what if Trump wins?, page-109

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raiderup

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19/07/24

08:18

Post #: 74821968
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Originally posted by Fishinnick: ↑

Tax cuts don't increase inflation, all that happens is the people that actually earn the money spend it in the economy instead of the government, it's not an increase in money supply, just different people spending it within the economy and if you want to get technical a reduction in government revenues should reduce it's borrowing power in theory and also it's expenditure and this would help reduce inflation on a net basis from the tax cuts and Trump cutting regulations when he comes back to the whitehouse and likely reducing government staff numbers should also reduce governmental expenditure and thus reduce pressure on inflation further still.

It's always best our governments help reduce the inflationary impacts caused by the current record government spendings and size where they can because that would ease some pressure on the RBA to increase rates and also help ease the pressure on people suffering with their mortgages, leaving the RBA to do all the heavy lifting only prolongs the higher inflation we still have.

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"Tax cuts don't increase inflation"
If you incentivise big business via tax cuts, they increase margins, over an above, input costs, and ipso facto increase inflation.

Raider
" I have no spur / To prick the sides of my intent, but only / Vaulting ambition, which o'erleaps itself / And falls on th' other."
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