Does anyone think gas is going up or is it that your dollar is just worth less in this Welfare/ Warfare state?
(inflation tax)
2007-11-29 23:10:06 · 3 answers · asked by needliberty 2 in Social Science ➔ Economics
You are confusing dollar depreciation with inflation... While both concerns are valid, they have to be treated separately.
Depreciation of the dollar is not necessarily a bad thing. It will lead to reduced trade deficit and increase in employment in export-oriented and import-competing industries. In 1985-87, the dollar depreciated about 50% against both the yen and the mark, and the U.S. economy continued to hum along nicely.
Inflation tax does in fact exist, but it is much smaller than income tax and way smaller than payroll taxes.
As to welfare and warfare, the U.S. definitely needs less warfare and more welfare. Suffice it to say that the U.S. is the only advanced nation without universal heathcare and has one of the worst primary and secondary educational systems in the industrialized world...
2007-11-30 05:12:01 · answer #1 · answered by NC 7 · 2⤊ 0⤋
Yesterday was publicized a estimation about the growthing of US economy for the third three-month; it was an increase of 4.3% (a lot elevated). This is one of the consequence of the expectations of weakness of USD...
2007-11-29 23:25:30 · answer #2 · answered by CSI - Economics 4 · 1⤊ 0⤋
Mini-dollar maybe?
2007-11-30 00:42:20 · answer #3 · answered by Anonymous · 0⤊ 0⤋