Inflation transfers wealth from the people to the government and we the people feed the government just because we work and eat.
Average Americans pay the government 10% per hour in federal income tax. When inflation increases, their purchasing power decreases, but their federal income tax increases between 12% to 15%.
An employee whose wage is $30 per hour pays between $3 to $5 on average per hour to the government. This means that the more Americans work, the more the government gets. As inflation grows, the less Americans save.
Experts say that inflation does not occur because businesses increase their prices but because the federal government spends, borrows, and creates too much money.
Therefore, inflation transfers wealth from the people to the government and we the people feed the government just because we work and eat.
Bobb Rousseau, PhD
Apostrophe Podcast
An employee whose wage is $30 per hour pays between $3 to $5 on average per hour to the government. This means that the more Americans work, the more the government gets. As inflation grows, the less Americans save.
Experts say that inflation does not occur because businesses increase their prices but because the federal government spends, borrows, and creates too much money.
Therefore, inflation transfers wealth from the people to the government and we the people feed the government just because we work and eat.
Bobb Rousseau, PhD
Apostrophe Podcast