Inflation is caused by excessive currency printing by our Federal Government; and, inflation causes our currency to devalue; which, in return, causes the price for goods and services to rise…
To continue with their current level of spending, our Federal Government basically has two options:
1. Borrow more money from other countries – which increases our national debt; causes the interest on our current debt to compound further; and which needs to be paid back at some point in the future.
2. Raise taxes on the citizens.
Since raising taxes is not very popular, politically, and continuing to borrow money is not very prudent, our Federal Government, instead, creates money out of thin air, to support their desire to spend more money. Therefore, anyone who insists that our Federal Government spend more money, without cutting spending in other areas, should keep in mind, that, all people, of all income levels, at some point, are going to be affected by inflation. And, likely, not too far in the distant future. For anyone who remembers the late 70s, not much else really needs to be said.
While the current income tax rates were recently extended by Congress; and, while it is better, economically, for people and businesses to keep more of their own money – as long as The Federal Government continues to create and spend more money it doesn’t have, eventually, down the road, this will still be tantamount (in the form of inflation) to a consumption-based, or national sales tax. For these reasons, and several others, it is said that inflation is the most insidious tax of all. read more…

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