“Inflation has now been institutionalized at a fairly constant 5% per year. This has been determined to be the optimum level for generating the most revenue without causing public alarm. A 5% devaluation applies, not only to the money earned this year, but to all that is left over from previous years. At the end of the first year, a dollar is worth 95 cents. At the end of the second year, the 95 cents is reduced again by 5%, leaving its worth at 90 cents, and so on. By the time a person has worked 20 years, the government will have confiscated 64% of every dollar he saved over those years. By the time he has worked 45 years, the hidden tax will be 90%. The government will take virtually everything a person saves over a lifetime.”
— G. Edward Griffin
I actually beat DownsizeDC to the punch and promoted the End the Inflation Tax action item before they did by incorporating it into this previous post and digging it. Of course, I don’t have nearly the reach that DownsizeDC has but…
Well, Perry Willis’ blog entry on the Inflation Tax subject is here.