• The post you are reporting:
   
  Alex, printing money will actually make the rich richer. Why? Because the rich don't actually possess money, they possess assets such as property and shares. If you print money you will eventually make the price of those assets rise (in money terms). The poor will still be just as poor because they have already blown the nice new notes you gave them, while the rich are rubbing their hands over how their property portfolio has just doubled in value, and the rental income too.
  
  It's an economic and mathematical truism that the poor (those who earn too little or spend too much to be able to save) will always remain poor, while those who save and invest will grow richer. So the gap will always continue to widen, not even the use of Keefonomics can change that.
  
  However, introducing supply-side policies to strengthen the productive private sector will eventually lead to employers becoming able to pay higher wages, the better-off workers will therefore pay more in tax, enabling the government to take more low paid people out of tax altogether.
  
  Reducing the rate of corporation tax is key to this. Actually I would favour abolishing it altogether, transferring the burden onto the recipients of dividends.

Report Post

Your Name

Reason