savers by reducing their real return on bonds. But savers don’t care about the nominal interest rate minus the inflation rate, they care about the nominal interest rate minus the per capita NGDP growth rate. I’ll give you an example. Years ago the British government indexed the initial starting point for retirement pensions to the cost of living, not average wages (as we do.) The Thatcher reforms led to real increases in living standards iGn reat Britain, and so over time the living standards of retirees fell further and further behind living standards of the employed (who received nominal wages increases that exceeded inflation.) Eventually the old-timers looked at the flashy lifestyles of their younger neighbors, and revolted. The UK government was forced to change the indexing scheme. People don’t care about real incomes they care about how they’re doing relative to their neighbors. If NGDP rises faster than expected, then a bondholder is paid back a smaller share of national income than he anticipated when he bought the bond. And that hurts.
licence2kill is offline   Reply With Quote
Old 10-01-2012, 05:08 PM #49
barrel roll
secedere
 
barrel roll's Avatar
 
Join Date: Oct 2007
Location: FL/GA border
barrel roll is one of the top 500 posters on PbNation
barrel roll is Legendary
Quote:
Originally Posted by licence2kill View Post
Scott Sumner:
Tldr: people are stupid?
__________________
--- UNDRPRVLGD Goggle Straps n stuff ---
If this be treason, make the most of it.-Patrick Henry
I'm a damn veteran, I've got more rights and privileges than you do.
MQ2 rebuild kits, MP4 ram rebuilds, general 'cocker teching
Will soon be making super slick mid/half block bolts
barrel roll is offline   Reply With Quote
Old 10-01-2012, 08:58 PM #50
licence2kill
POOP
 
licence2kill's Avatar
 
Join Date: Jun 2009
Location: Orange County
yes, money illusion is extremely powerful.
licence2kill is offline   Reply With Quote
Old 10-02-2012, 08:26 AM #51
yesme
 
 
Join Date: Oct 2008
for one thing, he only addressed bonds and in the end said the exact same thing. when people have less then they expect they get pissed. living and interacting with the largest retirement community in the us, aka the villages. i can assure you that they do care about inflation.
yesme is offline   Reply With Quote
Old 10-02-2012, 11:51 AM #52
licence2kill
POOP
 
licence2kill's Avatar
 
Join Date: Jun 2009
Location: Orange County
s=i
licence2kill is offline   Reply With Quote
Reply


Thread Tools

Posting Rules
Forum Jump