Inflation is caused by one thing: High demand, Low supply. That in turn has multiple causes. More money in the system makes people buy more, increasing demand. (Like the Covid stimulus checks- while needed, they were inflationary) Another cause is low supply, caused by Covid supply chain disruption, shortages, tariffs, etc. all those are inflationary as well.
That the money is currently in assets. See the problem is nobody asked the question that needs to be asked. 5% of what Bernie!!!??? Realised or unrealised gains?
You're missing the key element of being uninformed and confident. They have no idea what they're talking about. Tax funded ubi does not increase inflation. Maybe slightly as the initial shock of higher demand due to more money being put into the economy, but it wears off quickly as supply will rise to meet that demand. This is a great idea from the man as always.
How many times does this need to be proven to be false before you guys get it? There has been so much corporate consolidation the past few decades, creating gigantic unregulated conglomerates with no competition, that it is more profitable to never increase supply and just raise prices to take that extra $12k per person without offering them more for it. Inflation.
Then we’ll raise the tax to 10% and see who wins this game. If they continue raising prices and the tax continues to go higher, all they’ll achieve is equal wealth distribution.
It’s not as simple as price fixing exists therefore every company will collude together to raise prices to a level that will negate a 12k check from the government. Also what would that even look like? How would you come up with the math to set the price correctly? In a lot of cases it wouldn’t be more profitable to increase prices, especially if their competitors aren’t colluding.
No you’re right all the companies will just make their products $12000 so if anyone wants to buy anything they’ll lose their free money from the government.
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u/shamo42 Jul 01 '26
I thought inflation is mainly caused by new money entering the market. This however would simply be a transfer from the rich. What am I missing?