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To: Dimples
You guys are funny. Saying prices will rise and the sky is falling! Open your eyes - purchasing power will remain stable. Do you not see this?

I guess you guys took an anti-reform seminar telling you to harp on price increase - but omit the part about corresponding increases (in wages or roi) that force purchasing power to remain stable.

I think you really wonder why some doubt your word. Either you intentionally leave that part out, or you are ignorant of it. I can't say which -

Why don't you ask someone away from this board about it? Someone who you'd trust? Or ask someone on this board you trust!

What you'll get from me and what you've gotten is that purchasing power will remain stable. Your "say it loud and often" is recognized by everyone on FR. FR is not a bunch of idiots. That's du.

If prices rise by x while my spending money increases by an amount sufficient to pay those prices, then purchasing power has remained at least as before.

Why do you omit that part?

283 posted on 05/17/2006 6:28:55 PM PDT by Principled
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To: Principled
So then you DO agree that prices will rise substantially. It's taken seven years to get you guys to admit that.

As for purchasing power, if you happen to be a high wage earner, your take-home will rise MORE than the average (and your purchasing power may INCREASE); if you happen to be a low wage earner, your take-home will rise LESS than average (and your purchasing power may DECREASE); if you happen to live off of something other than wages, you're probably screwed.

In aggregate it should all balance out, but there there will be winners and losers ... something generally hidden by the FairTax crowd.

You see, back in the day when FairTax supporters pretended after-tax prices would remain unchanged, EVERYBODY was a made out to be a winner. In reality even then to maintain prices constant meant take-home wages had to remain stable. ONLY THEN was the purchasing power effect normalized across the population.

The reason the price effect is a big deal is because there is a very different calculus for determining individual purchasing power circumstances depending on whether prices rise or not (with corresponding wage behavior.) The fact that wages and income taxes are non-uniform coupled with with the return of these non-uniform taxes to wage earners alters the distribution of purchasing power. While the aggregate is a net-zero delta, your INDIVIDUAL mileage WILL vary.

I just want people to know that up front.

290 posted on 05/17/2006 7:59:38 PM PDT by Dimples
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