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Why Inflation is Called an Invisible Tax

inflation
Learn why Inflation is called Invisible Tax

What is Inflation?

When the quantity of paper money increases in the economy, purchasing power of thea monetary unit drops which leads to price rise. This is called inflation.

Inflation is also called invisible tax.

Why Inflation is called Invisible Tax?

Since it is not directly imposed by the Government.

Future purchasing power of $100
Future purchasing power of $100

Central Bankers On Inflation

Inflation at its current level is due to high rate of increase in prices of vegetables, pulses and edible oils.

Ayn Rand on Inflation

Inflation is not caused by the actions of private citizens, but by the government, by an artificial expansion of the money supply required to support deficit spending.

Henry Youngman on Inflation

Americans are getting stronger. Twenty years ago, it took two people to carry ten dollars worth of groceries. Today, a five year old can do it.

Sam Ewing on Inflation

Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.

Milton Friedman on Inflation

Inflation is taxation without legislation.

Ernest Hemingway on Inflation

The first panacea for a mismanaged nation is inflation of the currency. The second is war. Both bring a temporary prosperity. Both bring a permanent ruin.

John Maynard Keynes on Inflation

By continuing a process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.

Warren Buffett on Inflation

If you forego ten hamburgers to purchase an investment; receive dividends which, after tax, buy two hamburgers; and receive, upon sale of your holdings, after-tax proceeds that will buy eight hamburgers, then you have had no real income from your investment, no matter how much it appreciated in dollars. You may feel richer, but you won’t eat richer.

Warren Buffett
The best assets you can have during inflation are your abilities.

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