It doesn’t really matter. It’s more money chasing the exact same number of resources as existed before hand. The very definition of inflation.
It’s just bread and circuses.
It’s just bread and circuses.
No matter how much you take away from those 0.01% of people, it’s not going to do much to fight the inflation of the goods that people are worried about the inflation of.
Let’s take food for example. Perhaps the 0.01% might consume 10x more food than regular people at most (factoring in waste). Even if the 0.01% were to be taxed to the point where they can eat nothing, it’s not going to create very much more supply of food for everyone else.
Then there is fuel. The ultra rich probably do consume a lot more of it when you factor in things like jet flights and such. But even if it’s 100x more, it’s not really freeing up so much to actually affect the market for it.
Now what taxing those guys might do is reduce the price of the goods that they do in fact consume more of. Things like housing where the rich will own a lot in order to generate revenue.
And indeed these productive assets were inflated significantly due to the loose monetary policy regime that we have been living in for some time.
But these are not the resources that most are concerned about with regard to cost of living at the moment. That’s food, fuel, etc.
Because of supply chain issues, it's more money chasing fewer resources. I think people focus too much on the money supply and not enough on supply chain shortages. IMO, the bump in stimulus money given would not have caused this level of inflation without also the decline in supply to go along with it.
$1,200 per adult in April 2020, $500 per child.
$600 per adult in December 2020/January 2021, same per child
$1,400 per adult in March 2021, same per child.
A fully qualified two adult, two child household received $11,400. For a median income of 2x $31k, that’s 9% of the household’s per annum income. If you both had a job during covid, as most people did, it’s pure inflation.
Inflation is measured via a basket of goods measure, and corporations have freely taken all those basics and gone "welp must be circumstance" while posting those profits.
Prices surged before any stimulus was handed out.