Inflation: an undemocratic stealth tax

Nog uit 2011, maar juist nu voor NL uiterst actueel.

INFLATION is taxation without legislation, as Milton Friedman, the Nobel prize winning economist, once said. He was spot on. Yesterday’s figures were truly appalling: inflation on the retail price index measure hit 5.6 per cent, the fastest rate for 20 years. On the official consumer price index measure, it reached 5.2 per cent. Over the past 12 months, the British public has suffered a real terms national pay cut because prices are rising at a much faster rate than incomes. Average compensation went up 2.8 per cent in cash terms – but paradoxically fell by 2.8 per cent in real terms as the purchasing power of money slumped, as a result of sterling’s debasement.