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:

  • discountsocialism [none/use name]
    ·
    3 years ago

    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.