• StaySquared@lemmy.ml
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      3 months ago

      Technically, inflation is just another form of taxation.

      Milton Friedman, an economist from the Chicago School of Monetarism, coined the phrase “inflation is taxation without legislation” to explain how inflation and rising prices can reduce the value of money and purchasing power, similar to higher taxes. Friedman believed that inflation could be managed by keeping the volume of moving liquidity in line with the amount of products in circulation. Inflation is when the price of goods and services increases across the economy, which can reduce the value of assets and a currency’s purchasing power. This can make taxpayers less well-off due to higher costs and “bracket creep”, while also increasing the government’s spending power. Some say that inflation is a “hidden tax” that can be especially harmful to people who have the least ability to pay. Inflation and money creation are closely linked, and the government can create money through taxing, borrowing, or printing it. Printing money to finance a deficit is sometimes called an “inflation tax”.

    • ryannathans@aussie.zone
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      3 months ago

      Inflation is market derived and does not include devaluation of the currency, source is your own link on deflation.

      In a global economy goods and services are sourced internationally and are subject to various exchange rates. Rarely anything is ever 100% domestic

      • flames5123@lemmy.world
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        3 months ago

        Even if every ingredient doubled in cost (same as domestic inflation) and profit is a 1/6 of the burrito, we wouldn’t even be at $4. This is corporate greed.

        • ryannathans@aussie.zone
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          3 months ago

          Seems like it’s uber eats in the second pic so yeah a lot more markup?

          Energy costs many times what it did too

          • Zombie@feddit.uk
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            3 months ago

            Energy costs many times what it did too

            Perhaps for the consumer, not for the energy providers

            What costs more? Gas or wind? Oil or solar? Coal or wave?

            There’s a premium charged for new technology, sure. To cover R&D costs, new tooling, etc, but once the machinery is made, the fuel is essentially free. The wind blows itself, the sun has its own fuel, the tides move freely

            Energy arbitrarily costs more because those that sell it have decided it costs more. Aka corporate greed, which is what this post is complaining about in the first.

            • ryannathans@aussie.zone
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              3 months ago

              No, for one energy has gone up due to increased demand for fossil fuels after cutting Russian gas off