Inflation? or Government GREED?

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Jack Peterson
Posted
Posted

Well we all have our different thoughts and opinions, I have said mine so now, i will leave it up to the Armchair Economists to solve it all :wink: as I said it ai'nt hurtin me yet, I daresay the moans will come at some stage  for now exit stage left.jpg

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Rooster
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Posted
15 minutes ago, Jack Peterson said:

Well we all have our different thoughts and opinions, I have said mine so now, i will leave it up to the Armchair Economists to solve it all :wink: as I said it ai'nt hurtin me yet, I daresay the moans will come at some stage  for now 

:biggrin:

Much of the domestic turmoil in the economy has to do with the Tax Reform for Acceleration and Inclusion (Train) law, which came into effect this year. It has raised taxes on many commodities, while lowering personal income tax and corporate income tax.

https://www.scmp.com/week-asia/economics/article/2167169/weak-peso-rising-prices-hong-kongs-filipino-workers-take-hit

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Jollygoodfellow
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Inflation? or Government GREED?

How does a goverment gain from inflation ? 

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Foreigner
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57 minutes ago, Jollygoodfellow said:

How does a goverment gain from inflation ? 

Unanticipated inflation benefits government because government gains tax revenue as nominal income increases. a. The increase' in nominal income pushes people into higher tax brackets.

https://www3.nd.edu/~cwilber/econ504/504book/outln13c.html

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Jack Peterson
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Posted (edited)
1 hour ago, Jollygoodfellow said:

Inflation? or Government GREED?

How does a goverment gain from inflation ? 

The normal benefits are: Increased personal tax revenue: Personal tax revenues and national insurance contributions increase as wages increase. They do so because governments rarely index higher tax thresholds in line with inflation – a concept called “fiscal drag”.

 

http://inflationmatters.com/benefit-inflation-governments/

Now this is the UK but it follows :wink:

Edited by Jack Peterson
must get a new spell check LOL
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OnMyWay
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Posted

It could be worse!

Venezuela's 2018 Inflation to Hit 1.37 Million Percent, IMF Says

Fund sees consumer prices rising 10 million percent in 2019

https://www.bloomberg.com/news/articles/2018-10-09/venezuela-s-2018-inflation-to-hit-1-37-million-percent-imf-says

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Jack Peterson
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14 minutes ago, Foreigner said:

How does a goverment gain from inflation ? 

Something that was mentioned by my Wife and Colleagues not long ago  Inflation is taxation.jpg and Governments gain on this :smile:

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Jack Peterson
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3 minutes ago, OnMyWay said:

It could be worse!

Inflation and beyond a joke.jpg :thumbsup:

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Foreigner
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Posted
2 hours ago, Jack Peterson said:
  2 hours ago, Foreigner said:

How does a goverment gain from inflation ? 

I never said (asked) this.  I was quoting JGF.

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bastonjock
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I can vouch on the cost of building materials going up

Ive had to purchase all of my materials for my jungle hut and cut down on the number of bedrooms 

Ive seen real on the ground comments about the price of rice increasing  and a referrence to some wholesalers holding their prices , if the locals are hoping that the price of a kilo of rice does not increase by a few pesos, then its definately hitting the guys on the ground

My gf had to pay tax on my piece of land and it has been valued at 800k more than i paid for it ,so the tax bill also went up and the tax office explained that they were raising money to pay for all the new roads etc.

Ill go with the theory that a lot of the inflation os being caused by the weak peso  , the Philippines imports a lot of food and that and items like fuel have a direct effect on prices 

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