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RE: Thus Spake Peter Schiff

in #bitcoin6 years ago (edited)

Great post. I have always had the same philosophy. There is one small detail that is somewhat incorrect though. Printing new money to devalue it doesn't just tax the poor. It affects everyone. I will give you an example. Let's say a rich man has $200,000 in his bank account which he can use to buy an exotic car that costs $200,000. The government prints enough money to devalue it by 100%. That same $200,000 is now worth half of what it was before the devaluation. That same exotic car that cost $200,000 before the devaluation will now cost $400,000. That rich man can now not afford to purchase that car. If you understand it to this degree then the argument that it is taxing the poor is irrelevant. The poor man who has $10 in his bank account was barely affected. It had an astronomical effect on the rich man. After the devaluation of money then the minimum wage will be raised. This also devalues money but has little effect on the poor. Again this has an astronomical effect on the rich because they are still making the same amount of money but that money is worth less because the poor people are now making more. Raising the minimum wage somewhat evens the playing field and softens the effects on the poor from the devaluation of money. This raising of minimum wage however does not help the rich in any way. I could go on for days but I'm kind of getting off topic here. I do like the post though. I will up vote it and follow you. Thank you for the quality post

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You are right. But devaluation of the small man's money is nothing to devaluation of the rich guy's money. Sometimes it is a matter of very average life status and poverty. While for the rich man, it is 2 lambos instead of 3.

Yeah. We're both on the same page.

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