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Poland's economic experiment based on Thomas Piketty

bloomberg.com

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Re: Poland's economic experiment based on Thomas Piketty

#31

Post by laurencerowe »

ucaetano wrote: post #28
conanbatt wrote: post #24

Earlier quoted context omitted.

Domestic borrowing is a guarantee of inflation, because the incentive to dilute the debt is too great to not use.

Exactly! And inflation is just another form of taxes.

Inflation is a tax on wealth but not income (which rises with inflation.) As such it’s a progressive tax since wealth is so unequally distributed. Close to two decades of low inflation in the US and Western Europe has greatly increased inequality. Hyperinflation is destructive and must be avoided but there’s a strong progressive case for increasing the 2% inflation targeted by most central banks.

Re: Poland's economic experiment based on Thomas Piketty

#32

Post by giggles_giggles »

laurencerowe wrote: post #31
ucaetano wrote: post #28

Earlier quoted context omitted.

Exactly! And inflation is just another form of taxes.

Inflation is a tax on wealth but not income (which rises with inflation.) As such it’s a progressive tax since wealth is so unequally distributed. Close to two decades of low inflation in the US and Western Europe has greatly increased inequality. Hyperinflation is destructive and must be avoided but there’s a strong progressive case for increasing the 2% inflation targeted by most central banks.

5% of the value held in the bank account of a poor person is worth more to that person than 5% in the account of a wealthy person, even if the absolute amount is less. Inflation is one of the most regressive taxes.

Re: Poland's economic experiment based on Thomas Piketty

#33

Post by conanbatt »

laurencerowe wrote: post #31
ucaetano wrote: post #28

Earlier quoted context omitted.

Exactly! And inflation is just another form of taxes.

Inflation is a tax on wealth but not income (which rises with inflation.) As such it’s a progressive tax since wealth is so unequally distributed. Close to two decades of low inflation in the US and Western Europe has greatly increased inequality. Hyperinflation is destructive and must be avoided but there’s a strong progressive case for increasing the 2% inflation targeted by most central banks.

Grotesque. Inflation is a tax that is first spent by the government, from the government to governments interests. Its a terrible tool of wealth distribution, and to the extent that it behaves like one it redistributes from everyone into the pockets of those who get the money first.

Re: Poland's economic experiment based on Thomas Piketty

#34

Post by lainga »

laurencerowe wrote: post #31
ucaetano wrote: post #28

Earlier quoted context omitted.

Exactly! And inflation is just another form of taxes.

Inflation is a tax on wealth but not income (which rises with inflation.) As such it’s a progressive tax since wealth is so unequally distributed. Close to two decades of low inflation in the US and Western Europe has greatly increased inequality. Hyperinflation is destructive and must be avoided but there’s a strong progressive case for increasing the 2% inflation targeted by most central banks.

>income (which rises with inflation)

At least up here in Canada, inflation-adjusted wage growth has been negative in the past two years.

Re: Poland's economic experiment based on Thomas Piketty

#35

Post by conanbatt »

skybrian wrote: post #29
conanbatt wrote: post #24

Earlier quoted context omitted.

Domestic borrowing is a guarantee of inflation, because the incentive to dilute the debt is too great to not use.

On the other hand, borrowing in a foreign currency risks being ruined by exchange rates if the currency collapses. As happened to businesses in many Asian countries not that long ago. Also: Iceland.

Only if you peg your own currency. If your neighbor devaluates their currency, your will naturally devaluate yours.

Re: Poland's economic experiment based on Thomas Piketty

#36

Post by dang »

mrybczyn wrote: post #5

Article written by Russian banker living in Germany. Can't possibly be biased.

Could you please read https://news.ycombinator.com/newsguidelines.html and follow those rules when posting here? They include: "Please don't post shallow dismissals, especially of other people's work." Doing that dumbs this place down, and we're hoping for better.

Re: Poland's economic experiment based on Thomas Piketty

#37

Post by lainga »

baq wrote: post #25
ergo14 wrote: post #10

Earlier quoted context omitted.

And conservatism. It is hard to categorize them easly, but they don't seem to be center of political scene in my opinon.

They're national socialists. They don't like aliens, want to be in control of everything they deem important and are perfectly willing to break the rule of law for the good of society. They gave everyone with more than one child free money. They also call everything 'national' instead of 'public'. They think that the EU is a hindrance and an enemy, as if Putin didn't exist (that the part I can't understand the most.)

Why bring up Putin? It is possible to be in NATO but not the EU.

Re: Poland's economic experiment based on Thomas Piketty

#39

Post by prostoalex »

laurencerowe wrote: post #31
ucaetano wrote: post #28

Earlier quoted context omitted.

Exactly! And inflation is just another form of taxes.

Inflation is a tax on wealth but not income (which rises with inflation.) As such it’s a progressive tax since wealth is so unequally distributed. Close to two decades of low inflation in the US and Western Europe has greatly increased inequality. Hyperinflation is destructive and must be avoided but there’s a strong progressive case for increasing the 2% inflation targeted by most central banks.

> Inflation is a tax on wealth

Part of wealth that's stored in cash or fixed-rate debt instruments. Most other assets - real estate, equities, floating-rate debt instruments - adjust accordingly.

Re: Poland's economic experiment based on Thomas Piketty

#40

Post by tzahola »

laurencerowe wrote: post #31
ucaetano wrote: post #28

Earlier quoted context omitted.

Exactly! And inflation is just another form of taxes.

Inflation is a tax on wealth but not income (which rises with inflation.) As such it’s a progressive tax since wealth is so unequally distributed. Close to two decades of low inflation in the US and Western Europe has greatly increased inequality. Hyperinflation is destructive and must be avoided but there’s a strong progressive case for increasing the 2% inflation targeted by most central banks.

Lol.

Inflation is taxation only for those who can’t afford to invest their “wealth” in assets like real estate. How progressive!

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