Roger’s Rules

By Roger Kimball

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Don Meaker
2008-05-02 16:33:32

Inflation, defined as the change in cost of a basket of goods and services, sets pay raises for government programs and union ‘cost of living’ increases. Still, productivity increases should result in a reduction in costs. Government creates money to make up for that increase in productivity, and before you marvel at their cleverness, the Government gets to spend that newly created money first. That creation of money is a tax on US productivity.