The post-Covid fiscal deficit reduction continues to take its toll: Higher prices automatically result in a spike in tax receipts: Higher prices, now largely from energy prices pushing up costs, reduce the inflation adjusted value of the public debt, which acts like a tax on the economy: With the rate of CPI increase above […] The post Consumer sentiment, Federal receipts, CPI appeared first on Mosler Economics / Modern Monetary Theory .
The post-Covid fiscal deficit reduction continues to take its toll:
Higher prices automatically result in a spike in tax receipts:
Higher prices, now largely from energy prices pushing up costs, reduce the inflation adjusted value of the public debt, which acts like a tax on the economy:
With the rate of CPI increase above the rate of deficit spending, the effect is that of a budget surplus:
Spiking energy prices as Saudis set prices ever higher shift $ from consumers with high propensities to spend to producers with low propensities to spend, and this won’t end until demand collapses:
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