It's not "caused by" the wealth gap. But the wealth gap creates conditions

that policymakers may respond to by choosing to run higher inflation rates. Higher inflation is a gradual and hidden tax on bondholders and thus a more politically palatable way of deleveraging than raising taxes or defaulting.

I agree that BBB is not a primary cause of inflation. It's the dramatic increases in the fed's balance sheet coupled with supply chain issues.

In response to this post by hoolstoptheheels

Posted: 11/26/2021 at 10:56AM

How does BBB counter inflation? Or is that a lie? ** -- HokieDan95 11/26/2021 08:07AM

Economics sez $T hitting the economy has nothing to do with it. ** -- ResistHoo 11/26/2021 09:00AM

Here’s a very good and I think objective article for your reading enjoyment -- 111Balz 11/26/2021 08:33AM

Why does the widening wealth gap contribute to inflation? -- hoolstoptheheels 11/26/2021 08:47AM

See below it was not my intent to suggest that the wealth gap causes -- 111Balz 11/27/2021 12:36PM

There’s a more complex relationship. As Balz points out, a little inflation -- TomGlansAski 11/26/2021 09:17AM

If you ask me, a big part of the reason that the Fed has been a little bit -- hoolstoptheheels 11/26/2021 09:36AM

It's not "caused by" the wealth gap. But the wealth gap creates conditions -- TomGlansAski 11/26/2021 10:56AM

This. I did not intend to say the gap causes inflation- my point was that -- 111Balz 11/27/2021 08:06AM

It's not "caused by" the wealth gap. But the wealth gap creates conditions

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