Friday, September 10, 2010

Check Out a Couple of Posts From the Futurist

In Taxation and Recession, the Futurist makes the logical argument against a capital gains tax: There should be no capital gains tax at all. This is for the simple reason that if a person sells an appreciated asset, and then pays a capital gains tax, they no longer can buy back the same asset that they had just sold.

There is also this little tidbit that I have long believed: Socialism is much more rigged in favor of the ultrawealthy than capitalism is. ... In socialism ... only the ultrawealthy can afford to bypass the oppressive rules placed on everyone else ... .

Guys like Soros and Buffet can afford to be socialists because they have their pile and they know how to keep it.

Also the Futurist's previous post, The Techno-Sponge, argues that the deflationary pressure on high tech goods as a result of Moore's Law is "soaking up", so to speak, the inflation that would otherwise be running wild. I think his analysis may be flawed. Falling housing prices and the relative stability of fuel prices have been, if not deflationary, at least anti-inflationary, more so than technology. The level of unemployment is probably the largest deflationary weight at the moment. In my opinion, none of these will be sufficient over the course of the next couple of years to prevent inflation, but read the Futurist's view and draw your own conclusions.

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