'markup growth”—the increase in the ratio between the price a firm charges and its cost of production—was a far more important factor driving inflation in 2021 than it has been throughout economic history.'
So the government tracks wages and unemployment, and sharply reacts when wages grow too fast.
But when it comes to profits, they can't even tax them correctly, let alone react to profits driving inflation.
Wouldn't agressive taxation be an alternative to raising interest rates in tackling inflation? Both reduce avaliability of capital.
Is there any reason why raising interest rate is 'fair' but a temporary 'inflation tax' is unfair?
So the government tracks wages and unemployment, and sharply reacts when wages grow too fast.
But when it comes to profits, they can't even tax them correctly, let alone react to profits driving inflation.
Wouldn't agressive taxation be an alternative to raising interest rates in tackling inflation? Both reduce avaliability of capital.
Is there any reason why raising interest rate is 'fair' but a temporary 'inflation tax' is unfair?