Posts Tagged ‘government spending’

Printing Money = Tax Increase

March 2, 2009

It only occurred to me today that this is true, I mean think about it, when the government prints money it makes both the dollars you earn and the dollars which you already have earned worth less than they were before the government added to the supply of dollars. That is what we call government caused inflation. And so the government printing money is equivalent to a tax increase on all Americans in that it reduces the amount of money they make or have (in terms of reducing value of holdings and earnings) in order to fund government spending. And so if the current administration prints money to fund spending then it would amount to another hidden tax on all Americans just like the Cap and Trade thing seems to be.