Inflation is a tax on us all

Source: Orange County Register
by Jon Coupal

“Milton Friedman explained that inflation is always ‘a monetary phenomenon in the sense that it is and can be produced only by more rapid increase in the quantity of money than in output.’ Inflation hits everyone, but especially the middle class and those on fixed incomes. Inflation is a threat to the middle class because price increases reduce purchasing power so that the things that the middle class could previously afford are now out of reach. This pushes the lower rungs of the middle class out of the picture. The disproportionate impact of inflation on the middle class relative to the wealthy may seem counterintuitive because the inflation rate — projected now at over 6% — is the same for everyone. But while all suffer the same rate of inflation, those with lower incomes tend to have lesser means of adapting to the increases in consumer prices.” (01/02/22)