Trillion-Dollar Deficits Are Already Here. Thanks, Republicans!

[Chris]

You are completely clueless. You are only about class envy and punishing the wealthy.

You actually think the inflation rate rises as tax revenues increase.

When tax rate cuts are instituted and the economy grows at a much higher rate, revenues increase dramatically. That does not result in equal increases in the rate of inflation.

Too many people don’t know how an economy works, but what’s worse is that they don’t know that they don’t know.

When tax rate cuts are instituted and the economy grows at a much higher rate, revenues increase dramatically. That does not result in equal increases in the rate of inflation.

Tax cuts should increase demand since people have more wealth to purchase goods and services. Whether that results in inflation or deflation depends on supply to meet demand.

[Tahuyaman]

Tax cuts should increase demand since people have more wealth to purchase goods and services. Whether that results in inflation or deflation depends on supply to meet demand.

Inflation is not a result of cuts in tax rates and a growing economy which results in increased revenues flowing in to government.

When Ronald Reagan took office, the federal government took in about 450 billion dollars through the federal income tax. He was successful in getting his cuts in the tax rates and revenues doubled to just shy of one trillion dollars collected Through the same income tax. The inflation rate did not double. In fact the inflation rate started to decline from previous years.

If spending increases then would have been limited to the inflation rate, we would have completely eliminated the federal deficit and been able to start decreasing the national debt. Instead, the Congress went on a wild eyed soending spree raised spending at a rate much greater than increases in revenues.

[Chris]

Inflation is not a result of cuts in tax rates and a growing economy which results in increased revenues flowing in to government.

When Ronald Reagan took office, the federal government took in about 450 billion dollars through the federal income tax. He was successful in getting his cuts in the tax rates and revenues doubled to just shy of one trillion dollars collected Through the same income tax. The inflation rate did not double. In fact the inflation rate started to decline from previous years.

If spending increases then would have been limited to the inflation rate, we would have completely eliminated the federal deficit and been able to start decreasing the national debt. Instead, the Congress went on a wild eyed soending spree raised spending at a rate much greater than increases in revenues.

Inflation occurs when supply doesn't meet demand and prices rise. Deflation the opposite.

Txes, cuts and increases, can affect that.

[Tahuyaman]

Inflation occurs when supply doesn't meet demand and prices rise. Deflation the opposite.

Txes, cuts and increases, can affect that.

Inflation is more a result of increased debt and government just printing more money to cover that debt.

[Chris]

Inflation is more a result of increased debt and government just printing more money to cover that debt.

Yes, there is that too.


One might say that caused by supply and demand is natural and that caused by debt and fiat money unnatural.

[Tahuyaman]

Government meddling and increased debt causes inflation.