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Comment by lazide | Hacker News Reader

I can’t wait for the retconning to happen with the Modern Monetary Theory folks.

I'm no economist but my understanding is that even though we are printing money like MMT advocates, we are not implementing any of the policy decisions to combat inflation. Namely large tax increases on ultra rich.

Since we've started printing we seen a huge rise in wealth inequality and more billionaires than ever, but we don't fight the inflation with high taxes on them so assets they use (high end real estate, art, crypto, yachts) have blown up as have things they invest the extra money into (middle class housing). We should be getting ride of the extra cash floating around with higher taxes.

I guess we'll find out soon!

I doubt taxing capital gains is going to go well startup wise though. :s

Reminds me of how we do Keynes: we spend countercyclically… and then also spend cyclically so really we just spend.

Is inflation caused by the ultra rich? How much ground chuck does Jeff Bezos buy? Probably not much more than I do.

He certainly buys real estate, stocks, commodities, yachts, and automobiles. Investment bubbles are also part of inflation.

99.999998% of the population has no idea and doesn't care how much yacht prices have inflated over the last several years. They care about toilet paper, food, energy, clothing, and other essentials.

True, but yachts require inputs like steel, wood, fiberglass, electronics, physical labor, trucks, fuel, etc. Those are all products that 99.999998% of people are purchasing either directly or indirectly, so the prices of those products are impacted.

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