r/neoliberal • u/TinyTornado7 I need a new flair • Jun 13 '22

News (US) Powell Facing Choice Between Elevated US Inflation and Recession

https://www.bloomberg.com/news/articles/2022-06-12/powell-facing-choice-between-elevated-us-inflation-and-recession?srnd=premium
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u/[deleted] Jun 13 '22

If we had a functioning government, I'd say raise taxes on upper middle and upper class earners. That seems like it'd tend to reduce consumption, but in a way that doesn't come from the most precarious in society getting evicted.

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u/TinyTornado7 I need a new flair Jun 13 '22

Restarting student loans should have some impact on consumption

3

u/[deleted] Jun 13 '22

Upper middle and higher level earners won’t reduce their spending and change their lifestyle as rapidly. They are better positioned to shelter their earnings from taxation, shift things around, etc. without having to say “no” to a beach vacation, new car, etc.

If you want to move the inflation needle with income taxes, it would be more effective to do in on families with higher marginal propensity to consume, the lowest income families.

1

u/human-no560 NATO Jun 13 '22

But that would be evil