GShock wrote:I don't know how much you know about economy, but inflation is a method of taxation. The money you have printed (while the houses/lands are the same in numbers and value) alters the law of demands & offers.
If i put 10$ brand anew in the market, which are mine and printed by me, in a country whose property value amounts to 5$ and where 5 citizens have each 1$, the inflation will be 50% increase (the new 10$ = 5$ property + 5$ money).
It means the buying power of these citizens drops 50% and i have actually taxed them (if they could buy 1kg of bread for 1$ now they can buy 1kg of bread with 2$) because it's the same as if i taxed them 50% of what they own.
runyan99 wrote:You can call inflation 'a form of taxation' only with respect to the buying power of consumers in the economy
GShock wrote:It's exactly what i said.
Either you tax them (and take their money) or you print money (and hurt their buying power by inflating prices) you're still affecting economy so that you have $ in your hands and they pay.
That's why these options should exclude one another in the game. Failing to do that, they should be tied so that one also affects the other.
runyan99 wrote:If I have $1000 in my pocket, and the government prints money, I still have $1000 in my pocket.
runyan99 wrote:If the government then raises a tax, and tells me to pay $200, they can do that.
There is no logical basis for your supposition that one option excludes the other.
GShock wrote:If you could buy 1000 candies with 1000$ before the money was printed and after the printing you could buy 800 with 1000$ that works exactly like a permanent tax of 200$.
GShock wrote:I fail to understand why VA doesn't produce a single dollar until late in 61 and i would really like an answer on this. Yet i see none of you is argumenting on this detail i pointed out... I am debating on your arguments but you don't answer to mine.
I see here one of the 2 sides going to war in '61 with a production of 35$/turn so it can't afford to buy a single supply wagon and you say the economic system is effective?
D'oh...![]()
GShock wrote:I fail to understand why VA doesn't produce a single dollar until late in 61 and i would really like an answer on this. Yet i see none of you is argumenting on this detail i pointed out... I am debating on your arguments but you don't answer to mine.
I see here one of the 2 sides going to war in '61 with a production of 35$/turn so it can't afford to buy a single supply wagon and you say the economic system is effective?
D'oh...![]()
GShock wrote:I fail to understand why VA doesn't produce a single dollar until late in 61 and i would really like an answer on this.
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