Path: utzoo!censor!becker!ziebmef!stephen
From: stephen@ziebmef.uucp (Stephen M. Dunn)
Newsgroups: can.general
Subject: Re: Tax Revolt Now!!
Summary: you're damn right it's inflationary
Keywords: our tax load is revolting ... why aren't we?
Message-ID: <1989Aug15.124538.15493@ziebmef.uucp>
Date: 15 Aug 89 16:45:35 GMT
References: <2713.24E6443D@isishq.FIDONET.ORG> 
Reply-To: stephen@ziebmef.UUCP (Stephen M. Dunn)
Organization: Ziebmef Public Access Unix, Toronto, Ontario
Lines: 28

In article  kim@watsup.waterloo.edu (T. Kim Nguyen) writes:
[...]
$The FST will indeed slow the slowing economy, but I fail to see how
$that will boost inflation.  Oh, OK, maybe I do.  Costs will rise, so
$there might be some inflationary pressure to increase wages, however
$isn't it likelier that people will reduce their discretionary
$expenditures? 

   Yes, people will reduce their discretionary expenditures (is that such a
good thing, though - a lower standard of living?).  However, consider the
following scenario.

(bargaining time at some company)

Union rep:  Inflation's gone up to 10% per annum.  Give us a 10% raise!

Company rep:  But your members have reduced their discretionary expenditures.
   You don't need a raise.

Union rep:  You're right.  We don't need a raise.

Now, tell me that's likely.  (No, this ISN'T an anti-union flame; I'm just
using them as an example)
-- 
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! Stephen M. Dunn              stephen@ziebmef.UUCP ! DISCLAIMER:  Who'd ever !
!---------------------------------------------------! claim such dumb ideas?  !
! I have become comfortably numb ...                ! I sure as heck wouldn't !