Musings on inflation

Inflation is back in the news. These thoughts were sent to me by Robin Smith, a long-term supporter, though a critical one.

• Inflation, through new money, is the best way for politicians to redistribute wealth In reduced purchasing power; it acts as a stealth tax, unjustly taking from the producer who saves and in hands out to the non producer who spend.
• As the distribution of wealth is already so poor, there are fewer wealthier votes to lose and millions of poorer votes to buy.
• The poorer recipients of the unjust taxation are a much bigger constituency. So it is perfect political expedience
• Given the wealth is pre-distributed to the poorer constituents, is there a catch? Yes, of course! The deficit spending always ends up in land values through higher rents.
• The poorer tenants can now afford to pay more, so the real-estate owner merely raises the rent.
• In the end, the poorer are actually the losers And the real-estate owners the winners
• Do the politicians look this far, when they get elected by an overwhelming majority for their unwise policy. Do they care?