The Editor, The Times, London; 21 June 2023.
Dear Sir,
It seems to me that considerable money was created and spent into the economy during the COVID emergency, for the benefit of all. Either we recall it, or we let inflation adjust the value of the pound.
Inflation is a sneaky and unfair 'tax'; it erodes the value of cash savings, and penalises those on controlled wages, while those holding assets are immune.
It is hard to make people save. One can only tempt them, by raising interest rates. But that also is grossly unfair, imposing an impossible burden on poor people with mortgages while rewarding those with savings. Nor will it work while interest rates are lower than inflation, and there is still plenty of money around.
By far the fairest, and most direct way of recalling excess money would be by raising income tax. Yet that seem unthinkable in a democracy, so we all have to stand around wringing our hands and and pretending there is nothing that can be done.
(Is it not marvellous how tenaciously, and how sneakily, the better-off defend the interests of .... the better-off?)
Yours sincerely, Ian West
(Comments please, to <cawstein@gmail.com>)
