So we know Inflation is mainly due to too much money swirling around in the economy and/or price gouging
Is the answer higher taxation on the rich? More price regulations? Or something more nuanced?
I changed the title from Leftist to Soc-dem, cause leftist answers usually mean complete revolution- what's an answer that I can condescendingly tell my centrist friends that will 'fix' the economy without throwing all working economists to :gulag:
Hmm I think a dem soc would use taxation to curb inflation. If they take money out of circulation with taxes, and instead use it for consumption, hold it or destroy it, then it would in theory reduce inflation. A soc dem would use reserve bank interest rates to slow lending. Both tactics don't stop the most vulnerable from being ravaged by the system.
Removing money from the supply with taxes would cause deflation, which would cause indebted people to be further in debt, and the working class would need to take pay cuts every year instead of pay raises. Inflation is controlled when the central bank buys or sells bonds to the government to control the supply of money and money from taxes is only used to provide liquidity for those day to day transactions.