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Why Kamala Harris Will Not Bring Prices Down. Her Plan Needs Inflation | dlacalle.com (www.dlacalle.com)

submitted 1 week ago* (last edited 1 week ago) by [email protected] to c/[email protected]

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[-] [email protected] 12 points 1 week ago

The reality is that the Kamala Harris plan, like all interventionist governments, creates and strives for inflation. Inflation is a hidden tax. Governments love it and perpetuate it by printing money through deficit spending and imposing regulations that harm trade, competition, and technological creative destruction. Big government is big inflation.

How do you increase National Security Spending, Cut Taxes, and still never miss a payment to all your Social Security voters without creating inflation, Mr. LaCalle?

The dirty secret about inflation hawkery is that we have a cure. Taxation takes money out of the economy and increases the value of remaining dollars. If you really, truly, honestly, sincerely care about inflation, then your only remedy is to raise taxes. Only one candidate running is serious about raising taxes and taking those excess dollars off the table. Only one candidate is coming anywhere close to a balanced budget in 2025.

And it ain't Trump.

Former President Donald Trump’s economic proposals would increase federal deficits by $5.8 trillion over the next decade, almost five times more than those of Vice President Kamala Harris, which would add $1.2 trillion, according to a new pair of studies from the nonpartisan Penn Wharton Budget Model.

[-] [email protected] 8 points 1 week ago

Math isn't welcome in these parts, you have to trust your guts.

[+] [email protected] -7 points 1 week ago

@UnderpantsWeevil @Amoxtli

Taxation takes money out of the economy, runs it through government, and restores a smaller amount to the least productive parts of the economy. It devalues your currency and so prices always go up and quality goes down.

[-] [email protected] 4 points 1 week ago

restores a smaller amount to the least productive parts of the economy

Taxation does not restore money to the economy in any capacity or at any productivity level. It is purely fiscally destructive.

It devalues your currency

It increases the value of outstanding currency by reducing the total volume in circulation.

This is Econ 101, Supply & Demand level stuff. Decreasing supply of dollars means reducing the demand for goods and services. If you're selling widgets for $5/unit and the median spender losses $1 of their available $5 to taxation, this will not cause you to increase the sales price of your widgets. Raising your prices means you sell no widgets and you go out of business. Lowering your price means you capture the available cash flow and clear your inventory.

[+] [email protected] -6 points 1 week ago

@UnderpantsWeevil

No, because the tax money is spent back into the economy. It is just taken from productive sectors and given to unproductive ones.

[-] [email protected] 5 points 1 week ago

tax money is spent

Spending is entirely divorced from revenue. That's how we run deficits.

We've played the "cut taxes first, cut spending later" game since Carter, and I dare you to show me three consecutive years where the deficit actually contracted.

is just taken from productive sectors

Sectors that run high margins are defacto not productive. They are assigning large mark ups over the real cost of production.

If you want to reduce inflation without hitting productivity, you need to extract taxes from these high margin businesses.

Once shrinking your margin becomes a tax avoidance strategy, wages rise and prices fall.

Targeted high margin taxation is a proven strategy for deflating prices. But this requires a level of education that goes beyond Econ 101.

[-] [email protected] -5 points 1 week ago

@UnderpantsWeevil

If your government is in debt, then it spent any money it took in in taxes minus the overhead.

[-] [email protected] 2 points 1 week ago

Once you complete Econ 101, you might want to explore the idea of credit and debt in a subsequent class.

[-] [email protected] -5 points 1 week ago

@UnderpantsWeevil

Keep guessing about my CV.

[+] [email protected] -13 points 1 week ago* (last edited 1 week ago)

There is no point in defending Kamala. I can tell by the stupid stuff she says she never ran a business in her entire life. Kamala is not fit for command. Felon Trump is better than Kamala. He is a businessman. Kamala has no business in the business of business. Vote Trump if you knew what is best for you. All democrats have is Trump is a felon. The disaster that Joe Biden is, and Kamala's unoriginal ideas of meddling in people's lives with unnecessary federal laws, which the states can, do, and already did with left wing policies, Kamala is unnecessary. I don't think she ever worked at McDonald's either, like she claimed she did. Then she steals some of Trump's ideas. America does not need Kamala. Vote Trump, because we have no choice. Taxation reduces economic output. There is monumental evidence that tax cuts work and are often employed to stir up investment. Even blue states, and blue cities, use tax cuts. Democrat economy theory of taxation increasing economic prosperity is voodoo economics. Look at Joe Biden economic policies in trying to engineer the economy with tax credits for his futile micromanaged boondoggles. Even Joe Biden uses tax breaks. You are pissing against hurricane force winds and getting your face wet with your Democrat economic theories that are meant to confuse the low level electorate into voting for them, including the hope they get their union perks, 50 dollar minimum wage, and abortions, whatever they can get. What we need to do is stack the court with libertarians and right-wingers, and make sure democrats don't interfere with state laws and the culture of those states ever again. Save America, vote Trump. There is nobody else.

[-] [email protected] 8 points 1 week ago

[email protected]

[-] [email protected] 7 points 1 week ago

I can tell by the stupid stuff she says she never ran a business in her entire life.

Does it count as running a business if you never turn a profit?

[-] [email protected] -4 points 1 week ago

Her dad was a Marxist economist. We know about well that works as we look at the great success of Cuba, Venezuela, the Soviet Union and eastern block

[-] [email protected] -5 points 1 week ago

@wintermute_oregon @Amoxtli

Even socialism lite (Keynesianism, Bismarckism) has bankrupted the US, UK, and EU.

[-] [email protected] -1 points 1 week ago* (last edited 1 week ago)

Bringing prices down means deflation and that is terrible for the economy. It means the real value of debt increases which disincentivises investment. It also risks a deflationary spiral which is a situation where decreases in the price level lead to lower production, which in turn leads to lower wages and demand, which leads to further decreases in the price level.

this post was submitted on 03 Sep 2024

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