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Consumer sentiment, Federal receipts, CPI

Summary:
The post-Covid fiscal deficit reduction continues to take its toll: Higher prices automatically result in a spike in tax receipts: Higher prices, now largely from energy prices pushing up costs, reduce the inflation adjusted value of the public debt, which acts like a tax on the economy: With the rate of CPI increase above the rate of deficit spending, the effect is that of a budget surplus: Spiking energy prices as Saudis set prices ever higher shift $ from consumers with high propensities to spend to producers with low propensities to spend, and this won’t end until demand collapses:

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The post-Covid fiscal deficit reduction continues to take its toll:

Consumer sentiment, Federal receipts, CPI

Higher prices automatically result in a spike in tax receipts:

Consumer sentiment, Federal receipts, CPI

Higher prices, now largely from energy prices pushing up costs, reduce the inflation adjusted value of the public debt, which acts like a tax on the economy:

Consumer sentiment, Federal receipts, CPI

With the rate of CPI increase above the rate of deficit spending, the effect is that of a budget surplus:

Consumer sentiment, Federal receipts, CPI

Spiking energy prices as Saudis set prices ever higher shift $ from consumers with high propensities to spend to producers with low propensities to spend, and this won’t end until demand collapses:

Consumer sentiment, Federal receipts, CPI

WARREN MOSLER
Warren Mosler is an American economist and theorist, and one of the leading voices in the field of Modern Monetary Theory (MMT). Presently, Warren resides on St. Croix, in the US Virgin Islands, where he owns and operates Valance Co., Inc.

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