Inflation is Not a Tax

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Money is a numeraire

Will somebody please explain to Conservatives and the other Democrats that only taxation is taxation? The nonsense of claiming inflation as taxation crept in during the Carter era and has been propagated ever since. I am sick of sounding like a broken record debunking it.

1. Money is a mere numeraire. It has no value in and of itself.

2. Consequently, you can never expect the money you hold to have any value. It is purely a medium of exchange, NOT a store of value.

3. If you want a store of value, BUY AN ASSET!!!

4. Don’t expect old currency-denominated contracts to retain value.

5. If your wages do not keep up with inflation, feel free to renegotiate them with your employer or seek another contract. Don’t make stupid remarks about being “taxed” by inflation. They are simply not true!

6. If your labor contracts are not flexible enough to handle inflation, or if you are not at liberty to renegotiate their terms, then address the flaws directly or rail at public officials who have relegated you to serfdom. DO NOT EXPECT ANY OF US TO RESPECT YOUR OPINIONS WHEN YOU SPEAK ECONOMIC NONSENSE!!!


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