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Politics : Right Wing Extremist Thread
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To: Neocon who wrote (13127)7/26/2001 2:16:58 PM
From: DMaA  Read Replies (1) of 59480
 
Yes, excess but stable tax rates do not contribute to inflation. They do however result in a slower GDP growth year after year after year.

If we assume that there is stability, the inflationary effect of passing on labor costs should not be escalating. However, you are right enough, if one is at the beginning of the process, and eventually prices increase, one will lose some buying power, or set off a new round of adjustments.
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