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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Katelew who wrote (71279)	6/9/2008 4:54:02 PM
From: Lane3	Read Replies (1) \| Respond to of 542192

in that inflation is perhaps capitalism's greatest enemy. I agree with that. Nothing is worse than runaway inflation. I also thought that it was bizarre to have a right-winger like Krauthammer advocating using tax increases in such a way. I seriously doubt he's cheerful about anything that raises taxes. I imagine he recognizes the need to reduce demand and finds that the least objectionable of the alternatives. There are no good choices. We have to choose the least worst. For him, that's the tax. I sure can't think of a better alternative. Don't forget that he suggested reducing the payroll tax to compensate those least able to tolerate the added cost of gas. Re inflation, adding a tax raises the price but that's different from inflation-elevated prices. I think that the distinction is important. Inflation is a kind of bubble. The tax part of the cost of gas isn't bubbly at all. The speculation component is part bubble. The tax isn't.

To: Katelew who wrote (71279)	6/9/2008 5:31:07 PM
From: Steve Lokness	Read Replies (2) \| Respond to of 542192

Katelaw; Starting with that premise, my mind then goes to the fact that no single thing can drive inflation more than can the price of a barrel of oil. No single thing drives higher prices than the printing of money. Higher prices are NOT inflation. Inflation is the printing of money. Too much money then under the economic laws of supply and demand result in higher prices. .....The tax on gasoline and/or oil has been going down. Since it is a per gallon or per barrel charge - as the prices skyrockets, tax percentage decreases. You can thank Bush and Greenspan for higher prices - because our dollar has crumbled under this administration and because of the insane deficit spending to pay for the war. I fear the economy has been managed about the same as the Iraq war - disastrously. steve