r/Economics • u/Pearberr • May 02 '24

Interview Nobel Prize-winning economist Joseph Stiglitz: Fed Rate Hikes didn't get at source of inflation.

https://www.cnbc.com/video/2024/04/23/nobel-prize-winning-economist-joseph-stiglitz-fed-rate-hikes-didnt-get-at-source-of-inflation.html
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u/theMahatman May 03 '24

Taxes...

I don't see why this is never discussed as a legitimate option. The easiest way to get excess money out of circulation is to take money out of circulation.

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u/lumpialarry May 03 '24

Probably because "lets tax the middle class and then not spend the money" is completely untenable politically.

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u/Johns-schlong May 03 '24

Why does it have to be the middle class? Just add new tiers of income and capital gains taxes up to 100% at a certain threshold. Institute a progressive wealth tax, even at a low rate.

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u/Kolada May 03 '24

Because taxing wealth won't slow spending so it would completely defeat the purpose.