It’s that the effects are mostly felt by working Americans, who are not eligible for government assistance. They may have just missed the cut for eligibility. They may be earning larger amounts, or own a business.
But, their income will NOT rise significantly, even though inflation does.
On the other hand, we have those who care little about inflation, as they are protected from its effects:
- The government-supported poor – those receiving monthly family assistance, food stamps, insurance from government programs. If the value of the dollar shrinks, they are given Cost of Living increases. When the dollar deflates, they never lose that increase. It’s a one-way rachet.
- The government workers – from city to county to state to federal, they all have paycheck protections. Many have negotiated COLA protections, others have to spend some time lobbying for it. But, sooner or later, that protection kicks in.
- Social Security recipients – I’m getting a $40/month raise due to this (but, it’s more than offset by the increased costs I’m paying, just for food and other necessities).
- Government retirees – they already have VERY cushy benefits. But, also COLA.
Now, those who are already getting a check that’s on the higher end, will also receive more COLA. Those who barely qualified for retirement money will receive less. Non-coms retiring will get a little more, generals vastly more.
With almost half of the population receiving some assistance from government (some say MORE than half – a lot of that is in the form of goods or services – EBT, housing assistance, health insurance subsidies), that’s a huge chunk of the population that suffers less from inflation than the people who are providing that money in the form of their taxes. And, if you are getting back MORE money than you paid, you are a tax receiver, not a taxpayer.
Inflation is a hidden tax. One that transfers OUR wealth to those in power…who aren’t affected by it. Which is why we have inflation . This really isn’t complicated, just evil.
Worse than a hidden tax. Here is evidence that TPTB know it too and run when confronted by it, so no newshound will ever again do what one did to President Ford.
In 1974 the Nixon Whitehouse began a huge PR campaign titled “Whip Inflation Now” including a wide dispersal of WIN buttons.
In his 1976 campaign, then President Ford had been pilloried by inflation news. At a press conference he admitted that solving inflation seemed so evasive that that was why he was wearing him WIN button upside down.
Some press wag quickly pointed out that WIN upside down spelled NIM, and that Nim meant theft. As inflation became much worse during the consequent Carter years, all that silliness quickly became a distant memory.
Fast forward to today, and
So yes, inflation is not simply a hidden tax, it is outright theft where, as you say, our wealth is stolen by those in power, and those in power and in the press (but I repeat myself) know it.