“Inflation is a tax on money, wealth creation, income, and work effort. Inflation is a devastating tax on savings. But low inflation is a tax cut. By enhancing the value of financial assets, price stability rewards patient savers and investors. It is a stimulant to capital formation, new business start-ups and growth. Growth does not cause inflation, low inflation causes growth." Lawrence Kudlow, American Abundance
The above passage comes from Larry Kudlow's 1996 book, American Abundance. He was writing about the Bill Clinton economy. Kudlow plainly didn't agree with Clinton on everything, particularly when it came to taxation of income, but he cheered the Clinton administration's oversight of the dollar.
Read Full Article »