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To: cgbg

I am sorry. I don’t get it. The government came out “ahead” of inflation, yes. I don’t think it benefited from it, though. There is nothing to suggest that the increase in tax revenues came from an increase in incomes caused by inflation.

Incomes always lag during inflation. Taxes always lag, unless people are massively overpaying.

At least, that is my understanding.


22 posted on 07/19/2022 6:14:53 AM PDT by Empire_of_Liberty
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To: Empire_of_Liberty

The biggest problem with inflation for .gov happens when the Federal Reserve raises interest rates (given the huge .gov debt to outside parties).

That would be your strongest argument imho.


23 posted on 07/19/2022 6:31:12 AM PDT by cgbg (A kleptocracy--if they can keep it. Think of it as the Cantillon Effect in action.)
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