How will raising corporate taxes and increasing government spending lower inflation?
Presiden Biden and his spokespeople say the way to lower inflation is to raise corporate taxes and raise government spending.
On Friday, Biden tweeted this:
You want to bring down inflation?— Joe Biden (@JoeBiden) May 13, 2022
Let’s make sure the wealthiest corporations pay their fair share.
I had a few economics classes, and somehow I never came across that theory.
Ever since the government started throwing massive amounts of money at colleges starting in the 1960s, the price of tuition and the rest of the educational package for students has skyrocketed much faster than inflation. The schools had no incentive to control costs. It did not make colleges more affordable; it just changed how the whole thing was paid for. Now, after decades of running up costs and debt, Democrats' solution is to have other people pay the students' debt. Not once do they ever suggest that the colleges eat substantial amounts of the debt even though they were the beneficiaries.
When Democrats passed Obamacare, they promised the public that their costs would go down substantially. That was an obvious lie. How would substantially raising taxes, adding massive mandates, and taking away freedom of choice ever lower costs? Anyway, the prices people and businesses paid for premiums and out of pocket expenses skyrocketed.
The prices did stabilize when Trump and Republicans got rid of the individual mandate and people had the freedom of choice of what type of insurance to buy. Insurance companies no longer had a captive audience and had to compete for customers.
Biden says the way to make daycare cheaper is to have the government subsidize more of it. That does not lower costs; it just changes who pays for it. I have yet to see a government program that raises subsidies that also lowers costs. The suppliers of the product have no incentive to keep their costs down.
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