It destroys the money that people have in the bank. It’s an unmitigated disaster.
Correct. The time-value of money becomes hyperbolically decays beyond the present moment, so there becomes little way to engage in effective savings, which implies no viable capital accumulation, and hence no real mechanism for sustainable finance & investment.
Correct. The time-value of money hyperbolically decays beyond the present moment, so there becomes little way to engage in effective savings, which implies no viable capital accumulation, and hence no real mechanism for sustainable finance & investment.
Yep!
It is also a massive transfer of wealth to the Government, Government favorites and people who own real assets (The rich).
It is the most destructive thing possible (economically) to the middle class.
One more point: The capital gains tax is not indexed to inflation. The higher the inflation, the more tax owed (even assuming that the inflation indexed value did not change). It becomes a tax on property owned.
Real Estate