Higher oil prices drive up costs in other areas, but inflation was rising before the price of oil went up, and the steady decline in gas prices we’ve seen for over a month isn’t mirrored by a decline in overall prices in the economy. I agree that the US could drill more oil, I’m just not that gas prices are the primary cause of this inflation.Originally Posted by DogOfDanger
Can you explain what you mean by money bubble? I’m not familiar with that term. Increased tax enforcement will target higher earners because it’s more profitable to recover unpaid taxes from high earners who owe more taxes. Tbh all of this is nothing compared to the amount of money in the economy. I agree with you that the bill is unlikely to reduce inflation in any meaningful way, I was just trying to explain why it’s technically deflationary. It reminds me of weighing yourself after you pee and hoping the scale will go down lol.I've heard this said a couple times, but it doesn't make sense to me. If the reduction in the deficit was achieved through a reduction in government spending then yes, people would have less money - they'd be bogged down in paying for more of their own expenses - and they could spend less on consumer goods... such a bill would be appropriate if there were some kind of money bubble, like if the public had large amounts of excess money and this was driving inflation. The policy would need to be targeted toward the segment of the public that had the excess cash, which... those that live off entitlements aren't exactly rolling in cash.
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