The article points out that’s the problem. It’s not only them. The government sets fiscal policy while the central bank sets monetary policy. The article has quotes from economists saying that the government has been doing little to nothing to fight inflation with changes to fiscal policy and leaving it all up to the central bank, which can really only adjust the interest rate.
So it’s more like “the helicopter ambulance crew is getting patients to the hospital but there’s a lack of medical professionals and funding so the patients aren’t doing so well, but everyone is acting like it’s the ambulance crews fault for not doing enough when the government is the one who controls healthcare funding”
Personally, I think the government isn’t changing their fiscal policy because it’s bad for politicians. In order for them to rein in inflation they’d need to raise taxes and implement more financial regulations which would be incredibly unpopular right before a tight election.
Are we right before a tight election though? We’re basically mid-term right now. Next election doesn’t need to be called until the Fall of 2025
I agree that it’s politically problematic to make tax scheme adjustments. No matter the reasoning it can be spun to be negative, especially by the Taxation is Theft crowd. But like, if it can only be done within the first year of any particular parliament that basically means our elected representatives can never do anything in response to inflation.
The article points out that’s the problem. It’s not only them. The government sets fiscal policy while the central bank sets monetary policy. The article has quotes from economists saying that the government has been doing little to nothing to fight inflation with changes to fiscal policy and leaving it all up to the central bank, which can really only adjust the interest rate.
So it’s more like “the helicopter ambulance crew is getting patients to the hospital but there’s a lack of medical professionals and funding so the patients aren’t doing so well, but everyone is acting like it’s the ambulance crews fault for not doing enough when the government is the one who controls healthcare funding”
Personally, I think the government isn’t changing their fiscal policy because it’s bad for politicians. In order for them to rein in inflation they’d need to raise taxes and implement more financial regulations which would be incredibly unpopular right before a tight election.
Are we right before a tight election though? We’re basically mid-term right now. Next election doesn’t need to be called until the Fall of 2025
I agree that it’s politically problematic to make tax scheme adjustments. No matter the reasoning it can be spun to be negative, especially by the Taxation is Theft crowd. But like, if it can only be done within the first year of any particular parliament that basically means our elected representatives can never do anything in response to inflation.