> ...against a specifically targeted class rather than dumping it wholesale on the economy as inflation...
I doubt it. Taxing high asset people:
- Doesn't create more stuff.
- Doesn't cause them to consume less stuff.
With that in mind, in terms of inflation it's just going to express itself as less investment leading eventually to higher prices. If the government is dumping money into the system it isn't causing the ultra-wealthy to be less competitive using it to buy consumer goods. There'll maybe be an early bump as the seeds of future prosperity get consumed instead of planted but the net long term effect is not going to be wealthy people eating any of the costs of inflation.
I doubt it. Taxing high asset people:
- Doesn't create more stuff.
- Doesn't cause them to consume less stuff.
With that in mind, in terms of inflation it's just going to express itself as less investment leading eventually to higher prices. If the government is dumping money into the system it isn't causing the ultra-wealthy to be less competitive using it to buy consumer goods. There'll maybe be an early bump as the seeds of future prosperity get consumed instead of planted but the net long term effect is not going to be wealthy people eating any of the costs of inflation.